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 …
On behalf of the customers? Yeah, right.
"On behalf of the 300 million wireless customers in the US, CTIA applauds the Wireless Tax Fairness Act’s lead sponsors"
"Now we can add a million more nickel and dime fees without the 300 million customers noticing and complaining as quickly."
Tax? What Tax?
They call the additional money grabs surcharges, 911 fees (to pad the unrestrained pensions of emergency services personnel), tariffs, USF fees (of numerous FCC required forms)... and taxes.
One hopes that the bill is crafted to apply to any additional government fees, charges, surcharges, taxes, or any other money grubbing by the lards in government.
The landline government grab is far stonking heavier though, up to 100% of the base ILEC charge. I'm surprised the various US government bodies aren't crying an ocean of crocodile tears at all the money lost as people flee to mobes which seem to actually have a lower government wallet sucking ratio than landlines.
And lots of those fees are even more regressive than is first apparent — in particular, "911 surcharges" are often capped at a high double-digit number of lines. About the only good thing you can say is that the tax rate is smaller than on picking up a rental car at an airport.
Jolly Roger for the obvious reason.
VAT is only part of the government take
"... which makes the UK VAT rate of 20 per cent ... look reasonable."
As well as VAT on sales, the British government raised over £22 billion from the auction of the 3G spectrum. This additional component of revenue is far from negligible.
And that auction crippled the UK telecoms industry. Within a couple of years 10s of thousands of telecoms jobs were lost. Some of the "winning" companies still haven't fully recovered a decade later.
"The US House of Representatives has imposed a five-year freeze on new wireless taxes"...
The House of Representatives cannot impose a freeze on taxes, or any other legislation on their own. What the article should say is that the House of Representatives has approved legislation to freeze taxes, and the bill will now be sent to the Senate for approval. Following Senate approval, and negotiations to resolve any differences in their respective legislation, the bill will be sent to President Obama for his signature or veto. Only after both houses of Congress pass a bill, AND the President signs it, does it become law.
Unfortunately, the two house of Congress are passing very little legislation these days... they're to busy playing "one upsmanship" with each other and the two parties (Republican and Democrat) to pass much in the way of legislation that doesn't meet their partisan standards... Fire 'em all, and bring in Congress critters who will do the job they're getting paid to do.
FAIL, because the US Congress is a total and abject failure right now. Or maybe I should go with a "joke alert" or thermonuclear explosion.
I want proof
"911 fees (to pad the unrestrained pensions of emergency services personnel)," If you are going to make those kinds of claims I want proof . 911 fees goes to maintenance of 911 systems . Last time I looked at my cell phone bill it has the same fees and surcharges as a land line.