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OPINION
BUSINESS, ECONOMY, AND FINANCE

Don't discourage use of Internet: Opposing view

Ron Wyden
Sen. Ron Wyden, D-Ore.

Today, more than ever, our country needs to encourage Internet access and facilitate the growth of the digital economy, not tax them.

The Internet is the global platform for commerce and the free exchange of ideas. The leaders of the digital economy include America's biggest employers. And it is increasingly clear that leading the digital economy will be the only way to keep America ahead of the economic pack.

In 1998, just as the Internet was blossoming into a global platform for commerce and expression, I co-authored the Internet Tax Freedom Act (ITFA), along with Republican Rep. Chris Cox, to protect the Internet from access taxes, and taxes that discriminate against activity just because it occurs online.

ITFA ensured that existing brick-and-mortar businesses couldn't lobby for new taxes that would put their online competitors at a major disadvantage.

The Internet is among the most transformational technologies created, judging by its impact on how societies organize and how commerce is conducted. It is unique in its ability to democratize information and level the economic, social and political playing field. That's why it has long been a national policy to promote the deployment and use of broadband Internet access.

Internet access isn't something that should be available only for those who can best afford it. Without ITFA, the cost of Internet access would likely be significantly higher.

For example, ITFA doesn't apply to wireless services. As a result, state and local governments routinely apply fees as high as 15% or 20% on cellphone services, similar to the level of taxes on a pack of cigarettes. But unlike tobacco, the government wants to encourage Internet use, not discourage it. Make no mistake, if ITFA expires, the cost of Internet access will rise, and because your data plan is currently protected, your cellphone bill will, too.

Congress must extend ITFA next month. It is clearly in America's interest to prevent regressive Internet taxes that stifle America's winning digital economy and put an unfair burden on working-class families.

Sen. Ron Wyden, D-Ore., chairs the congressional Joint Committee on Taxation.

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