Between federal, state and local government taxes and fees on your monthly wireless bill, you’re paying an average of more than 16%. That’s more than double the average sales tax rate of about 7% that you pay on other goods or services you buy. In fact, wireless consumers in 47 states and the District of Columbia pay more in wireless taxes and fees than they do general sales tax. Find out what you’re paying by looking up your state’s rates.
Wireless taxes are going up quickly, too. Between 2007 and 2010, wireless taxation increased at a rate 3 times faster than the rate on other taxable goods and services. And, because wireless taxes are often regressive, they hit seniors, minority communities, working families and small business especially hard.
Help from Congress: The ‘Wireless Tax Fairness Act’
The good news is there’s help on the way. The U.S. House of Representatives recently passed the bipartisan ‘Wireless Tax Fairness Act’ (H.R. 1002), and its identical companion bill in the U.S. Senate (S. 543) is in front of the Finance Committee for consideration.
What the ‘Wireless Tax Fairness Act’ Does
If passed, the bill would prohibit local and state governments from tacking on any new taxes and fees on a specific communications service, such as wireless, for five years. They could still increase taxes and fees on communications across the board, but they couldn’t just single out any one set of consumers, such as wireless users like you. The five year freeze would provide wireless consumers with a much-needed break from even higher taxes and fees, and a window to develop a tax and fee structure that is fair and sensible.
Support for the Bill
- The ‘Wireless Tax Fairness Act’ was introduced and championed in the House by Representatives Zoe Lofgren (D-CA) and Trent Franks (R-AZ). They signed on 236 co-sponsors and the bill passed unanimously by voice vote.
- Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME) are leading the charge in the Senate and could use your support by having you ask your Senators to join them in moving the ‘Wireless Tax Fairness Act’ through the Senate.
- The majority of consumers we polled in our annual survey support the five-year freeze and say they think wireless taxes should be equal to, or lower than, the sales tax rate.
What You Can Do
Tell your Senators that you’d like some relief from unfair wireless taxes and fees. Ask them to support this pro-consumer, common-sense legislation on your behalf. Their support will impact millions of wireless consumers just like you, your family and your business.
