CEO DATELINE - Telecomm associations tie Internet taxes to net neutrality
CEO DATELINE - Telecomm associations tie Internet taxes to net neutrality
- December 15, 2015 |
- Walt Williams
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Three telecommunications industry associations are asking Congress to renew a ban on Internet taxes, saying the prohibition is needed more than ever because of federal efforts to enforce net neutrality standards.
Federal law currently prohibits states and local governments from taxing access to the Internet. In a Dec. 14 letter, the associations say the ban has become "an engine for economic growth." They note combined sales taxes on other telecommunications services range from an average of 11.5 percent to a high of 17 percent, depending on the state and local jurisdiction.
"Because of this bipartisan policy achievement, most Americans have never paid these taxes on their broadband access," the groups wrote.
However, earlier this year the Federal Communications Commission voted to regulate broadband Internet services as a utility—a move that gives regulators more latitude in enforcing net neutrality principles like preventing companies for charging extra for higher access speeds to certain websites.
The three groups said the FCC's decision opens up the industry to "new onerous telecommunication taxes and fees" unless the ban is renewed. The law is currently set to expire at the end of the year.
"At a time when promoting broadband adoption is a national priority, Congress should ensure that every American can afford to participate in the digital economy by making the expiring ban on Internet access taxation permanent," the groups said.
The National Cable and Telecommunications Association, CTIA and U.S. Telecom Association signed the letter. http://bit.ly/1Nnh4Z3
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