Senators introduce bill banning wireless taxes

Two senators have introduced legislation that would put a five-year moratorium on wireless and cell phone tax increases.

The Mobile Wireless Tax Fairness Act of 2009, introduced by Sen. Ron Wyden (D-Ore.) and Sen. Olympia Snowe (R-Me.), would prohibit federal, state and local tax increases on wireless services and infrastructure. The bill has drawn support from Sen. John McCain (R-Ariz.), who along with other supporters of the bill, contends that it will help consumers and that wireless companies have been hit unfairly with taxes.

The average tax rate for goods and services is 7.07 percent, but federal, state and local taxes make up 15.9 percent of the average wireless bill, according to figures from Phoenix Business Journal. Between January 2003 and January 2007, the effective tax rate on wireless services increased four times faster than the rate for other taxable goods.

"It is very troubling that wireless consumers have been taxed four times more than other taxable goods and services over an almost four-year period," CTIA President Steve Largent said in a statement. "The Wyden-Snowe bill will protect consumers from new discriminatory taxes and fees while preserving existing revenue for states and localities."

For more:
- see this article

Related Articles:
Obama's budget calls for new wireless spectrum fees
Senate looks to scale back wireless tax credits for broadband
Senate considers wireless tax credits for broadband expansion

Suggested Articles

The FCC plans changes to its Lifeline program, a federal initiative meant to lower the monthly cost of phone and internet for low-income individuals.

New research, again based off Wehe test results, indicates wireless carriers are throttling video content, regardless of location or time of day, and that…

In their latest round of comments to the FCC, both users and would-be users of the C-Band argued whether fiber is the best alternative for delivering the types…