From: Heartland Institute: The Government Relations Team
To: Scott Jenkins,
Subject: The Permanent Internet Tax Freedom Act
Date: Thu Jun 26 19:05:04 MDT 2014


The Permanent Internet Tax Freedom Act


Last week, the House Judiciary Committee voted to approve the Permanent Internet Tax Freedom Act (PITFA), which would make permanent the current moratorium on state and local taxation of Internet access and on discriminatory taxes on emails and other data. The existing moratorium on taxation of Internet access is set to expire on November 1. PITFA also would end the “grandfather clause” that allows seven states to tax Internet access.


The Internet economy is projected to account for 5.4 percent of U.S. GDP by 2016 and a similarly sized share of the G-20 economy. “Proponents of the moratorium have argued that making the Internet access tax moratorium permanent is a necessary step in promoting wider access to the Internet while keeping the cost of access down and eliminating discriminatory taxes,” said Matthew Glans, senior policy analyst at The Heartland Institute.


“People need to understand this bill would prohibit taxes on access to the Internet, not taxes on online purchases. The bill deserves strong support because businesses and individuals of all income levels rely on the Internet for so many important activities,” Steve Stanek, a research fellow at The Heartland Institute, said. He notes “taxing Internet access would make the Internet less affordable, which would make no sense to do.”


Attention state elected officials: There are a limited number of travel scholarships to Heartland’s Emerging Issues Forum still available. Contact Alex Monahan at 312/377-4000 or at for more information.


Bill Extending Ban on Internet Access Taxes Advances in House


In this Heartlander digital magazine article, Matthew Glans covers the pending expiration of the Internet access tax moratorium and new legislation moving through Congress that would permanently extend the moratorium. “The bill, titled the Permanent Internet Tax Freedom Act (PITFA), was written by Judiciary Chairman Bob Goodlatte (R-VA) and co-sponsored by 138 Republicans and 76 Democrats. PITFA would make the ITFA moratorium permanent and end a ‘grandfather clause’ that allows seven states to tax Internet access. The seven states enacted Internet access taxes before the moratorium was put in place.” Read More


Should Harrisburg Become Involved in Highmark/UPMC Dispute?


Matthew Glans writes in the Heartlander digital magazine about the Pennsylvania General Assembly’s consideration of legislation that may force a major health care provider to sign an access contract with an insurer that has become a direct competitor. Glans examines the conflict between health insurer Highmark and the University of Pittsburgh Medical Center (UPMC) and how legislation forcing UPMC into a contract with Highmark could affect the Western Pennsylvania health care market. Read More
Budget & Tax
In this Research & Commentary, Senior Policy Analyst Matthew Glans examines the transportation funding plan recently proposed by the Obama Administration. The $302 billion plan, called the Generating Renewal, Opportunity, and Work with Accelerated Mobility, Efficiency, and Rebuilding of Infrastructure and Communities throughout America (GROW AMERICA) Act, is intended to raise funding for transportation infrastructure including bridges, highways, and rails. Glans notes, however, “The proposal is expensive and funded by a one-time tax scheme that does little to improve the nation’s economic competitiveness.” The federal government should stay out of problems that should be solved by the states.   Read More
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From Our Free-Market Friends
Thirteen states have passed temporary income or sales tax increases since December 2007. More often than not, those states allowed the tax hikes to sunset or expire on time rather than extending higher rates. Illinois Policy Institute calls the bluff on "temporary" tax hikes. Read the report on whether or not your state has allowed temporary tax hikes to sunset or not.




The June issue of School Reform News reports the lengths to which parents will go to get their kids into good schools. “My parents worked around the clock to put me and my three older sisters through Catholic education,” said Kara Kerwin, president of the Center for Education Reform. Other parents camp out in order to be first in line to register their kids at a better school ... and some risk jail.



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The Heartland Institute is a 30-year-old national non-profit organization dedicated to discovering, developing, and promoting  free-market solutions to economic and social problems.


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