The Honorable Bill Frist
Majority Leader
416 Russell Senate Office Building
Dear
Senator Frist:
The National Grange supports S. 150, The Internet Tax Non-Discrimination Act (ITNA), which would make the existing federal moratorium against state and local taxes on Internet access, as well as “multiple and discriminatory” taxes targeting Internet commerce, permanent and national in scope. We would appreciate your support for this important legislative initiative.
The National Grange, founded in 1867, is the nation’s oldest rural public interest and general agricultural organization. Today the National Grange represents nearly 300,000 Grange members, located in 37 states.
From its very beginning, the National Grange has sought to improve the quality of life for rural Americans. Over a century ago, rural Americans were relegated to limited horse and buggy mail service, leaving them disconnected from the rest of society. Because of support from the National Grange, rural Americans won the right to free mail delivery service.
Today,
the Grange is at the forefront of another battle to retain the technological
advancements connecting the world to rural
Now the 1998 tax moratorium is due to expire, and with that expiration is the real threat of short sighted and uncoordinated efforts by state and local governments to raise revenues through taxation of Internet access that will reverse the substantial progress we have made to bring advanced telecommunications technologies and services to rural communities. Since new technologies are particularly key to ensuring Internet access to rural America, it is vital that new law ensures technological neutrality – so consumers are protected by the federal moratorium no matter what technology they use to access the Internet.
ITNA would
also preserve our national commitment to universal phone service. Section 4 of S. 150 states that nothing in
the ITNA shall prevent the imposition or collection of any fees or charges used
to preserve and advance universal service or similar State programs authorized
by section 254 of the Communications Act of 1934. The National Grange strongly supports these
provisions that maintain our national commitment to universal phone service in
rural
The National Grange also believes that simple extension of the 1998 Internet tax moratorium would be insufficient to protect innovative and advanced communications technologies from arbitrary taxation schemes that would hinder or impede their deployment in rural areas. The Internet Tax Non-Discrimination Act, with the managers’ amendments, is intended to exempt access to the Internet from taxation, including transmission. Keeping the current language in place would perpetuate a competitive disadvantage among Internet providers by exempting some types of high-speed Internet access from taxation while other types of Internet access that are more suitable for deployment in rural areas would become taxable and would, therefore, make rural consumers especially susceptible to substantial taxation of their Internet access.
All Americans
deserve an opportunity to reap the benefits of the Internet and our society
will benefit if we continue to encourage Internet services to every American. Outdated laws create barriers to competition
in rural
On behalf of the National Grange, we urge your support for S. 150.
Thank you for considering the views of the National Grange. Please contact me with any questions or to learn more about the National Grange’s position on this important issue.
Sincerely,
Leroy Watson
Director of Legislative Affairs
The National Grange of the Order
of the Patrons of Husbandry