The U.S. House of Representatives this evening will vote on the Wireless Tax Fairness Act, which would place a five-year moratorium on new taxes on mobile phones and other wireless items. The measure enjoys broad bipartisan support and is expected to pass.
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“There is no legitimate reason that the combined tax rate on mobile devices should be twice as high as the tax on other goods and services. Protecting taxpayers from these discriminatory taxes for the next five years will help foster growth in an industry that is on the front lines of innovation and job creation.
“In particular, lower-income consumers will reap the biggest benefits and will be able to enjoy more access to wireless devices.”
“A moratorium on wireless taxes is welcome, but a rollback would’ve been a more meaningful method of putting money back into the pockets of consumers. If the national average state and local wireless tax is twice the national average state sales tax, it would make sense to place an 8 percent or even lower cap on the amount of fees and taxes charged.”
“I’m glad there appears to be broad bipartisan support for this bill in Congress but am dismayed that some local government officials oppose it. Wireless services are already heavily taxed. If state and local officials want to keep piling taxes onto wireless service, the result will be fewer people using wireless service or people spending less money on other things to cover the higher wireless taxes.”
“It’s good that Congress recognizes that the taxes states are imposing on wireless service are exorbitant and unfair. These taxes hurt our most economically vulnerable individuals and small businesses. But states have the right to bleed their citizens dry if they want. If this bill becomes law, states and local governments will just take the money out of another pocket of the same taxpayers. It will benefit the wireless industry but no one else.”
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