Cell Phone Tax Moratorium Introduced In Congress
US Representative Zoe Lofgren (D-Calif.), has introduced bipartisan legislation
which provides for a 5-year moratorium on any new discriminatory wireless tax
or fee. According to Lofgren, the typical consumer in the United States already pays
15.19% in federal, state, and local taxes on their cell phone bill, compared
to 7.07% for most other taxable goods and services. However, she pointed out
that between January 2003 and July 2007, the effective rate of taxation on wireless
service increased four times faster than the rate for other taxable goods and
services. Commenting on the Cell Tax Fairness Act, which was introduced into the House
of Representatives on 15th April, Lofgren argued that the legislation "will
help ensure that consumers make choices about communications technology based
on the merits of that technology, rather than on the rate of taxation". She added that the measure would not have any impact on current state and local
taxes on wireless service. “The Cell Tax Fairness Act does not take away any existing revenue for
state or local governments, it simply calls for a period of tax stabilization
that will help further innovation and access in the wireless world," she
concluded. .
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