Sen. Toomey Introduces Wireless Tax Fairness Act To Protect Consumers And Promote Wireless Innovation

Press Release from Pat Toomey, U.S. Senator for Pennsylvania

WASHINGTON, D.C. – Sens. Pat Toomey (R-Pa.) and Ron Wyden (D-Ore.) are working to protect consumers from overbearing taxation and to keep mobile Internet as a dynamic force for our economy. Together, they have introduced the bipartisan Wireless Tax Fairness Act, which prohibits states from imposing any new discriminatory taxes on wireless goods and services for five years.

Mobile technology continues to advance and becomes more capable each year. The innovation and job growth in the mobile wireless industry rivals any other sector of the economy. However, overtaxing a blossoming industry is a fail proof way to limit growth potential. For this reason, it is important that a nationwide safeguard be set in place that solidifies stable tax rates for the mobile wireless industry.

“Our bipartisan bill will protect consumers in Pennsylvania and across the country from tax increases on wireless products and services,” said Sen. Toomey. “Rather taking more money out of people’s pockets, we need to let the Internet economy thrive and create jobs without being subject to a tax that is not imposed on other products or services.”

Matthew J. Brouillette, President and CEO of the Commonwealth Foundation, said: “We applaud Sen. Toomey’s work on behalf of Pennsylvania taxpayers. The Wireless Tax Fairness Act would protect Pennsylvanians and citizens across the nation from excessive and harmful new taxes.”

Between 2003 and 2007, the effective tax rate for wireless voice and Internet services increased four times faster than other taxable goods. The Internet economy is now a driver of economic growth and new jobs, but discriminatory taxes on wireless services are acting to throttle mobile, online innovation that is driving economic growth and job creation. More than a decade ago, Congress stepped in to protect the Internet from discriminatory taxes; it’s time to protect wireless access to the Internet from the same threat.

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