Telecom Bills Filling Hopper on Day One of New Congress
Lawmakers introduced several telecom measures Thurs. on the opening day of Congress -- some of which didn’t make it last Congress. Senate Commerce Committee Ranking Member Stevens (R-Alaska) introduced 5 measures, including a bill that would reform the Universal Service Fund (USF) program that Senate Minority Whip Lott (R-Miss.) is co-sponsoring. Stevens also is introducing a measure that would address FCC and FTC roles in policing pretexting -- impersonating someone else’s identity to illegally gain access to private phone records. A Judiciary bill was enacted last Congress.
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Sens. McCain (R-Ariz.) and DeMint (R-S.C.) introduced a bill banning new taxes on the cellphone industry for 3 years, a move the wireless industry immediately applauded. Wireless consumers continue to be the target of discriminatory taxation, said CTIA Pres. Steve Largent, who said Americans pay more than 14% of their monthly bills on taxes and fees: “This is an indefensible level of taxation for most any product, let alone one that allows more than 225 million Americans to constantly stay connected.”
A similar version of the bill was passed 21-1 as an amendment to the Senate telecom bill (HR-5252). McCain said the National Conference of State Legislatures and National Governors’ Assn. have issued policy positions asking states to eliminate excessive and discriminatory taxes on communications services. “During the 3-year moratorium, it is my hope that state and local governments -- in cooperation with industry -- will work to eliminate discriminatory taxes and fees on wireless service,” McCain said in his floor statement introducing the bill.
Sprint-Nextel said consumers in 19 states and D.C. pay more than 15% of their total wireless bill in taxes and fees, and some pay as much as 25%. McCain cited a Pew Internet & American Life Project study saying 26% of Americans say they couldn’t live without a cellphone because it’s their only communications source. Yet local govts. still think cellphones are a luxury item that can be taxed at a higher rate, he said: “Tax rates as high as this are generally associated with cigarettes and alcohol and known as ’sin taxes’ designed to reduce consumption.” That isn’t likely states’ intention, McCain said.
Stevens offered a measure that would make available immediately $43 million in grants for emergency 911 services -- funding that wasn’t scheduled to be available until 2008 under the Deficit Reduction Act that passed last year. The money will help public safety access points (PSAPs) get their systems up-to-date more quickly, a Stevens staffer said. Stevens also introduced an Internet child safety bill that would ban brokers from selling information about children through lists. And another bill would preempt the online travel industry from taxing consumers for hotels and cruise ships they book online.
Sen. Ensign (R-Nev.) introduced a bill that would repeal the 3% federal excise tax on local wireline service, put in place to fund the Spanish-American War in 1898. The tax on long-distance was repealed last year after several years of effort, but the local tax remains. Sen. Schumer (D-N.Y.) introduced a similar bill.