Statements on Introduced Bills and Joint Resolutions

Floor Speech

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - July 10, 2008)

BREAK IN TRANSCRIPT

By Mr. WYDEN (for himself and Ms. SNOWE):

S. 3249. A bill to restrict any State or local jurisdiction from imposing a new discriminatory tax on mobile wireless communications services, providers, or property; to the Committee on Finance.

Mr. WYDEN. Mr. President, 100 years ago the automobile revolutionized the way Americans lived and did business. Government responded by making a massive investment in infrastructure to support this new technology. That investment gave our industries a real competitive advantage in the world marketplace for much of the 20th century by making it cheaper and easier to move goods around the country.

Today, information technology has brought an equal, if not greater, revolution to American business. But this time, rather than investing in infrastructure and fostering growth, we have allowed the country's IT infrastructure to be taxed at dangerous and unhealthy levels that put American business at a competitive disadvantage.

The information revolution has changed the way we learn, the way we work, the way we hold elections, and the way we communicate as a society, among other things that keep our country working. It has made vast educational, health care and entrepreneurial opportunities accessible to our most remote communities. But telecommunication taxes in the U.S. have been levied at a rate much higher than other types of sales and business taxes.

Rather than investing in IT infrastructure, we have left it to the private sector to build and maintain our telecommunications networks. And while this practice has sometimes served Americans well, we are falling behind some major international competitors in far too many areas.

I am not today calling for anything as far-reaching as Federal investment in IT infrastructure--today I am simply asking that we stop yoking our most innovative IT networks with increased taxes.

Wireless broadband holds the promise of connecting even our most distant communities to the rest of the world. In time, these connections will bring health care, educational, communications and commercial services to Americans who have been left out for far too long. This growth will not happen if we keep burdening this important technology with what amounts to discriminatory taxation.

I have fought for many years to expand the development of the Internet and our telecommunications infrastructure. Along with colleagues on both sides of the aisle, I worked to successfully protect our network providers from content-related litigation. Four times now, I have fought to protect the Internet from being hit with multiple discriminatory taxes from thousands of State and local tax authorities--and have worked to extend that protection indefinitely.

Today I am proposing something far more modest--if just as necessary--that we put a moratorium on new or increased taxes on our wireless telecommunications infrastructure and services for the next 5 years.

Along with my colleague Senator SNOWE, I am introducing the Mobile Wireless Tax Fairness Act to keep mobile wireless services and facilities free from new discriminatory taxes.

This bill would not impact a single current tax that has been levied by a State or locality. It will not remove a single dollar from their communal coffers. What it will do is guarantee our wireless network providers protection from even greater taxation at a time when we are asking them to implement the largest technology upgrade in history--an upgrade that will bring economically important, true broadband speeds to wireless customers for the first time.

I will admit that there are lots of problems with the way Federal, State and local taxes are levied on telecommunications services. This legislation addresses only one of those problems, but it is a big one.

Taxes on wireless services are some of the most regressive taxes in the Nation. Cell phones and other wireless devices have become essential to many working Americans, for their jobs, for their safety and for maintaining the communications they need to stay in touch with families when both parents work and raise children. Piling increased taxes on these families at a time when budgets are being stretched by skyrocketing gas and food prices is not only unreasonable, it is downright wrong.

I am proud that my colleague Senator SNOWE joins me in introducing this important legislation. Senator Snowe has long been an advocate for the improvement and expansion of our IT infrastructure and today we have taken another important step that will help strengthen our country and our economy today and in the future. This proposal joins H.R. 5793 by Congresswoman LOFGREN and Congressman CANNON in the House and I look forward to working with them to see this important legislation passed.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

BREAK IN TRANSCRIPT

Source