MyWireless.org® Joins Legislative Push Seeking Ban for Multiple and Discriminatory State and Local Taxes on ‘Digital Goods and Services’

PRESS CONTACT: Brian Johnston, (202) 736-2980

WASHINGTON, D.C. (May 12, 2011) – National wireless consumer advocacy group MyWireless.org® applauded Congress today for the introduction of bipartisan legislation giving consumers a break from potential multiple and discriminatory state and local taxes levied on purchases of digital goods and services. This important pro-consumer legislation, entitled the “Digital Goods and Services Tax Fairness Act of 2011,” S. 971 and H.R. 1860, was introduced today by Senators Ron Wyden (D-OR) and John Thune (R-SD), and Representatives Lamar Smith (R-TX) and Steve Cohen (D- TN), respectively.

Every day, more and more American consumers are going online to purchase and download “digital goods and services,” such as apps, videos, music and ringtone downloads, e-books and video games. This consumer trend hasn‟t gone unnoticed by state, city and local politicians willing to impose new taxes because they are desperate for new revenue sources. Currently, consumers could potentially be double- (or even triple-) taxed for their digital purchases. The “Digital Goods and Services Tax Fairness Act” calls for a “national framework” or some “rules of the road” to be placed on state and local taxation for the purchase of digital goods and services made on wireless devices, using wireless broadband, or over the Internet.

Brian Johnston, MyWireless.org’s director of advocacy said, “When you buy a book in a bookstore, a DVD movie or a CD at a music store, you pay state and local taxes just once. But if you purchase that same book, movie or music online with your mobile device, you‟re vulnerable to potentially several levels of state and local taxation. That‟s unfair and is simply outrageous policy. This legislation would establish a sensible framework for how digital goods and services should be fairly taxed at the state and local levels.”

Johnston continued, “The e-commerce transaction that occurs when buying digital goods and services crosses numerous state boundaries, and consumers shouldn’t be exposed to the taxing whims of each and every jurisdiction. The proposed framework protects consumers from a confusing and messy patchwork of different state and local tax laws. Consumers should be taxed in a fair and reasonable manner when buying digital goods, and they deserve to know to which government entity they are paying those taxes.”

MyWireless.org believes wireless technology is making the purchase of digital goods and services easier than ever before, and also that taxing purchases made in this manner should be treated the same as other more traditional means. In tough economic times for many Americans, MyWireless.org commends Sens Wyden and Thune, and Reps Smith and Cohen for taking common-sense action on behalf of hundreds of millions of hard-working American consumers, by seeking to provide a fair and responsible system of taxation for their digital purchases. MyWireless.org urges the 112th Congress to follow their leadership on this important issue and co-sponsor and pass this fair legislation, S. 971 and H.R. 1860.

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MyWireless.org® is a national nonpartisan non-profit advocacy organization, made up of wireless consumers, businesses and community leaders from around the country, supporting reasonable pro-consumer and pro-taxpayer wireless policies.

 


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State of the Wireless Consumer (2011)

Wireless Consumers Remain Overwhelmingly Satisfied with Service – Opposed to Discriminatory Wireless Taxes & Fees, Onerous Regulations

MARCH 22, 2011 – New national wireless consumer survey data released by nonpartisan non-profit consumer advocacy coalition MyWireless.org® shows that America’s cellphone consumers remain highly satisfied with their wireless service, are opposed to higher federal, state and local taxes and believe proposals to add new regulations on their wireless service would raise prices and slow investment and innovation.

McLaughlin & Associates, along with Penn, Schoen & Berland Associates, conducted this bi-partisan national survey of 1,000 adult wireless phone users who are likely voters via telephone on March 1-3, 2011.

Of the 1,000 cellphone users polled nationwide, the findings include:

1. How often do you use a cellphone? If you don’t have a cellphone, just say so.

  • 80% Regularly Use
  • 67% Every Day
  • 12% Almost Every Day
  • 20% Couple Times a Week

2. When there is a general election for US Senate and Congress, do you always vote, almost always vote, vote most of the time, hardly ever vote, or never vote? If not registered, just say so.

  • 87% Very Likely Voter
  • 69% Always Vote
  • 18% Almost Always Vote
  • 13% Vote Most of the Time

3. For you personally, what is the most important reason for having a cellphone?

  • 28% In Case of Emergency
  • 12% Stay in Touch
  • 10% Convenience
  • 9% Talk to Family
  • 8% For Business
  • 5% Talk to Kids, Check in
  • 4% Quick, Easy Communication
  • 4% Safety
  • 3% Roadside Emergency
  • 2% Portable, Always with Me
  • 2% Reach Me Anytime
  • 1% Use Anywhere
  • 1% Easy Access
  • 1% Travel Usage
  • 1% Security
  • 1% Free or Cheap Long Distance

4. Which of the following cellphone features is the most important to you?

  • 70% Making, Receiving Voice Calls
  • 14% Texting
  • 5% Internet Access
  • 4% Email
  • 1% GPS Navigation
  • 1% Taking Pictures or Video
  • 1% ‘Apps’

5. Overall, are you satisfied or dissatisfied with your cellphone service?

  • 95% Satisfied
  • 59% Very Satisfied
  • 37% Somewhat Satisfied
  • 4% Dissatisfied

6. Considering the price you pay for your cellphone service and the benefits it provides you, do you consider the value of your cellphone service to be excellent, good, fair or poor?

  • 75% EXCELLENT or GOOD
  • 25% Excellent
  • 49% Good
  • 23% FAIR or POOR
  • 18% fair
  • 5% poor

7. Do you believe adding new government regulations on cellphone service would make your cellphone service better or worse, or make no difference?

  • 6% Better
  • 33% Worse
  • 36% No Difference at All

8. Do you believe adding new government regulations on cellphone service would make your cellphone service more expensive or less expensive, or make no difference?

  • 60% More Expensive
  • 6% Less Expensive
  • 18% No Difference at All

9. Which of the following proposals would you like to see Congress pass?

a. A proposal that ensures one consistent national set of rules and regulations for wireless services.

-OR-

b. A proposal that allows each of the 50 states to impose its own set of rules and regulations on wireless services.

  • 42% National Rules
  • 43% State Rules
  • 15% Don’t Know

10. Now, how would you rate the job wireless companies are doing for their customers in each of the following areas? Would you say they are doing an excellent, good, fair or poor job?

“Providing choices of phones and plans.”

  • 76% EXCELLENT or GOOD
  • 24% excellent
  • 52% good
  • 20% FAIR or POOR
  • 16% fair
  • 5% poor

11. Now, how would you rate the job wireless companies are doing for their customers in each of the following areas? Would you say they are doing an excellent, good, fair or poor job?

“Providing cutting edge technology.”

  • 81% EXCELLENT or GOOD
  • 33% excellent
  • 48% good
  • 10% FAIR or POOR
  • 9% fair
  • 1% poor

12. Now, how would you rate the job wireless companies are doing for their customers in each of the following areas? Would you say they are doing an excellent, good, fair or poor job?

“Providing innovative applications, known as ‘Apps.’”

  • 64% EXCELLENT or GOOD
  • 24% excellent
  • 40% good
  • 11% FAIR or POOR
  • 8% fair
  • 2% poor

13. Now, how would you rate the job wireless companies are doing for their customers in each of the following areas? Would you say they are doing an excellent, good, fair or poor job?

“Being fair to customers.”

  • 57% EXCELLENT or GOOD
  • 13% excellent
  • 44% good
  • 38% FAIR or POOR
  • 28% fair
  • 10% poor

14. Do you agree or disagree with the following statement?

“Companies competing for wireless customers give consumers enough choices so they can pick the wireless device, plan, options and content that best fits their needs?”

  • 83% Agree
  • 37% Strongly Agree
  • 46% Somewhat Agree
  • 12% Disagree
  • 7% Somewhat Disagree
  • 5% Strongly Disagree

15. Please tell me whether you agree or disagree with the following statement.

“Wireless companies keep offering customers more choices, more innovation and more services, so you have the freedom to do just about anything with your phone.”

  • 85% AGREE
  • 46% strongly agree
  • 39% somewhat agree
  • 9% DISAGREE
  • 6% somewhat disagree
  • 4% strongly disagree

16. Have you ever switched to a new wireless carrier?

  • 42% Yes
  • 57% No

17. Was your reason for switching to a new wireless provider more about taking advantage of better devices, prices or services provided by another wireless carrier? Or other?

  • 68% Taking Advantage
  • 26% Other

18. Which phone service is more important to you?

  • 54% Cellphone Service
  • 36% Home Landline Service

19. Would you consider giving up your home landline phone and only use a cellphone? If you have already given up your home landline phone and only use your cellphone, please say so.

  • 7% Have Already Given Up
  • 33% Yes, Would Consider
  • 57% No, Would Not Consider

20. What is the primary reason for not wanting to give up your home landline phone?

  • 30% Like it, it’s a Habit
  • 15% Reliable and Dependent
  • 10% Better Quality or Reception
  • 7% Fax and/or Internet
  • 5% Ease of Use, Convenient
  • 5% Security and Safety
  • 4% Cheaper, Save Money
  • 3% Emergency, or Tracing
  • 2% Use it for Business
  • 2% It’s Always Charged
  • 2% Spend More Time at Home
  • 2% In Case of Power Outage

21. Do you agree or disagree with the following statement?:

“My cellphone makes my life easier.”

  • 89% AGREE
  • 54% Strongly Agree
  • 35% Somewhat Agree
  • 10% DISAGREE
  • 5% Somewhat Disagree
  • 4% Strongly Disagree

22. Regarding your cellphone service, which one of the following is the important issue to you?

a. Better value for your service

b. Improving cellphone coverage and quality

c. Cellphone features like Internet access

d. Adding more consumer protections

e. Access to all of the ‘Apps’ you want

  • 48% Better Value
  • 36% Coverage and Quality
  • 5% Consumer Protections
  • 3% Access to ‘Apps’
  • 3% Features and Internet

23. How often would you say you purchase online digital downloads such as ringtones, music, videos, games, books or software to your computer, cellphone or other wireless device?

  • 33% Download
  • 4.8% Regularly
  • 1.2% Every Day
  • 3.6% Once/Twice A Week
  • 8.3% Once/Twice A Month
  • 19.9% Rarely
  • 65.7% Never
  • 1.3% Don’t Know/Refused

24. Have you seen, read or heard anything about state or city governments wanting to tax the purchases of online digital downloads - such as ringtones, music, movies, videos, games, books, pictures and software?

  • 21.4% Yes
  • 75.4% No
  • 3.2% Don’t Know/Refused

25. Which statement do you agree with more on the issue of taxing the purchases of online digital downloads?

1. Purchasing online digital downloads crosses state lanes, and interstate commerce is subject to one fair and consistent set of taxes established by federal guidelines. Or,

2. Each state should have the right to decide how its state taxes the purchases of online digital downloads without any national rules established by the federal government.

  • 30.6% Federal Guidelines
  • 46.5% State Guidelines
  • 22.9% Don’t Know/Refused

26. Do you use “apps” on your cellphone or other wireless device?

  • 27.8% Yes
  • 70.4% No
  • 1.8% Don’t Know/Refused

27. What type of “apps” do you or would you use most often on your cellphone or other wireless device?

  • 13.0% GPS/Navigation
  • 9.5% Social Networking
  • 9.3% News
  • 8.6% Weather
  • 3.5% Entertainment
  • 2.2% Sports
  • 1.4% Restaurants/Dining
  • 9.8% None
  • 39.3% Don’t Know/Refused

28. Are you aware wireless carriers now offer parental controls that allow parents to limit a child’s cellphone use, a child’s Internet access, and texting and downloading? If you are unaware, please say so.

  • 61.9% Yes, Aware
  • 35.6% No, Unaware
  • 2.5% Don’t Know/Refused

29. Regarding children under the age of 18, which one of the following best describes your family?

1. I have a child who has a cellphone on a family plan

2. I have a child who has a cellphone but not on a family plan

3. I have children but they don’t have cellphones

4. I don’t have any children under the age of 18

  • 31.2% Children
  • 19.3% With Cellphone
  • 12.5% Cell/Family Plan
  • 6.8% Cell/Not Family
  • 11.9% Without Cellphones
  • 66.4% No Children Under 18
  • 2.4% Don’t Know/Refused

30. Do you currently use the parental controls offered by wireless carriers or other providers?

  • 32.8% Yes
  • 67.2% No

31. From what you know, about what percentage of your monthly cellphone bill is made up of taxes and fees?

  • 11.7% Said Less Than 5%
  • 23.2% Said 5% to 9%
  • 15.7% Said 10% to 14%
  • 6.3% Said 15% to 19%
  • 6.9% Said 20% or More
  • 36.2% Don’t Know/Refused

32. Do you think the tax rate on your monthly cellphone service should be lower, the same or higher than the taxes you pay on general goods and services, which is approximately 7%?

  • 48.5% Lower
  • 36.2% The Same
  • 2.8% Higher
  • 12.5% Don’t Know/Refused

33. Would you support or oppose Congress passing a 5-year freeze on discriminatory, new wireless taxes and fees?

  • 66.5% SUPPORT
  • 39.9% Strongly Support
  • 26.6% Somewhat Support
  • 17.9% OPPOSE
  • 5.8% Somewhat Oppose
  • 12.1% Strongly Oppose
  • 15.6% Don’t Know/Refused

34. Are you aware that your cellphone or wireless device is a recyclable product? If you are unaware, please say so.

  • 84% Yes, aware
  • 15% No, unaware
  • 1% Don’t Know/Refused

35. Are you aware that your cellphone or wireless device accessories are also recyclable products? If you are unaware, please say so.

  • 68% Yes, aware
  • 30% No, unaware
  • 2% Don’t Know/Refused

36. Do you know if your wireless carrier has a “green” program in place to accept your used wireless products? If you don’t know, please say so.

  • 36% Yes
  • 42% No
  • 21% Don’t Know/Refused

37. Have you ever recycled or donated an old or no longer in-service wireless device or any device accessories?

  • 54% Yes
  • 44% No
  • 2% Don’t Know/Refused

 


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MyWireless.org® Applauds House Judiciary Subcommittee for ‘Wireless Tax Fairness Act’ Hearing

MyWireless.org® Applauds House Judiciary Subcommittee for ‘Wireless Tax Fairness Act’ Hearing

PRESS CONTACT: Brian Johnston, (202) 736-2980

WASHINGTON, D.C. (March 15, 2011) – National non-profit wireless consumer advocacy coalition MyWireless.org® today recognized the leadership of Chairman Howard Coble (R-NC) after the House Judiciary Committee’s Subcommittee on Courts, Commercial and Administrative Law hearing on recently re-introduced H.R. 1002, the bipartisan ‘Wireless Tax Fairness Act.’ This important legislation now joins its Senate companion bill, S. 543, the bipartisan ‘Wireless Tax Fairness Act,’ which was also recently re-introduced and referred for consideration by the Senate Finance Committee last week. The original sponsors of these bills are Representatives Zoe Lofgren (D-CA) and Trent Franks (R-AZ), and Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME), respectively.

This strongly-supported (158 co-sponsors by today’s hearing date), bipartisan, and overwhelmingly pro-consumer House bill calls for a 5-year break from all new, discriminatory state and local wireless taxes and fees for hundreds of millions of American wireless consumers. On behalf of those consumers, MyWireless.org thanks the timely leadership shown by the original sponsors of both these bills, for stepping up for consumers during continuing tough economic times by supporting a measure of much-needed pocketbook relief.

On average, American wireless consumers now pay approximately 16.3% in combined government taxes, fees and surcharges on every monthly bill. That’s more than double the average sales tax paid on other general goods and services, which is approximately 7.4%. Forty-seven states and the District of Columbia now have wireless tax and fee rates that exceed the average tax rate on other goods and services. The national tax burden faced by wireless consumers is about $21 billion dollars annually.

Brian Johnston, Director of Advocacy for MyWireless.org, said, “The name of the legislation says it all. This is about fairness for American wireless consumers, and we congratulate Chairman Coble and the bill’s sponsors and co-sponsors for acting on behalf of so many of their own constituents to put the brakes on runaway taxes and fees. Wireless users are prime targets for unfair state and local taxation, and the ‘Wireless Tax Fairness Act’ is a step in the right direction to fight against discriminatory charges.”

“We look forward to working with full committee Chairman Lamar Smith (R-TX) to soon move the bill on out for a public vote on the House Floor, also to move the companion bill through the Senate, and ultimately to see the President sign this important legislation into law,” said Johnston. “Simply put, American wireless users deserve a break from excessive taxes on communicating – wireless should remain affordable and accessible for ALL Americans.”

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MyWireless.org® is a nonpartisan non-profit national advocacy organization, made up of wireless consumers, businesses and community leaders from around the country, supporting reasonable pro-consumer and pro-taxpayer wireless policies.

 


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MyWireless.org® Applauds House Judiciary Subcommittee for ‘Wireless Tax Fairness Act’ Hearing

MyWireless.org® Applauds House Judiciary Subcommittee for ‘Wireless Tax Fairness Act’ Hearing

PRESS CONTACT: Brian Johnston, (202) 736-2980

WASHINGTON, D.C. (March 15, 2011) – National non-profit wireless consumer advocacy coalition MyWireless.org® today recognized the leadership of Chairman Howard Coble (R-NC) after the House Judiciary Committee’s Subcommittee on Courts, Commercial and Administrative Law hearing on recently re-introduced H.R. 1002, the bipartisan ‘Wireless Tax Fairness Act.’ This important legislation now joins its Senate companion bill, S. 543, the bipartisan ‘Wireless Tax Fairness Act,’ which was also recently re-introduced and referred for consideration by the Senate Finance Committee last week. The original sponsors of these bills are Representatives Zoe Lofgren (D-CA) and Trent Franks (R-AZ), and Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME), respectively.

This strongly-supported (158 co-sponsors by today’s hearing date), bipartisan, and overwhelmingly pro-consumer House bill calls for a 5-year break from all new, discriminatory state and local wireless taxes and fees for hundreds of millions of American wireless consumers. On behalf of those consumers, MyWireless.org thanks the timely leadership shown by the original sponsors of both these bills, for stepping up for consumers during continuing tough economic times by supporting a measure of much-needed pocketbook relief.

On average, American wireless consumers now pay approximately 16.3% in combined government taxes, fees and surcharges on every monthly bill. That’s more than double the average sales tax paid on other general goods and services, which is approximately 7.4%. Forty-seven states and the District of Columbia now have wireless tax and fee rates that exceed the average tax rate on other goods and services. The national tax burden faced by wireless consumers is about $21 billion dollars annually.

Brian Johnston, Director of Advocacy for MyWireless.org, said, “The name of the legislation says it all. This is about fairness for American wireless consumers, and we congratulate Chairman Coble and the bill’s sponsors and co-sponsors for acting on behalf of so many of their own constituents to put the brakes on runaway taxes and fees. Wireless users are prime targets for unfair state and local taxation, and the ‘Wireless Tax Fairness Act’ is a step in the right direction to fight against discriminatory charges.”

“We look forward to working with full committee Chairman Lamar Smith (R-TX) to soon move the bill on out for a public vote on the House Floor, also to move the companion bill through the Senate, and ultimately to see the President sign this important legislation into law,” said Johnston. “Simply put, American wireless users deserve a break from excessive taxes on communicating – wireless should remain affordable and accessible for ALL Americans.”

###

MyWireless.org® is a nonpartisan non-profit national advocacy organization, made up of wireless consumers, businesses and community leaders from around the country, supporting reasonable pro-consumer and pro-taxpayer wireless policies.

 


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MyWireless.org® Thanks Congress, Joins Call for Passage of Legislation Seeking 5-Year Wireless Tax Relief for Consumers

PRESS CONTACT: Brian Johnston, (202) 736-2980

WASHINGTON, D.C. (March 10, 2011) – With wireless consumers now paying on average more than 16% a month in taxes and fees on their cellphone bills, MyWireless.org® today applauded the introduction of bipartisan legislation that gives consumers a five-year break from new, discriminatory state and local wireless taxes and fees. The much-needed consumer relief legislation, entitled the ‘Wireless Tax Fairness Act,’ was re-introduced today in the U.S. Senate and in the U.S. House of Representatives. The bills were introduced by Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME), and Representatives Zoe Lofgren (D-CA) and Trent Franks (R-AZ), respectively.

The ‘Wireless Tax Fairness Act’ calls for a federal moratorium to be placed on all unfair, new state and local wireless taxes and fees for five years. In tough economic times for many Americans, Senators Wyden and Snowe, and Representatives Lofgren and Franks should be commended for taking common sense action on behalf of hundreds of millions of hard-working Americans, by seeking to provide much-needed tax relief. MyWireless.org urges the 112th Congress to follow their leadership on this issue.

Brian Johnston, Director of Advocacy for MyWireless.org said, “It’s outrageous that American wireless consumers are paying on average more than twice as much in taxes and fees on their wireless bills than they are in general sales tax. Right now 47 states and the District of Columbia levy wireless taxes on consumers that exceed the general sales tax rates they pay. It is blatantly unfair to put a target on the backs of wireless consumers and gouge them just to balance an overspent budget – that’s simply not the way wireless consumers should be treated. We should be encouraging their use of such a productive and useful technology that can do so much good for so many Americans, rather than punish them with excessive and discriminatory taxes and fees.”

Johnston continued, “Americans now face an annual national tax burden of approximately $21 billion dollars in combined monthly wireless taxes, fees and surcharges, just to communicate on their cellphones! The ‘Wireless Tax Fairness Act’ is an essential and necessary step toward standing up for wireless consumers and saying enough’s enough. If a state needs to raise taxes on its residents, it ought to be done in a fair and equitable manner.”

In the past six years, hundreds of thousands of wireless consumers all across the U.S. have helped protect their wireless service from excessive taxes and regulations by contacting their Representatives and Senators – both in Washington and in their states – through the MyWireless.org website. As consumers pay close attention to their monthly bills and set household budgets, they are becoming increasingly aware of the ever-spiraling monthly tax and fee burden paid to every level of government, and they are demanding action to protect how they communicate.

MyWireless.org will continue to mobilize consumers around the country to urge their policymakers in Washington, D.C. to pass the ‘Wireless Tax Fairness Act,’ introduced by Senators Wyden and Snowe, and Representatives Lofgren and Franks. Members of Congress are urged to follow their lead and co-sponsor this critically important and fair legislation today.

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MyWireless.org® is a nonpartisan non-profit national advocacy organization, made up of wireless consumers, businesses and community leaders from around the country, supporting reasonable pro-consumer and pro-taxpayer wireless policies.

 


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