I would like to start by thanking the Chair for holding this hearing.  Today’s hearing is the second in less than a year on this topic.  H.R. 1521, the “Cell Tax Fairness Act of 2009” has 112 co-sponsors in the 111th Congress – a nearly identical amount of support to a similar bill in the 110th Congress.

Mr. Chairman, I am honored to be one of those 112 co-sponsors, as I know you are.  I hope that with your leadership and that of Ms. Lofgren, we can have a mark-up of this legislation in the near future.

I support this legislation because it is my belief that states and localities unfairly burden cell phone consumers with excess taxes.  Nationwide, the average tax rate on wireless services is 15.19%, which is more than double the average sales tax rate for all business, which is 7.07%.  These tax rates are more in keeping with “sin taxes” (taxes on alcohol and tobacco) than with general business taxes.

It is my understanding that these taxes on the wireless industry are estimated to be over $15 billion a year.  That is an astonishing number and something that warrants the attention of this Subcommittee.

I know that discrimination, at least in this context, is often in the eye of the beholder.  However, by any definition, imposing taxes on wireless providers that are more than double what a general business pays without a doubt must be considered discriminatory.

I will also continue to to oppose discriminatory taxes or excise taxes imposed by states that excessively punish individual industries.  I strongly believe that consumers should be the ones to pick winners and losers, not government.

Finally, I’m heartened to see the two State Representatives testifying today, because I know that many States are hurting financially.  My state is currently trying to close a $3 billion deficit.  I respect those concerned about this bill's effect on state revenues.  However, this legislation merely freezes current tax structures on wireless services for 5 years. 

I believe that is a worthwhile purpose and one that will benefit consumers and technological advancement in the long run.
I yield back the balance of my time.