Rep. Lofgren Introduces Bill to Block Cell Phone Tax Increases

Press Release

Today, Rep. Zoe Lofgren (D-CA) introduced the bi-partisan, pro-consumer "Cell Tax Fairness Act," which provides for a 5-year moratorium on any new discriminatory wireless tax or fee. A typical consumer already pays 15.19% in federal, state, and local taxes on their cell phone bill as compared to 7.07% for most other taxable goods and services. Between January 2003 and July 2007, the effective rate of taxation on wireless service increased four times faster than the rate for other taxable goods and services. The bill does not disturb current state and local taxes on wireless service.

"The Cell Tax Fairness Act will help ensure that consumers make choices about communications technology based on the merits of that technology, rather than on the rate of taxation," noted Rep. Zoe Lofgren. "The Cell Tax Fairness Act does not take away any existing revenue for state or local governments, it simply calls for a period of tax stabilization that will help further innovation and access in the wireless world."

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