Senators Seek To Ban Cell Phone Tax Increases
You're already paying twice as much in wireless taxes as for other goods
by KathrynV 02:40PM Saturday Jul 12 2008
Did you know that the average tax rate that you pay for wireless phone and data services is more than twice that which you pay for nearly all other goods? The tax rate on wireless services is close to 16% when state, local and federal taxes are all factored in; this is considerably higher than the 7% tax rate on most other goods. And the situation could get worse as there is currently nothing stopping the tax rate on wireless services from going up. However, there are at least two senators who have proposed
a five-year ban on additional increases to the tax rate on wireless services. Dubbed the Mobile Wireless Tax Fairness Act of 2008, it is designed to reduce fears that the cost of all services and goods are going to spiral out of control. The bill could theoretically be passed by Congress in this session but is unlikely to go through because of the strong opposition facing it.