St. Patrick... meet Uncle Sam!

So here you are, the morning after your St. Patrick's 'observance' and you've woken up in a bit of a fog. Something doesn't seem right... you don't have your usual wits about you and feel as if your wallet's a little lighter than the day before. While some might have carried their activity to a bit of an extreme, I'd like to suggest that the 'hangover' you're feeling might has nothing to do with the consumption of Irish grog, but everything to do with green... which of course, is also the color of money...  which is also what you're probably paying more than your fair share of in wireless use taxes and fees. Anyone who's looked at their wireless bill lately has likely seen the litany of tax and fee assessments... universal service, E911, gross receipts taxes, state taxes, county taxes, city taxes. They're actually at the root of one of consumers' biggest gripes about the wireless industry. Some complain the $39.99 service they signed up for really costs them more, and they're right! Exorbitant taxes and fees, compounded by funding crises on all levels of government, have made wireless consumers the bulls-eye of tax-happy jurisdictions all over the country.

The Providence-Journal just ran a piece on the outrageous levels of taxes and fees paid by Rhode Island consumers, based on statistics compiled in a report by Scott Mackey of Kimbell Sherman Ellis, which was commissioned by wireless service providers. That report shows that taxes and fees on wireless service increased four times faster than taxes for other goods and services between 2003 and 2007. Four times! Even with the recent elimimation of the Federal Excise Tax, which was first slapped on telecommunications users to fund the Spanish-American War, the average tax and fee burden on wireless consumers is more than 15%. That's more than double that which we usually pay in taxes on other goods and services.

It is obvious that this inordinate and discriminating taxation on such a valuable and universally utilized service is wrong. It is particularly harmful to consumers on limited or fixed incomes, who should be able to enjoy the full benefits of wireless service without worry. This has gotten so out of hand that Senator John McCain is sponsoring legislation to place a three-year moratorium on any new state and local wireless-related taxes and fees. This kind of measure would be a good start in establishing a fair and equitable tax policy. We're not saying that wireless consumers should be off the hook for any such assessments, but 15%-plus is way over the top. Consumers and businesses should be encouraged to use technology that helps them stay better connected than ever before, and to be more efficient and productive in the 21st century global economy. Now that would be worth a toast!