On Friday, December 18, 2015, Congress passed and President Obama signed the $1.1 trillion funding bill that will keep the federal government running until September 30, 2016. This legislation includes a nine-month extension of the Internet Tax Freedom Act (ITFA). If Congress had failed to extend the ITFA, states and municipalities would have had the ability to tax Internet access.
Despite the good news of the nine-month extension, it is very important that the Senate pass the Permanent Internet Tax Freedom Act in the next nine months to avoid another close call with the ITFA expiration date at the end of September 2016. Congress has had to extend the ITFA a handful of times in the past two years. The House already passed its version of the bill back in June 2015. (See my blog from last week.)Permanently banning taxes on Internet access would help keep the Internet affordable for all Americans. And it would lead to additional market-driven innovation, content choices, and economic growth.