The Internet is openly defined as an “information service” and not a telecommunications service, and because of that state and local governments can’t apply taxes or fees to the services. The House majority, however, would like to change that.
This is looking at phone bills, Internet bills, cable, streaming, and other services. The typical American will spend upwards of $600 extra per year just to have the Internet if this goes through.
Introduced by Speaker Pelosi, the “Save the Internet Act” would address data rates and introduce the tax hike onto that portion as well, not just “Internet costs” as some would define as their Internet/cable provider.
This would essentially be more than double taxation, but instead taxing every American multiple times for multiple products, but the same tax by definition. The average American will pay this tax 4x over per month based on each service they have.
In 2016, Congress passed an act that prevented the taxation of the Internet at all, whatsoever. Simply changing the classification of the Internet, or its definition to a “telecommunications service” introduces this 20% tax across the board.