November 3, 2011

The Honorable Max Baucus
Chairman Senate Finance Committee
511 Hart Senate Office Building
Washington, DC 20510

The Honorable Orrin Hatch
Ranking Member Senate Finance Committee
104 Hart Office Building
Washington, DC 20510

RE: Wireless Tax Fairness ACT (H.R. 1002, S. 543)

Dear Chairman Baucus and Ranking Member Hatch,

Senator Ron Wyden and Senator Olympia Snowe have introduced (S. 543) in the Senate, and we support the passage of this important legislation. The Wireless Tax Fairness Act of 2011 prohibits states or local governments from imposing any new discriminatory tax on mobile services, mobile service providers, or mobile service property (i.e., cell phones) for five years after the enactment of this Act. Similar legislation was passed by the House on November 1, with bi-partisan support.

In The Hispanic Institute’s publication, Hispanics and Broadband: Making the most of the Mobile Connected Future, we document that Hispanics are more likely than Whites to access the Internet and e-mail on a mobile device. Hispanics are also more likely than Whites to have a mobile Internet connection in lieu of a home broadband connection. High taxes on wireless services can keep these much needed technologies out of the hands of Hispanics and all Americans alike.

The average wireless consumer pays over 16% in taxes on wireless services. This is nearly double the taxes on other goods and services. These taxes are of course regressive on minority communities that shoulder most of the economic hardship. During this economic downturn, policy makers in the nation’s capitol must focus on measures that alleviate economic burdens for all communities. The Wireless Tax Fairness ACT is a step in the right direction.

On behalf of The Board of Directors of The Hispanic Institute, I urge you to support this legislation because it will benefit wireless consumers who are already paying more than double the national average sales tax rate for their cell phones service. Imposing taxes on wireless service that are more than the double what a general business pays must be considered discriminatory and should not be allowed to continue unchecked.

Sincerely,

Gus k. West, Board Chair The Hispanic Institute