US Internet Tax Will Cost 15 Billion

October 10, 2014 Taxation in USA

WASHINGTON D.C. – If the US Senate does not pass the Permanent Internet Freedom Act, Americans will pay nearly USD 15 billion per year just to access internet.

If the currently active ban on taxes for internet access in the USA is allowed to lapse later this year, as is currently scheduled, the total cost of newly arising taxes could be as much as USD 14.7 billion per year, according to information in a new report issued on October 8th by the independent policy institute American Action Forum.

Currently the Internet Tax Freedom Act prohibits the implementation of internet access taxes by local and state governments in the USA, however, the Act is set to expire in December this year.

The Act may be replaced by the Permanent Internet Freedom Act, which has won approval in the House of Representatives, but still needs to be approved in the Senate before being implemented to permanently ban taxes on internet access.

If the new Act is not approved, and state and local governments in the USA begin to tax internet access at the same levels as mobile communication, the total cost to consumers may be as high as USD 10 billion, while the cost to businesses will be USD 4.7 billion.

According to the author of the study Will Rinehart “…new taxes would induce consumers to downgrade their service, putting the brakes on quickly rising average speeds and placing downward pressure on investment.”

Photo By: photosteve101

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