Between federal, state and local government taxes and fees on your monthly wireless bill, you’re paying an average of about 17%. 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 46 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. In the 112th Congress, the U.S. House of Representatives passed the bipartisan ‘Wireless Tax Fairness Act’ (H.R. 1002). The Senate failed to act upon the companion bill S. 543 in the second session of the 112th Congress. The Wireless Tax Fairness Act will soon be reintroduced in the 113th Congress with a strong foundation of over 200 returning House and Senate bipartisan cosponsors, numerous endorsements, and motivated lead sponsors who are committed to see the legislation enacted in the 113th Congress.
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 in November 2011.
- Senators Ron Wyden (D-OR) and Olympia Snowe (R-ME) led the charge in the Senate, where the bill stalled in 2012.
- 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.
- The Wireless Tax Fairness Act will soon be reintroduced in the House of Representatives.
What You Can Do
Tell your Representatives 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.
The time to act is now!
