With the average consumer facing a wireless tax of 16.3 percent, this week Congress will consider a bill to freeze excessive and discriminatory taxes on cell phone and wireless services. The Wireless Tax Fairness Act would put a five-year moratorium on state and local efforts to raise wireless taxes.
Today, state and local wireless taxes are nearly 4 percent higher than the average sales tax rate. Taxes hit as high as 23 percent in Nebraska, 26.8 percent in Baltimore, and 20.4 percent in New York City. High and discriminatory tax policy doesn’t just skew consumer decisions in the otherwise free-market. By raising the cost of owning a phone or wireless Internet connection, these state and local tax laws put a significant burden on Internet adoption and expansion.
The Wireless Tax Fairness Act was introduced by Reps. Zoe Lofgren (D-CA) and Trent Franks (R-AZ), and Sens. Ron Wyden (D-OR) and Olympia Snowe (R-ME). With a bipartisan list of 144 cosponsors already, it will get a hearing this Tuesday in the House Judiciary Subcommittee on Courts, Commercial and Administrative Law.
CLICK HERE to write your lawmakers and them to freeze your wireless taxes.