March 23, 2004

 

Senator Christopher Bond

United States Senate

Senate Russell Building 274

Washington, DC 20510

 

Dear Senator Bond:

 

I am writing this letter asking you and all members of the U.S. Senate to support passage of the Internet Tax Non-Discrimination Act (S. 150).  CapNet is a strong proponent of permanently extending the moratorium on Internet access taxes which will promote economic growth and innovation in America’s high technology industries.

 

CapNet opposes Sen. Alexander’s competing bill (S. 2084) because:

 

  • S. 2084 would create a new “grandfather” clause allowing state and local governments to tax certain types of Internet access, such as DSL, for another two years.
  • Consumers will pay more for Internet access under S. 2084 because the ISP’s will be forced to absorb the tax or raise the price they charge the consumer for Internet access services.
  • By taxing certain methods of Internet access, S. 2084 would thwart broadband competition by hindering investment and deployment of broadband services.

 

Making the moratorium on Internet access taxes permanent would ensure technological neutrality – so consumers are protected by the moratorium no matter what technology they use to access the Internet. S. 150 will further support the goal of keeping the Internet affordable to all Americans. The Internet has over 150 million users today, and is responsible for contributing to the free flow of information, expanding consumer choice, and reviving the information technology industry.

 

Prohibiting taxation that stifles these benefits is a goal worthy of your support. Please vote to protect all consumers from burdensome taxes by making permanent the prohibition on Internet taxes.

 

If you have any questions or concerns please do not hesitate to contact me at (202) 393-1099 or email Tim.Hugo@CapNet.org.

 

With kindest regards,

 

Tim Hugo

President

CapNet