Internet access—and its concomitant ability to communicate, educate, and telework—should not be taxed. At a time when most people agree that the U.S. needs more broadband, Internet access taxes will slow broadband deployment, particularly in rural and low-density areas. Fewer consumers will buy a higher-priced taxed product. A smaller pool of potential customers means providers can’t justify investment in new broadband infrastructure build-out.
In addition, taxing Internet access widens the digital divide and limits the economic, educational and healthcare opportunities available to lower-income Americans. Only 11 percent of households with incomes below $30,000 have broadband service, compared to 61 percent of households with incomes above $100,000. Furthermore, taxing Internet access raises broadband costs for telework, distance learning, interactive medicine, and new online business models.
NetChoice endorses a permanent tax moratorium to encourage continued innovation on the ‘Net.