Pressure Group Calls for 5-Year Freeze in US Cellphone Taxes

Published on: 16th April 2009

US pressure group, MyWireless.org has called for a 5-year break for consumers from new state and local wireless taxes. Bi-partisan legislation, entitled the ‘Cell Tax Fairness Act of 2009,' is currently being considered in the U.S. House of Representatives, and calls for a moratorium to be placed on new wireless taxes and fees at the state and local levels for a period of five years.

MyWireless is described as a "non-profit consumer advocacy organization", although it was founded by member companies of the CTIA, which represents mobile network operators. It also shares the same registered address as the CTIA in Washington D.C.

Brian Johnston, Director of Communications and Federal Advocacy for MyWireless.org, said, "American wireless consumers today pay over 15% on average in combined monthly wireless taxes, fees and surcharges. The annual national consumer tax debt for wireless consumers is now about $21 Billion dollars! More than 270 million American wireless consumers, their families and their businesses truly deserve a break from excessive taxes on an invaluable tool for daily mobile communication, particularly in these challenging economic times."

"Wireless is overwhelmingly now the service of choice for staying connected, for use in case of an emergency, and also for mobile content and much more," Johnston said. "Consumers clearly want to prevent more spiraling taxes on wireless. Common sense and bi-partisan legislation is being considered right now in the U.S. House - and soon will be reintroduced in the U.S. Senate - placing a 5-year tax hiatus on new, discriminatory state and local wireless taxes and fees. Tax Filing Day 2009 marks the perfect occasion for us to mobilize consumers across the country to urge their lawmakers in Washington to pass the Lofgren-Franks ‘Cell Tax Fairness Act of 2009.'"

Since 2005, hundreds of thousands of wireless consumers across the country have helped protect their wireless service from excessive taxes and regulations by joining the consumer coalition and making their voice heard - by contacting their Representatives and Senators through the MyWireless.org Website. 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 millions of wireless consumers had climbed to over 17%! The IRS also then issued partial tax rebates to qualifying taxpayers on Tax Day 2007.

 

 

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