EDITORIAL: Congress must make Internet service permanently tax-free

The Internet is the biggest platform for innovation and creativity the world has ever seen. It has revolutionized the way we communicate, research, entertain ourselves and do business. These changes have come about so quickly because, among other reasons, Internet service has been free of the taxation that boosts consumer costs for other forms of telecommunications.

Back in 1998, Congress recognized the importance of an unfettered Internet and passed the temporary, bipartisan Internet Tax Freedom Act, which bans taxes on Internet access for consumers. The legislation has been extended five times — sometimes retroactively or right before expiration — and, unless Congress acts again, the moratorium will expire Oct. 1.

That can't be allowed to happen. The last thing Americans need is more taxes, particularly on their Internet service when Washington is already doing all it can to damage the Internet through "net neutrality" and other initiatives.

If Washington, states and localities were able to tax Internet service the same way they tax cellphone plans — typically at a combined rate of at least 17 percent — families and small businesses would notice the hit to their finances. Governments at every level have managed to continue growing despite their inability to tax Internet service for two decades. Why would we want them to start now? It's not like they need the money to regulate Internet service providers.

Taxing Internet access would hamper the spread of broadband to rural areas, as well. Geography shouldn't prevent Americans from taking advantage of all the benefits the Internet has to offer.

Thankfully, for these reasons and others, the House of Representatives has passed the common-sense Permanent Internet Tax Freedom Act. If the Senate follows suit and passes a stand-alone bill — separate from the misleadingly named Marketplace Fairness Act, which would require Internet retailers to collect sales taxes on all purchases — the feds, states and local governments would be prevented from piling the same taxes people see on their telephone and cellphone bills onto their Internet bills.

Americans have benefited greatly from having no tax burden on the Internet. Congress should make Internet service tax-free for good before Oct. 1.