Wireless and the Law: April 2008 Archives

Samsung chairman Lee Kun-hee resigned after indictment for tax evasion and breach of fiduciary trust. He publicly apologized on TV.  It is suspected that Lee hid about $4.5 billion worth of Samsung stock in accounts with borrowed names.  He is charged with evading about $120 million in taxes.

CTIA, The Wireless Association and its member companies are urging Congress to pass legislation requiring a five-year hiatus on new discriminatory state and local wireless taxes. To achieve this goal, Representatives Zoe Lofgren (D-CA) and Chris Cannon (R-UT) introduced the “Cell Tax Fairness Act” today in the U.S. House of Representatives.

“The wireless sector of the technology industry continues to be an important driver for growth in our nation’s economy. Americans don’t just talk on their wireless phones anymore; they access the Internet, get information, pay bills and use wireless to be more productive at work and other every day activities, ” said Lowell McAdam, CTIA-The Wireless Association® Chairman and Verizon Wireless President and CEO. “With about 15 percent of each customer’s monthly bill already going to taxes and fees, increasing discriminatory and unfair taxes on wireless customers presents a clear and present danger to future growth. Policymakers should roll back taxes on wireless customers.”

According to analysis from a new study that examines trends of taxation on wireless service in the U.S., consumers continue to face a substantial, unfair tax burden, paying over twice the 7.1% rate imposed on other competitive goods and services subject to sales tax. Between 2003 and 2007, taxes and fees on wireless service increased four times faster than taxes on other goods and services.