[Congressional Record Volume 157, Number 36 (Thursday, March 10, 2011)]
[Senate]
[Page S1550]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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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