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5-year-Freeze in Wireless Services Taxes

By Tom Dewell
November 2, 2011 12:11 pm

taxesAmazing – our Congress has agreed NOT to raise taxes, at least on wireless services.

The Washington Post carried an article on November 1st that explained the decision.

The voice vote reflected a consensus that new taxes on wireless mobile services have far outpaced average sales taxes on other items and have become a deterrent to the spread of wireless broadband technology.

“We need to encourage the development and adoption of wireless broadband, not tax it out of existence,” said Rep. Zoe Lofgren, D-Calif., the sponsor of the legislation.

The article goes on to say:

Sens. Ron Wyden, D-Ore., and Olympia Snowe, R-Maine, have introduced identical legislation in the Senate.

“Wireless is a prime example of how every time a new innovation hits the market, governments invent new ways to tax it,” Wyden said. He has argued that with the advent of 3G and 4G technology, wireless mobile devices are the gateway to the Internet but that discriminatory and duplicative taxes and fees are regressive, harm lower-income people and make access to the Internet unacceptably expensive.

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