House passes bill to freeze additional cell taxes

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

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12 Comments

1. cposey

Posts: 25; Member since: Apr 30, 2011

Bout damn time

2. Phoneguy007

Posts: 218; Member since: Jun 02, 2011

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

3. SJisaBitch

Posts: 8; Member since: Nov 02, 2011

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

4. jdrevolution

Posts: 87; Member since: Oct 07, 2011

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

5. remixfa

Posts: 14605; Member since: Dec 19, 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.

8. iwebdroidberry7

Posts: 230; Member since: Jan 17, 2011

And the republicans are not?? Righhhttt.

11. remixfa

Posts: 14605; Member since: Dec 19, 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?

6. warlockz

Posts: 156; Member since: Oct 10, 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

7. codymws

Posts: 237; Member since: Jun 17, 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.

9. Dr.Phil

Posts: 2340; Member since: Feb 14, 2011

Depends on where you live.

10. pyckvi

Posts: 48; Member since: Dec 19, 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

12. firelightx

Posts: 71; Member since: Oct 13, 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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