Senators look to extend ban on Internet taxes

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The Internet Tax Freedom Act bans taxes on Internet access and Internet-only services like email, but it does not prohibit sales taxes on online purchases. Sen. Dick Durbin (D-Ill.) and others are pushing legislation that would allow states to tax online purchases from other states.

“E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped,” Ayotte said in a statement. “This legislation will provide certainty to the marketplace, helping the Internet continue to be a driving force for jobs and growth.”

Heller said the government should not penalize people for buying Internet access.

"The Internet Tax Freedom Act will ensure a longstanding federal policy that prevents the government from raising taxes and preserves the Internet as a tool for education and innovation," he said.

Ayotte and Heller are members of the Senate Commerce, Science and Transportation Committee, which has jurisdiction over Internet policy.