Statements on Introduced Bills and Joint Resolutions

Floor Speech

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By Mr. WYDEN (for himself, Ms. SNOWE, Mrs. GILLIBRAND, Mr. MCCAIN, Mr. MENENDEZ, Mr. ENSIGN, Mr. NELSON of Florida, and Mr. BURR):

S. 543. A bill to restrict any State or local jurisdiction from imposing a new discriminatory tax on cell phone services, providers, or property; to the Committee on Finance.

Mr. WYDEN. Mr. President, today I rise to introduce the Wireless Tax Fairness Act and I am delighted and honored to be joined in this effort by Senators SNOWE, GILLIBRAND, ENSIGN, MENENDEZ, McCain, BURR, and Senator Nelson from Florida.

I want to start with an interesting fact that I read a few months ago, which is that over 20 percent of Americans have gotten rid of their land line telephone service in favor of wireless mobile technology. Unfortunately, as more and more people make this shift, they are being forced to pay higher and higher state and local taxes for their wireless service. Since 2007 the average wireless tax rate consumers have to pay rose by 1.1 percentage points, from 15.2 percent to 16.3 percent. At a time when the Federal Government is trying to improve consumer access to developing technologies and broadband Internet in particular, does it make sense to have local, state, and Federal Governments forcing higher taxes on them? The answer is no, especially as 3G and 4G emerge as dominant wireless technologies. These taxes only act to hurt consumers, stifle innovation in the wireless industry, and restrict access to the Internet.

In order to make sure that wireless technology can continue to flourish I am introducing the Wireless Tax Fairness Act. This legislation will keep American companies competitive by putting the brakes on unfair wireless tax increases--allowing American companies to remain leaders in innovation, making it easier for Americans to afford these services and providing an affordable way for consumers to access the Internet. The technology that is developed and deployed in America paves the way for the same American technology to be deployed overseas, creating and sustaining good American jobs.

In an era when a new cellphone, smartphone, or tablet is introduced nearly every month it is essential that the market for these products is determined by consumers and not by disproportionately high taxes. 17 percent of American families earning less than $30,000 rely on a wireless device to access the Internet. The deployment and availability of such services needs to be encouraged by keeping prices affordable for both individuals and businesses through a fair and reasonable tax regime.

In order to make sure that our walk is consistent with our talk on promoting American innovation, it is time to place a moratorium on discriminatory wireless taxes and fees. I hope our colleagues will join us in supporting this bill.

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