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House passes bill to freeze additional cell taxes

Posted: , by Charlene S.

House passes bill to freeze additional cell taxes
If you’re like most people, you’ve opened up your cell phone bill and wondered how your $69.99 a month plan always seems to end up around the $80 mark or higher. The answer is taxes.

Back in February, TaxFoundation.org determined that the average U.S. wireless customer pays 16.26% in taxes and fees. Of that, 11.21% is from the state and local municipalities. Some states, such as Nebraska, Washington, New York, Florida, and Illinois, average between 20-24% in combined federal, state, and local taxes. This data has causes some to point out that in many states you pay more taxes on wireless than you do on goods such as cigarettes and alcohol.

On Tuesday, the US House of Representatives passed the Wireless Tax Fairness Act of 2011, which will implement a freeze on raising or creating new taxes for the next 5 years. According to the bill, a study will also be conducted in that time to determine how, and to what extent, local and state taxes impact mobile services costs for consumers.

The Cellular Telecommunications Industry Association, or CTIA, who was a large supporter of the bill, released a statement stating, “On behalf of the 300 million wireless customers in the U.S., CTIA applauds the Wireless Tax Fairness Act’s lead sponsors, Representatives Lofgren and Franks, who worked tirelessly to get the bill approved in the House. Today’s vote is a crucial step toward providing wireless subscribers with some much needed relief by putting a five-year freeze on new, discriminatory taxes and fees on their monthly bills. In light of the challenging economy, we hope the U.S. Senate moves swiftly to pass the companion bill.

The bill still must make it through the Senate, then to President Obama before being enacted into a law, but this is one step toward offering some relief to an American public with already tightened wallets.

source: The Library of Congress via Phone Scoop & Tax Foundation

12 Comments
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posted on 02 Nov 2011, 16:41 6

1. cposey (Posts: 25; Member since: 30 Apr 2011)


Bout damn time

posted on 02 Nov 2011, 16:42 2

2. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


I totally agree!!!!!!!!!!

posted on 02 Nov 2011, 16:54 4

3. SJisaBitch (Posts: 8; Member since: 02 Nov 2011)


Don't worry those greedy SOB will find some new way to tax and rob

posted on 02 Nov 2011, 16:58 1

4. jdrevolution (Posts: 87; Member since: 07 Oct 2011)


Now let's hope the senate and the president agree with the house.

posted on 02 Nov 2011, 17:11 4

5. remixfa (Posts: 13902; Member since: 19 Dec 2008)


democrats agree with republicans on tax freezing? I hope so... but concidering obama and the dems are pushing for more taxes, i doubt it.

posted on 02 Nov 2011, 18:20 1

8. iwebdroidberry7 (Posts: 230; Member since: 17 Jan 2011)


And the republicans are not?? Righhhttt.

posted on 03 Nov 2011, 09:42 2

11. remixfa (Posts: 13902; Member since: 19 Dec 2008)


pushing for more taxes? can you tell me how many bills the republicans are pushing to raise taxes? Everything I see, they are pushing to reduce taxes on EVERYONE to keep money in our pockets and spur job growth.. something that the democrat's drunken sailor spending "stimulous" spending has yet to do..
exept put us in a ton of debt... and have new examples every day about how corrupt obama is and how he gives huge swaths of tax payer money to his friends.

Also, right now the house is controlled by the republicans... which is the place this bill just came from. What exactly are you talking about?

posted on 02 Nov 2011, 17:12 1

6. warlockz (Posts: 156; Member since: 10 Oct 2011)


5 years that's it! They should reduce taxes or just get rid of some of it like they did with the estates and gift tax in 2010

posted on 02 Nov 2011, 18:14

7. codymws (Posts: 236; Member since: 17 Jun 2010)


How on earth is a $69.99 bill supposed to end up at $80? I just got my Verizon statement today and I only have to pay $2.94 in taxes on my $150 bill.

posted on 02 Nov 2011, 19:13 1

9. Dr.Phil (Posts: 821; Member since: 14 Feb 2011)


Depends on where you live.

posted on 03 Nov 2011, 03:15 1

10. pyckvi (Posts: 48; Member since: 19 Dec 2010)


Totally agree!
When i was with tmobile my monthly bill constantly jumped around. I had a plan for 150 without tax and with tax it always came out to around 190 and would always jump up and down a few dollars each month. These basterds try to milk you as much as they can. I hope this passes

posted on 03 Nov 2011, 14:51 1

12. firelightx (Posts: 71; Member since: 13 Oct 2011)


It's only a freeze not actually lowering. I'm curious to where this money goes to. I don't mind paying what I am now on my bill ($20 tax). Depending on how this money is spent is a larger issue for me not so much how much I'm spending. Taxes should stay where they're at, not raised, not lowered. Yes increase the rich if it's needed but I'm pretty sure it's not.

I'm for this because it's a freeze, something we the people and the government can really use.

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