The 362,000-member National Taxpayers Union (NTU) praisedthe U.S. House of Representatives for their recent overwhelming voice vote infavor of H.R. 1002 the Wireless Tax Fairness Act sponsored by RepresentativesZoe Lofgren (D-CA) and Trent Franks (R-AZ). Now NTU is planning a grassrootscampaign to secure Senate passage of the bill which, if it becomes law, wouldplace a five-year moratorium on new state and local taxes that specificallytarget wireless services.
The bipartisan sponsorship of the House legislation,combined with its common sense aim of halting the march of state and localwireless taxes, drew 236 total co-sponsors, including the support of more than 70Democrats in addition to its Republican base. Currently, the typical combined taxbill of 16 percent on wireless is about double the average tax hit of standardconsumer items.
“When it comes to emerging technologies like smartphones,governments have often adopted not-too-smart tax policies,” said NTU ExecutiveVice President Pete Sepp. “The Wireless Tax Fairness Act wisely puts the brakeson this burdensome and economically unproductive habit.”
Just as it supported federal legislation in the mid-1990s toprevent discriminatory state and local taxes on Internet access, NTU hascampaigned for the Wireless Tax Fairness Act since it was first introducedseveral Congresses ago. As an open NTU letter sent to lawmakers just prior tothe H.R. 1002 vote explained, tax burdens on wireless service have steadilycrept up, often taking forms not readily apparent to consumers. But aside fromthe direct harm caused to taxpayers, such policies “have the potential to snuff out future growth and innovation,”the letter explained: “Historically,governments were able to fleece the communications industry because theyseverely limited competition and left customers with few options. Nowtelecommunications is a key driver of the economy that offers a wide range ofservices, including mobile banking and email, with direct ties to increasedproductivity and convenience.”
Sepp said NTU will now focus on passage of Senate companionlegislation (S. 543) sponsored by Sens. Wyden (D-OR) and Snowe (R-ME). “The WirelessTax Fairness Act is proof positive that lawmakers can act in a constructive,bipartisan manner to protect taxpayers and promote economic growth,” heconcluded. “NTU is committed to mobilizing citizens throughout the nation tohelp stop the spiral of higher taxes on wireless phones, and help start thevigorous recovery America needs.”
NTU is a nonpartisan, nonprofit citizenorganization working for lower taxes, smaller government, and economic freedomat all levels. For more information on NTU's work on internet and wireless taxation visit ntu.org.