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Home Press Room CFIF Urges Support for Wireless Tax Fairness Act to Prevent Higher Taxes on Wireless Services
CFIF Urges Support for Wireless Tax Fairness Act to Prevent Higher Taxes on Wireless Services Print
Thursday, July 14 2011

ALEXANDRIA, VA – In a letter sent yesterday to every member of the House Judiciary Committee, the Center for Individual Freedom (“CFIF”) joined with other free market organizations collectively representing millions of American taxpayers to urge support of the Wireless Tax Fairness Act (H.R. 1002 / S.543).

The Wireless Tax Fairness Act would put a five-year freeze on attempts by state and local governments to raise taxes on wireless services.  The legislation is being marked up today by the House Judiciary Committee.

“Across the country, state and local governments are putting a substantial burden on consumers by raising discriminatory taxes on wireless services to fund special interest projects and cover up overspending addictions,” the organizations wrote.   “Today, the average consumer pays upwards of 16 percent in taxes on their wireless bill every month.  In some localities, wireless taxes have skyrocketed to well over 25 percent.

“A federal solution to curbing wireless taxation has become imperative,” continues the letter.  “The mandatory freeze on wireless taxes under H.R. 1002/S. 543 is a pro-consumer, pro-business, anti-tax, and bipartisan solution to this growing problem.”

Americans for Tax Reform (“ATR”) organized the letter.  In addition to ATR and CFIF, other organizations represented on the letter include National Taxpayers Union, Council for Citizens Against Government Waste, Americans for Prosperity, Citizen Outreach, Digital Liberty, Washington Policy Center, Small Business & Entrepreneurship Council, Indian American Conservative Council, Discovery Institute, Competitive Enterprise Institute, Less Government, American Legislative Exchange Council, 60 Plus Association, Hispanic Leadership Fund, RightMarch.com, Frontiers of Freedom, Smart Business Hawaii and Citizens for Limited Taxation.

Read the full text of the letter below.  Or download a copy of the letter as it was sent to the House Judiciary Committee by clicking here (.PDF).


 July 13, 2011

U.S. House of Representatives Committee on the Judiciary

RE: Support H.R. 1002/S. 543, Freezing State and Local Wireless Taxation

Dear Member of Congress:

We the undersigned groups – representing millions of Americans – urge you to support the Wireless Tax Fairness Act (H.R. 1002/S. 543) to put a five-year freeze on attempts by state and local governments to raise taxes on wireless services. Not only are wireless taxes already excessively high and discriminatory, but they also significantly restrain the growth and expansion of broadband.

Across the country, state and local governments are putting a substantial burden on consumers by raising discriminatory taxes on wireless services to fund special interest projects and cover up overspending addictions. Today, the average consumer pays upwards of 16 percent in taxes on their wireless bill every month. In some localities, wireless taxes have skyrocketed to well over 25 percent.

A federal solution to curbing wireless taxation has become imperative. The mandatory freeze on wireless taxes under H.R. 1002/S. 543 is a pro-consumer, pro-business, anti-tax, and bipartisan solution to this growing problem.

Nationally, these taxes on wireless cost consumers over $21 billion annually, making it more expensive to run a business and more difficult to maintain a household budget. Almost 90% of Americans rely on cell phones and a growing majority utilizes mobile broadband. Yet, all but three states tax wireless higher than they do the sale of general goods or services, and some states tax wireless despite having no sales tax on other goods or services. Taxes targeting wireless service make it significantly less affordable and inhibit universal adoption, especially for low-income families, small business owners, rural Americans, and seniors.

We urge you to support and co-sponsor H.R. 1002/S. 543 to freeze discriminatory increases in state and local wireless taxes. Wireless today doesn't recognize city and state borders, and the wireless consumer shouldn't have to either.

Sincerely,

Grover Norquist
President
Americans for Tax Reform

Andrew Moylan
Vice President of Government Affairs
National Taxpayers Union

Tom Schatz
President
Council for Citizens Against Government Waste

Phil Kerpen
Vice President for Policy
Americans for Prosperity

Chuck Muth
President
Citizen Outreach

Kelly William Cobb
Executive Director
Digital Liberty

Carl Gipson
Director, Small Business, Technology and Telecommunications
Washington Policy Center

Jeffrey Mazzella
President
Center for Individual Freedom

Karen Kerrigan
President & CEO
Small Business & Entrepreneurship Council

Dino Teppara
Chairman
Indian American Conservative Council

Hance Haney
Senior Fellow
Discovery Institute

Ryan Radia
Associate Director of Technology Studies
Competitive Enterprise Institute

Seton Motley
President
Less Government

John Stephenson
Director, Telecommunications and Information Technology Task Force
American Legislative Exchange Council

Jonathan Williams
Director, Tax and Fiscal Policy Task Force
American Legislative Exchange Council

Jim Martin
Chairman
60 Plus Association

Mario H. Lopez
President
Hispanic Leadership Fund

Dr. William Greene
President
RightMarch.com

George Landrith
President
Frontiers of Freedom

Sam Slom
President
Smart Business Hawaii

Chip Faulkner
Executive Director
Citizens for Limited Taxation

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