The Leaflet – Wireless Taxes for Water Skiing

Published February 6, 2014

Wireless Taxes for Water Skiing

For years state wireless and cell phone taxes have grown steadily without raising any significant alarm. This is surprising given that wireless taxes in many states are up to three times higher than the state sales tax. These discriminatory and excessive tax rates unduly burden low- and middle-income families that already are being pinched by high tax rates in other areas. Wireless taxes also discourage investment by cellular companies into new technologies and new markets. And yet, West Virginia has just proposed increasing wireless taxes as a way to pay for promoting skiing and white water rafting in the state.

Federal lawmakers are taking steps towards ending wireless tax increases. The Wireless Tax Fairness Act, introduced in June of last year, has gained bipartisan support. Its adoption would slow down arbitrary wireless tax increases that regressively target those who can least afford to pay by freezing any new state and local cell phone taxes for five years. According to a recent MyWireless.org National Tax Survey, nearly two-thirds (61%) of adult wireless consumers support such a moratorium.

As John Nothdurft, director of government relations at The Heartland Institute, has stated in the past, new discriminatory cell phone taxes “will hinder the growth of an industry that is on the front lines of innovation and job creation.”

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