Feeds

Americans to get five-year wireless tax freeze

New Yorkers already paying more than UK

The Essential Guide to IT Transformation

The US House of Representatives has imposed a five-year freeze on new wireless taxes, forbidding states or municipal authorities from imposing any new taxes until 2016.

The average American pays 16.3 per cent tax on wireless services, compared to 7.4 per cent on other products, according to the legislation's sponsor Zoe Lofgren*. The new bill won't cut those rates, but it should stop them going up as it prevents local and state authorities imposing any new tax which only affects wireless services.

So wireless users in New York will continue to pay 20.4 per cent tax on their wireless, while residents of Baltimore have to shell out 26.8 per cent, which makes the UK VAT rate of 20 per cent (charged on almost everything we buy, even wireless) look reasonable.

The Washington Post quotes the bill's co-sponsor Trent Franks**: "The exorbitant discriminatory taxes on wireless customers are not only unfair, they are counterintuitive, adding another costly impediment to the success of so many American businesses who are struggling in the midst of a prolonged recession."

The mobile industry lobbying body, CTIA, was unrestrained in its praise of the bill: "On behalf of the 300 million wireless customers in the US, CTIA applauds the Wireless Tax Fairness Act’s lead sponsors", pausing only to hope that the Senate pushes its version of the bill through quickly. ®

* US Representative for California (Democrat) – Rep D-Calif, in American parlance
** US Representative for Arizona (Republican) – Rep R-Ariz, as above

The Essential Guide to IT Transformation

More from The Register

next story
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
iWallet: No BONKING PLEASE, we're Apple
BLE-ding iPhones, not NFC bonkers, will drive trend - marketeers
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Speak your brains on SIGNAL-FREE mobile comms
Readers chat to the pair who flog the tech
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.