CTIA is the International Association for the Wireless Telecommunications Industry, Dedicated to Expanding the Wireless Frontier
Saturday, November 7, 2009

Taxes - The One Real Drawback of Spring

I choose to look at it this way...in the summertime, it can get really hot.  In the fall, many of us have to rake leaves.  The winter can be dark and cold, and in the springtime, well in the springtime we all have to pay the Taxman.  Two steps forward and one big step back, especially when it comes to wireless users and the monthly taxes we pay.   As I've posted here before, the average wireless user in America pays more than 15% of his or her monthly wireless bill in government-imposed taxes and fees.  This is more than twice the amount of taxation placed on other goods and services.  
 
The Omaha World-Herald recently ran a front-page story in their Sunday edition drawing attention to this painful truth.  The St. Petersburg Times, Providence Journal and the Salt Lake Tribune have also published recent articles about the very high tax burden wireless users in those states are forced to shoulder.
 
While it's not unusual for public policy trends of decades past to haunt modern innovations of today and tomorrow, it is unusual that something hasn't yet been done about this particular policy anachronism.  Today roughly 84% of the nation uses a wireless device.   Consumers are increasingly turning to wireless for their broadband needs and wireless companies are churning out devices that allow us to perform desk-top computer functions right in the palm of our hand.   Placing sin-tax level surcharges on a service that could help America achieve its broadband penetration goal makes no sense what-so-ever.   CTIA Chairman and Verizon Wireless President and CEO Lowell McAdam summed it up best; “The wireless sector of the technology industry continues to be an important driver for growth in our nation’s economy.  Americans don’t just talk on their wireless phones anymore; they access the Internet, get information, pay bills and use wireless to be more productive at work and other every day activities. With about 15 percent of each customer’s monthly bill already going to taxes and fees, increasing discriminatory and unfair taxes on wireless customers presents a clear and present danger to future growth.  Policymakers should roll back taxes on wireless customers.”
 
And on this beautiful spring afternoon there is light at the end of the tunnel and it comes in the form of bi-partisan legislation sponsored by U.S. Representatives Zoe Lofgren (D-CA) and Chris Cannon (R-UT).   Their bill - The Cell Tax Fairness Act - grants consumers a 5-year "tax-holiday" from discriminatory state and local wireless taxes and it was introduced today in the U.S. House of Representatives.   In her press statement, Congresswoman Zoe Lofgren said;  “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.”       
 
I don't know about you, but this is best news I've received on Tax Day in many years.  Let's pass it!
  

Comments (Comment Moderation is enabled. Your comment will not appear until approved.)