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Reps. Lofgren and Franks Introduce Bill to Block Cell Phone Tax Increases

March 17, 2009
Today, Reps. Zoe Lofgren (D-CA) and Trent Franks(R-AZ) introduced the bi-partisan, pro-consumer "Cell Tax FairnessAct," which provides for a 5-year moratorium on any new discriminatorywireless tax or fee. A typical consumer already pays 15.2% in federal,state, and local taxes on their cell phone bill as compared to 7.1% formost other taxable goods and services.

March 17, 2009

Washington, D.C. - Today, Reps. Zoe Lofgren (D-CA) and Trent Franks(R-AZ) introduced the bi-partisan, pro-consumer "Cell Tax FairnessAct," which provides for a 5-year moratorium on any new discriminatorywireless tax or fee. A typical consumer already pays 15.2% in federal,state, and local taxes on their cell phone bill as compared to 7.1% formost other taxable goods and services. Between January 2003 and July2007, the effective rate of taxation on wireless service increased fourtimes faster than the rate for other taxable goods and services. Thebill does not disturb current state and local taxes on wireless service.

"The Cell Tax Fairness Act, H.R. 1521, will help further innovationand access in the wireless world," noted Lofgren. "By curtailingfurther increases on wireless taxes and fees, we hope to encourageadditional consumer driven development in wireless technology. The CellTax Fairness Act does not take away any existing revenue for state orlocal governments, it simply calls for a period of tax stabilization.This legislation will ensure that consumers make choices aboutcommunications technology based on the merits of that technology,rather than on the rate of taxation."

"During the economic strain of a recession, raising taxes onhard-working American families is the last thing that will bringstability and growth back to our economy." Franks stated. "Due to theexorbitant rate at which cell phone taxes have been rising these pastseveral years, current cell phone customers are already paying two tothree times the amount of taxes that they pay on almost all other goodsand services, for a product that is becoming increasingly important intechnological innovation, including the growing trend among educatorstoward using wireless devices as educational tools. Thus, thebipartisan Cell Tax Fairness Act will place a 5-year moratorium on anynew discriminatory wireless tax or fee, and will help to ensure thatexcessive taxation does not stifle production, consumption, orcontinued innovation in wireless services."

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