[Congressional Record Volume 155, Number 83 (Thursday, June 4, 2009)]
[Senate]
[Page S6204]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Ms. Snowe, Mrs. Murray, Mr. Menendez, 
        Mr. McCain, Mrs. Gillibrand, and Mr. Ensign):
  S. 1192. 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.
  Ms. SNOWE. Mr. President, I rise today to join my colleague Senator 
Wyden in reintroducing legislation that will stop the increasing 
financial burden being placed on wireless consumers by discriminatory 
taxes. On average, the typical consumer pays 15.2 percent of his/her 
total wireless bill in Federal, State, and local taxes, fees and 
surcharges--this is compared to the 7.07 percent average tax rate for 
other goods and services.
  The Mobile Wireless Tax Fairness Act of 2009 would ensure that these 
tax rates don't increase further by prohibiting States and local 
governments from imposing any new discriminatory tax on mobile 
services, mobile service providers, or mobile service property for a 
period of 5 years. The bill defines ``new discriminatory tax'' as a tax 
imposed on mobile services, providers, or property that is not 
generally imposed on other types of services or property, or that is 
generally imposed at a lower rate.
  The wireless era has changed the way the world communicates. To date, 
there are more than 270 million wireless subscribers in the United 
States, and consumers used more than 2.2 trillion minutes of airtime 
from July 2007 to June 2008--that is more than 6 billion minutes per 
day! And with this growth, more people are using the cell phone as a 
primary communication device as well as for data and Internet 
services--approximately 20 percent of households have ``cut the cord'' 
and use cell phones exclusively. The increased mobility and access 
wireless communications provide have improved our lives, our safety, 
and the efficiency of our work and businesses. It is estimated that the 
productivity value of all mobile wireless services was worth $185 
billion in 2005 alone.
  However, as more consumers and businesses embrace wireless 
technologies and applications, more States and local governments are 
embracing it as a revenue source and applying these excessive and 
discriminatory taxes, which show up on consumers' bills each month. In 
fact, the effective rate of taxation on wireless services has increased 
four times faster than the rate on other taxable goods and services 
between January 2003 and January 2007.
  These excessive and discriminatory taxes discourage wireless adoption 
and use, primarily with low-income individuals and families that still 
view a cellular phone as a luxury when many Americans consider it a 
necessity. By banning these taxes, we can equalize the taxation of the 
wireless industry with that of other goods and services and protect the 
wireless consumer from the weight of exorbitant fees, surcharges, and 
general business taxes. We cannot allow this essential and innovative 
industry as well as the consumers who benefit from its amazing services 
and applications to suffer excessive tax rates.
  Placing a moratorium on new discriminatory wireless taxes will ensure 
that consumers continue to reap the benefits of wireless services. 
Congress took similar action with the Internet--passing the Internet 
Tax Freedom Act Amendments Act of 2007 last session--because of the 
incredible impact the Internet will continue to have on consumers and 
businesses alike. The future of wireless is just as bright and that is 
why we must ensure its continued growth.
  It is confounding that telecommunications, one of the most essential 
components of our economy and our daily lives, is one of the most 
highly taxed sectors. That is why I sincerely hope that my colleagues 
join Senator Wyden and me in supporting this critical bipartisan 
legislation so we can continue our efforts to curtail discriminatory 
taxes on these vital services so that all Americans can leverage the 
benefits they offer. I would like to thank Senator McCain for his past 
leadership on this issue and for cosponsoring this consumer-friendly 
legislation.
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