FreedomWorks Supports the Mobile Wireless Tax Fairness Act of 2008 (S. 3249)

Senator Olympia Snowe (R-ME) and Senator Ron Wyden (D-OR) are taking the lead in protecting mobile phone users by sponsoring the Mobile Wireless Tax Fairness Act of 2008 (S. 3249). This bill would prevent states and cities from imposing new discriminatory taxes on mobile phones for five years. Currently, wireless consumers are already paying $21 billion dollars in taxes and fees.

In recent years states and municipalities have disproportionately raised and levied new taxes on mobile phone customers. From 2003 to 2007, mobile phone taxes increased four times faster than taxes on other goods and services. Unfortunately for consumers, these taxes do nothing to improve mobile phone services, but are used for general revenues and other political pet projects.

S. 3249 would protect consumers against the tax whims of local politicians by imposing a five year hiatus on state and local wireless tax increases.

The next technological breakthroughs in communications will most likely occur with the further development of wireless networks and technology. By adding unnecessary costs to mobile phones, consumers will be harmed as they pay higher prices and new technologies could be delayed or even prevented from reaching the market.

FreedomWorks President Matt Kibbe commented:

“Government should not pick winners and losers in the marketplace. Discriminatory tax policy on mobile phones distorts the market and harms consumers. The Mobile Wireless Tax Fairness Act of 2008 is a great step in the right direction of protecting consumers from abusive state and local taxes. These taxes and fees already consume 15 percent of our monthly wireless bill. Mobile phone users should not be punished by a politician’s inability to live within a budget.”