OP-ED: Alexander-Carper Internet Tax Bill Protects Local Authority

This coming week, Congress will consider two vastly differentapproaches to local revenue authority in the area of Internet taxes.One is an important step forward in the right direction. The otherwould be a nightmare for America's cities, towns and consumers.

The stakes in this issue are enormous and far-reaching.

The step in the right direction is offered by Sen. Lamar Alexander(R-Tenn.) and Sen. Thomas Carper (D-Del.). Their bill, the InternetAccess Tax Ban Extension and Improvement Act (S. 2084), wouldpreserve local authority to collect existing, legally due taxes andit would help clarify Internet tax issues. The National League ofCities supports the Alexander-Carper bill.

The wrong approach is the "Internet Tax Non-Discrimination Act"(S. 150), which would strip away local authority to collect vitalrevenue and would cost America's cities and towns billions of dollarsin lost revenue.

S. 150 would deny local authority to collect a range of legallydue taxes and threaten as much as $9 billion in local revenue thatfunds police officers, teachers and other essential local servicesand infrastructure in cities and towns across America.

By redefining "Internet access," this bill would squash local andstate authority to collect current gross receipts taxes, right-of-way fees, and other existing taxes on telecommunications services.

Not only would the bill trample local revenue authority, it dishesout a multi-billion dollar tax break to the telecommunicationsindustry -- at the expense of local and state taxpayers, smallbusinesses and working families.

The net impact of S. 150? Lost revenues, cuts to services andadditional fiscal burdens for local governments.

The National League of Cities strongly opposes S. 150 and urgesyou to let your members of Congress know that the bill is bad news.The bill is likely to come up for consideration on the Senate floorfor debate early this week.

The right approach is the Alexander-Carper bill, S. 2084, whichwill be offered as a substitute for S. 150.

The Alexander-Carper bill defines Internet access in a way thatpreserves the ability of local and state governments to continue tocollect telecommunications taxes and franchise fees. Their bill wouldcreate parity among all types of Internet platforms, whether phonelines, cable modems or digital subscriber lines (DSL).

Let's be clear. Our position has never been an attempt to taxemail or impose new taxes on the Internet. Instead, we are simplyinsisting that local revenue authority for America's cities and townsnot be eroded by an unnecessary law that siphons money out of localcoffers and pumps it directly into the telecommunications industry.

On the important issue of protecting local revenue streams tosupport essential public services, the Alexander-Carper bill is thebest solution for America's cities, towns and consumers.

------

Working to strengthen America through strong cities and towns, theNational League of Cities is the oldest and largest nationalorganization for American cities. NLC serves as a resource andadvocate for 18,000 cities, towns and villages, which collectivelyserve 225 million people. Visit http://www.nlc.org.

http://www.usnewswire.com