Cell Phone Tax Moratorium Introduced In Congress

by Mike Godfrey, Tax-News.com, Washington

17 April 2008

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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