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Page 5 <br />The White House, House Democrats, and countless immigration advocacy groups continue to <br />pressure House Republicans to move on the issue. However, as previously mentioned, many <br />have speculated that the recent defeat of House Majority Leader Eric Cantor (R -VA) by an anti - <br />immigration candidate will cause the House GOP to avoid the issue until after the mid -term <br />elections and possibly into the new Congress when attention begins to focus on the Presidential <br />elections. <br />Internet Tax Freedom Act <br />First enacted in 1998, the Internet Tax Freedom Act (ITFA) places a moratorium on state and <br />local taxation of internet access. The bill's original intent was to encourage the development of <br />the internet, which at the time was a new technology. Today, however, the legislation serves as <br />little more than a preemption of state and local taxing authority. This is especially true in states <br />like California, where municipalities levy voter - approved utility user taxes (UUTs). <br />The ITFA's current authorization is set to expire on November 1, and there is a push in both the <br />House and Senate for a permanent extension. On June 18, the House Judiciary Committee <br />approved H.R. 3086, the Permanent Internet Tax Freedom Act, sponsored by Chairman Bob <br />Goodlatte (R -VA). The bill passed out of committee with bipartisan support, and HK has learned <br />that it could reach the House floor soon after the July 4 recess. <br />Particularly considering that more and more services are transitioning to broadband, such <br />legislation could seriously jeopardize California cities' UUT revenue streams. HK will continue <br />to work with Senators Feinstein and Boxer as well as the City's House delegation to push for a <br />short-term ITFA reauthorization. <br />25Q -7 <br />