Ill Communication

House Passes Wireless Fairness Act - Broadcasting and Cable
Imposes a five-year moratorium on taxes on wireless service

The House passed the Wireless Tax Fairness Act Tuesday, which imposes a five-year moratorium on taxes on wireless service, a tax rate legislators have said now averages about 16.3%, or more than double that on other goods and services.

Reining-in taxes plays to the Republican side of the aisle, while boosting the attractiveness of wireless helps out with the Obama Administration's push for wireless as a driver of mobile broadband adoption, which is why the bill has numerous co-sponsors from both parties.

The Bill was introduced in the House -- at the same time a Senate version was also introduced -- by Reps. Zoe Lofgren (D-Calif.) and Trent Franks (R-Ariz.).


House votes for 5-year-freeze in wireless services taxes - Washington Post

The House on Tuesday approved a five-year freeze on any new state and local taxes imposed on cellphones and other wireless services, including wireless broadband access.

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.

She said that in many places, the taxation of wireless approaches or even exceeds the rates of sin taxes on goods like alcohol and tobacco.


Maybe it isn't such a bad idea to tax these frivolous, addictive and possibly carcinogenic services the same way we tax cigarettes and booze. This law, along with the Telecommunications Act of 1996, shows how easily our elected officials can be bribed into creating legislation that only benefits the snake oil salesmen and those who fall for their magic spiel.