April 15, 2008
MyWireless.org® Calls for 5-Year Cell Phone Tax Relief on Tax Day 2008
WASHINGTON, DC - The national consumer advocacy coalition MyWireless.org® called today for a 5-year break for consumers from new discriminatory state and local wireless taxes. Bipartisan legislation, entitled the “Cell Tax Fairness Act of 2008,” was introduced today in the U.S. House, calling for a moratorium to be placed on new unfair wireless taxes for five years. Congresswoman Lofgren (D-CA) and Congressman Cannon (R-UT) have taken pro-consumer action on behalf of millions of Americans to provide much-needed relief, and MyWireless.org® urges the U.S. Congress to follow their leadership on this issue.
In the past three years, hundreds of thousands of wireless consumers across the country have helped protect their wireless service from excessive taxes and regulations by contacting their Representatives and Senators through the MyWireless.org® Web site. In 2006, the Internal Revenue Service (IRS) stopped collection of a 108-year old tax, the 3% Federal Excise Tax (FET) on bundled communications services, including wireless. This critical action came at a time when the average tax burden on America’s 257 million wireless consumers had climbed to over 17%. The IRS also issued partial rebates to qualifying taxpayers on Tax Day 2007.
Kimberly Kuo, Executive Director of MyWireless.org®, said, “American wireless consumers still pay over 15% on average in combined monthly wireless taxes, fees and surcharges. In these uncertain economic times, hundreds of millions of American wireless consumers and their families deserve a break from excessive taxes on communicating.”
“Recent polling data shows that 89% of wireless consumers are extremely happy with their wireless services and choices,” Kuo continued, “and they don’t want government meddling with regulations in a marketplace that works for them. However, the same consumers remain very sensitive to price – especially taxes. 85% of consumers polled favored Congress passing an escape from new discriminatory state and local wireless taxes and fees.”
“Wireless has overwhelmingly become the service of choice for staying connected, but also for mobile Internet content, music, gaming, video and more,” Kuo said. “Consumers clearly want to prevent more spiraling taxes on wireless. 85% think they pay enough – or too much – and support policies that would prohibit more state and local taxes and fees on wireless,” Kuo continued. “Legislation has now been introduced in the U.S. House – placing a 5-year tax hiatus on new discriminatory state and local wireless taxes – and Tax Filing Day 2008 is the perfect occasion for us to mobilize consumers to urge their elected officials in Washington to pass the Lofgren-Cannon “Cell Tax Fairness Act of 2008.”
MyWireless.org® is a national non-profit consumer advocacy organization giving wireless consumers a powerful and unified voice to protect the freedom and security they enjoy with wireless services. MyWireless.org® brings together consumers from across the country to protect their wireless rights in their cities, states, and nationally.