House Bans New Cell Taxes for 5 Years
Nov 2, 2011, 7:21 AM by Eric M. Zeman
The House of Representatives has approved a measure that prevents state and local governments from adding any new taxes to cell phones bills for a period of five years. Rep. Zoe Lofgren, sponsor of the legislation, said, "We need to encourage the development and adoption of wireless broadband, not tax it out of existence." Lofgren pointed out that the rate at which wireless services are taxed often exceeds the taxes levied on goods such as alcohol and tobacco. The tax rate on wireless services varies, but the legislation cited the 26.8% tax rate in Baltimore, the 20.4% tax rate in New York City, and the 19.9% tax rate in Omaha, Neb., as extreme examples of how out of control wireless taxes are. In response, the CTIA Wireless Association said, "On behalf of the 300 million wireless customers in the U.S., CTIA applauds the Wireless Tax Fairness Act's lead sponsors. Today's vote is a crucial step toward providing wireless subscribers with some much needed relief by putting a five-year freeze on new, discriminatory taxes and fees on their monthly bills. In light of the challenging economy, we hope the U.S. Senate moves swiftly to pass the companion bill." Senators Ron Wyden of Oregon and Olympia Snowe of Maine have introduced similar legislation in the Senate.
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While I agree.....
no ban on federal taxes?
How about a cap?