Bill Would Stall Cell Phone Taxes
Legislation calls for a five-year ban on additional state and local wireless taxes.Silicon Valley lawmaker Zoe Lofgren, D-Calif., marked tax week with the introduction of federal legislation to impose a five-year moratorium on any additional state or local wireless taxes. The bill would not apply to taxes or fees aimed at subsidizing emergency 911 services. On average, consumers currently pay 15.19 percent in federal, state and local taxes on their cell phone bills. According to a new CTIA study examining taxation trends, Americans pay 7.1 percent in taxes on goods and services other than wireless services. Between 2003 and 2007, taxes and fees on wireless service increased four times faster than taxes on other goods and services.
"The Cell Tax Fairness Act will help ensure that consumers make choices about communications technology based on the merits of that technology, rather than on the rate of taxation," Lofgren said in a statement. "[The bill] does not take away any existing revenue for state or local governments, it simply calls for a period of tax stabilization that will help further innovation and access in the wireless world."