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CTIA-The Wireless Association Statement on the Introduction of the Wireless Tax Fairness Act of 2011

After a bipartisan group of more than 140 co-sponsors in the U.S. Senate and U.S. House of Representatives introduced the Wireless Tax Fairness Act of 2011, I released the following statement:

“On behalf of the wireless industry, and more importantly wireless consumers, we appreciate the support of the more than 140 co-sponsors, led by Representatives Lofgren and Franks and Senators Wyden and Snowe, to put a five-year moratorium on the discriminatory taxes and fees levied on our consumers. This freeze would not take away any existing revenue for state and local governments, but would provide time so the localities can reform their existing tax systems.

“In light of today’s challenging economic conditions, it is hard to understand why the average wireless consumer is being charged more than 16 percent in taxes and fees when other taxable goods and services are only 7.4 percent. When you add the fact that policymakers are looking for ways to make affordable broadband accessible for all Americans, it’s incomprehensible why 47 states and the District of Columbia charge their wireless consumers a rate that exceeds the general rates for other taxable goods and services.

“CTIA and our member companies will continue to try to get this important bill passed by Congress so our wireless consumers receive some financial relief in this difficult economy.”

5 Responses to “CTIA-The Wireless Association Statement on the Introduction of the Wireless Tax Fairness Act of 2011” Leave a reply ›

  • avatar

    Kudos to those who put the Wireless Tax Fairness Act into effect. 16% has always been too high, and as you said, there's no need for such a steep tax price during such an economic period.

  • avatar

    I know this was a public press release kind of thing so certain language, so I understand why it's done. But to be clear: it's not at all hard to understand why wireless purchases are being milked for such a high tax rate. It's been an incredible growth industry, and will continue to be so, despite economic conditions. States looking for easy ways to cash-grab saw it as a prime target.

    I don't condone it nor do I think it's right. It's just very easy to understand how it came to be.

  • avatar

    Yahoo!!! It's about time that the States stop bleeding the providers and customers. Some of these taxes were originally meant to upgrade 911 systems and are now an ongoing cash cow. If they have the systems up to date, how about a refund?

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