NCPA - National Center for Policy Analysis


November 24, 2004

Without an extension of the Internet tax moratorium, consumers could expect to see double-digit increases on their monthly Internet access bills, according to the Wall Street Journal.

The ban on taxing Internet access expired last November, but was extended for another year, benefiting some 60 million households who are connected to the Internet. The tax moratorium was extended again this year until 2007, but the ban should simply be made permanent, says the Journal, because Internet taxes would drag down the economy:

  • The Internet increases the productivity of the workforce, adding about $50 billion annually to gross domestic product (GDP).
  • Internet taxes would discourage usage and dampen capital investment.

Senators Chris Cox of California and Ron Wyden of Oregon have worked to keep Internet taxes at bay...for now, says the Journal.

Source: Editorial, "Web Tax Holiday," Wall Street Journal, November 19, 2004.

For WSJ text (subscription required):,,SB110082815875778942,00.html


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