Sens. Ron Wyden (D-OR) and Pat Toomey (R-PA) this week introduced the Wireless Tax Fairness Act (S. 1235), a bill that would impose a moratorium on state and local taxes on cell phones and other wireless services. The house version of the legislation (H.R. 2309) was introduced by Reps. Zoe Lofgren (D-CA) and Trent Franks (R-AZ) earlier this month.
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“Wireless taxes on consumer goods such as cell phones, tablets, and other devices are at an all-time high and are hindering their expansion to consumers. It is not often that Congress has better sense than states and localities when it comes to taxation but this is one of those instances.
“Wireless taxes have been rising faster than on most other goods and it is about time that we hit the stop button on these discriminatory taxes before they undercut innovation and growth of this industry.”
“High wireless taxes drag down both consumers and the wireless market, deterring innovation and infrastructure improvements, while disproportionately affecting minority and low-income populations. The continuous addition of new wireless taxes by governments across the country risks harming economic growth in the technology and communications industries, one of the few areas of the economy still growing. Placing a moratorium on these discriminatory tax hikes would benefit both the economy and consumers.”
“I’m glad to see this bill because states and local governments have been piling taxes on these services with absolutely no good reason to do so. In some states the tax rates on these services top 20 percent. Nationally, the average tax rate is more than double the tax rates on other goods and services. It’s got to stop.”
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