For Washington Senator Patty Murray, September has been a busy month.
Former state Republican Party Chairman Chris Vance announced his candidacy for the U.S. Senate, launching an “underdog” campaign against the Democratic incumbent. While Sen. Murray will surely have her hands full for quite some time, she now has a very small window of opportunity to act on behalf of a vital measure that would benefit Washington’s 7 million residents.
On Thursday, a nationwide ban that prevents states and localities from slapping taxes on Internet access will expire. If the U.S. Senate fails to take up and pass the Permanent Internet Tax Freedom Act — a bill that has already cleared the House of Representatives — Washingtonians and Americans across the country will find it much costlier to go online.
Originally enacted in October of 1998, Democratic President Bill Clinton signed the Internet Tax Moratorium into law as a way to promote consumer and business adoption of this transformational technology by minimizing government-imposed financial obstacles. Given the unbridled success of the state’s Internet ecosystem and online economy, it is evident the legislation has been (and is) doing its job.
In December 2012, the TechNet State Broadband Index ranked Washington No. 1 for broadband adoption, network quality and economic structure. “The ingredients for meeting those goals,” according to the ranking, “are fast and ubiquitous broadband networks, a population of online users, and an economic structure that helps drive broadband innovation and investment in new broadband uses.”
The Internet Tax Moratorium has successfully thwarted barriers to broadband access and adoption, boosting Washington’s economy and driving industry growth across countless sectors. And as an original cosponsor of the Internet Tax Freedom Act, Sen. Murray is in a position to pass the measure before the Oct. 1 deadline.
Championed by Rep. Bob Goodlatte, R-Virginia, and Rep. Anna Eshoo, D-California, the Permanent Internet Tax Freedom Act overwhelmingly passed the House in June, with 188 bipartisan co-sponsors. The Senate’s measure now has 51 supporters, meaning it would pass if it were brought to the floor. But in keeping with the political gamesmanship and gridlock on Capitol Hill, some senators are attempting to conflate tax-free Internet access with an entirely unrelated piece of legislation known as the Marketplace Fairness Act.
The Marketplace Fairness Act would create a federal statute permitting state and local governments to rake in online sales taxes from companies having no physical presence within their borders. It is a contentious proposal that has already faced serious opposition in the House of Representatives, failing to get close to a vote last session.
In any case, the Marketplace Fairness Act has nothing to do with the extension of the widely popular — and bipartisan — Internet Tax Moratorium awaiting action. Trying to unite the two only makes the expiration of the access tax ban that much more of a risk.
Should the Senate fail to permanently extend the measure, the Internet could be subject to taxes twice as high as those imposed on the sale of other goods or services. This means Washington’s Internet users could see a double-digit hike in their monthly bill for Internet service, which could push some offline and limit the vital web resources that they have grown to rely on for education, e-commerce, and medical advice.
As a cosponsor of the Senate’s version of Permanent Internet Tax Freedom Act and a powerful voice in Washington, D.C., Sen. Murray can drive home a legislative win for consumers at home and across the country. Her colleague, Sen. Maria Cantwell, should chip in as well to put the bill over the top.
The House has done its job in protecting consumers from destructive and unnecessary Internet access taxes. Now the Senate must follow suit, without allowing other divisive issues to get in the way. It’s not only good policy, it’s good politics.
Pete Sepp is president of the National Taxpayers Union, a non-partisan citizen group founded in 1969.
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