Oregon Senator Ron Wyden has taken up the crusade of cutting the taxes we pay on wireless phones and services, according to a press release issued by the Senator, the average U.S. tax rate for most goods is about 7% but after combining state, local and federal taxes on cell phones and service the average rate more than doubles. That’s more than taxes on tobacco and alcohol, Senator Wyden says. To rectify this Senator Wyden, along with Michigan Senator Olympia Snowe, has proposed the “Mobile Wireless Tax Fairness Act of 2008.”
The Act would prohibit any new or increased taxes on “wireless telecommunications infrastructure and services” for five years. Sounds good, but the bill doesn’t do much to change wireless tax rates so that they are more inline with other goods and services.
Still wireless association CTIA, is all for it; CTIA’s President Steven Largent issued a statement today thanking Senators Wyden and Snowe “for stepping up to the plate to defend wireless users across the country from unfair and discriminatory taxation.