Panel Moves Wireless Tax bill

The House Judiciary Committee backed legislation that would impose a five-year ban on new taxes and fees targeting only wireless services and not imposed on other goods and services.

The Wireless Tax Fairness Act, approved by voice vote, would only apply to new taxes imposed on wireless services and does not affect to those already in place. Supporters say wireless services are being unfairly taxed by states and localities compared with other services. They note that wireless customers pay an average of 16.3 percent in taxes and fees compared with the 7.4 percent average rate imposed on other goods and services. "In many places, the taxation of wireless approaches or even exceeds the rates of sin taxes on goods like alcohol and tobacco," Rep. Zoe Lofgren (D-CA), the bill's sponsor, said in a statement. "This legislation simply freezes existing discriminatory wireless taxes to help foster wireless networks as a platform for innovation and jobs growth." Some state and local government groups, however, have voiced strong concerns with the measure, saying it would hamper their ability to raise revenues at a time when they are facing massive budget shortfalls.