Time's Up on the Old State Tax Systems

Governing.com recently published an article entitled Growth & Taxes: Why Outdated State Tax Systems Undercut Economic Vitality, and What States Can Do About It. This article "hits the nail on the head" in concluding that most of today's state tax systems have not only failed to keep up with technology but hinder our local and national economies. Unfortunately, many state tax systems are still based on outdated views of technology which are a disservice to a state's consumers and economy. In fact, the typical wireless consumer now faces over 15% in taxes on their wireless service, more than twice the average tax rate for other goods and services. It doesn't make sense to discourage use of a service that is invaluable to citizens from all walks of life, particularly those on limited incomes, but that's exactly what happens with such exorbitant and arbitrary taxes and fees.

As Governing.com put it:

A reliable, high-quality and affordable telecommunications system is essential to the economic competitiveness of states – to say nothing of the nation. And yet, these systems are subject to very high taxation rates in a number of states – by a tax approach set when the industry, dominated by one telephone company, was highly regulated. The result is a damper on the telecom industry.

These taxing issues are germane not only to the economic vitality of a state but to its compact with taxpayers – be they individuals or businesses. The way in which revenues are raised – the fairness and transparency – is fundamental to the trust constituents have in their government. 

Don't you think it's about time state's take a fresh look at their tax systems? I do. For more information on the level of consumer taxes on wireless services in your state go to MyWireless.org.