CTIA–The Wireless Association® Calls for High-Tech Tax Moratorium as Filing Day Approaches
April 16, 2007
WASHINGTON, DC – CTIA-The Wireless Association® President and CEO Steve Largent will use this year’s tax-filing deadline to call for moratoriums on new wireless and Internet taxes. Bi-partisan legislation to put such moratoriums in-place has been introduced in both Houses of Congress and Largent believes it’s an idea whose time has come.
“There is no logical or defensible reason why the average wireless user in America is paying more than 14% of his or her monthly bill in taxes and fees,” said Largent. “In fact, this discriminatory level of taxation is illogical and counterproductive to our nation’s goal of providing high-speed broadband services to all Americans.”
Last year, the Internal Revenue Service (IRS) stopped assessment and collection on the 3% Federal Excise Tax (FET) on bundled services, including wireless, which was first instituted in 1898 to help finance the Spanish American War. At the time, the average wireless tax burden had climbed above 17% and the IRS’ action provided wireless users across America with a much needed tax-break.
Keeping wireless and other high-tech taxes at a fair and reasonable level in America is critical to growing the economy and making the workforce more productive, efficient and informed. In February, a report issued by the Federal Communications Commission (FCC) showed that nearly 60% of all new high-speed lines in America were wireless. With competitive wireless broadband services now growing faster than DSL and cable combined, Largent believes it is important to remove any type of discriminatory tax burden.
“Through their purchasing power, broadband consumers are demonstrating a want and need for mobility,” continued Largent. “We should do everything in our power to encourage broadband adoption and that means keeping wireless service free of discriminatory taxation and the Internet free of taxation – period.“
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CTIA is the international association for the wireless telecommunications industry,
representing carriers, manufacturers and wireless Internet providers.
www.ctia.org