Wireless Tax Fairness Act Introduced

Would Freeze Taxes on Wireless 'Net, Phone Access
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If a couple of legislators have their way, Congress will pass a five-year moratorium on new taxes on wireless Internet access

Reps. Zoe Lofgren (D-Calif.) and Trent Franks (R-Ariz.) have introduced the Wireless Tax Fairness Act. That comes as the Senate is considering legislation--but not until next month--to make permanent the Internet Tax Fairness Act, which prevents state and local taxes on wired Internet access.

The WTFA would not eliminate the taxes, only freeze them at current levels for the next five years.

They point out that given the demos most likely to be getting their Internet access wirelessly, the current nearly 18% tax on wireless service falls disproportionately on the younger, lower income, and working (the could have added minority, but did not) Americans.

"With wireless broadband access rapidly becoming a key platform for innovation, the Wireless Tax Fairness Act will help foster greater access and investment in this key market by halting [as in arresting the growth of] discriminatory and increasingly onerous tax treatment."

They site as reasons to freeze the tax rates cities like Chicago, where it is 36%, Baltimore at 29.9%, and New York at 26.9%.

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