Wireless Tax Fairness Act going to get full vote by the House

Wireless Tax Fairness Act going to get full vote by the House
Yesterday, the House Judiciary Committee voted to send the Wireless Tax Fairness Act to the full House for a vote. The bill would freeze for 5 years current taxes on mobile devices that use a service plan, such as cell phones and tablets. Currently, mobile consumers in the U.S. pay an average $92 a year in taxes which works out to a rate of 16.3%-the highest rate ever. That is up from the 14.1% rate seen in 2006. This info comes from research organization, the Heartland Institute.

This is one cause that finds mobile carriers hand in hand with consumers. After all, higher taxes can be a deterrent to purchasing a cell phone plan. Congresswoman Zoe Lofgren (D-California) says that, "Higher tax rates in the wireless space deter investments." The Congresswoman is a co-author of the bill. According to the CTIA, while the tax rate accounts for 16.3% of cell phone bills, it comes to only 7.4% for other services and goods. The industry trade group says that cellular customers are being targeted because they are "good bill payers."

Five states have tax rates on cellular plans that are higher than 20% including Florida, Illinois and Washington. In some individual cities, the rates are even higher. Baltimore, for example, levies a 27% tax on wireless service while in the Big, ahem, Apple, the tax rate is 20%. The bill is not a panacea for cell phone users as it addresses only state and local taxes. The federal "universal service fund" which currently is about 5% of the average bill, is not affected.

The problem is that local tills are near empty with the economy doing so poorly and the shortfall needs to be made up somehow. The cell phone industry has so far defied the gravity of a poor economy as many still are able to purchase the latest smartphone at launch. The CTIA has been lobbying for passage of the bill, but no one can say for certain how the voting will go. If the bill does make it to law, a very hot industry has the potential to become even hotter.

source: SmartMoney



1. remixfa

Posts: 14605; Member since: Dec 19, 2008

wooo hooo!!!! fl nearly 22% sales tax is rediculous.. lol

2. snowgator

Posts: 3621; Member since: Jan 19, 2011

Here in Illnois, I shudder at all the tax rate stories. Pick one, and we are near the top- gasoline, utilities, income, housing, and yes- wireless. Any help would be welcome.

3. remixfa

Posts: 14605; Member since: Dec 19, 2008

thats why its part of the rust belt. liberals and unions have ruined that whole area.

4. remixfa

Posts: 14605; Member since: Dec 19, 2008

at least here in FL u can kind of justify it since we dont pay any state taxes or a bunch of the other crap that other states pay.

5. snowgator

Posts: 3621; Member since: Jan 19, 2011

I would argue, but living here ( I have kids from a divorce, can not move out of state without giving up custody) and having grown up in Florida (Fort Myers, in the 1980's) I can't. The sad truth is that it is the truth. Our Governor won election on a PROMISE to raise personal taxes. Our last two previous Gov are in Jail or going, and like 5 of the last 7 or eight have been convicted of something. It is painful to watch....

6. The_Miz

Posts: 1496; Member since: Apr 06, 2011

tell me about it. that's why Conservatism rocks and Ronald Regan is the greatest President ever.

7. Smoothiii unregistered

Except, Ronald Reagan raised taxes in his 2nd term because the debt had tripled under him to 3 trillion dollars. and his deregulation of the banking industry, specifically the savings and loan, led to a 165 billion dollar bailout in 1989 uner George Bush sr., who also had to raise taxes because of the debt he inherited from Reagan. Both Republicans, Democrats alike all have added plenty of debt. Conservatives and Liberals only listen to sides instead of spending time double and triple checking facts. Google- Reagans Deficit and double check the source to ensure accuracy. And both sides do well when they work together and put politics aside.

8. downphoenix

Posts: 3165; Member since: Jun 19, 2010

why dont they worry about other stuff like reaching an agreement on the debt ceiling so our country doesnt come crashing down? Ill suffer through 15-20% tax on my phone if you can manage that.

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