WASHINGTON, May 12, 2011 /PRNewswire-USNewswire/ -- National wireless consumer advocacy group MyWireless.org® applauded Congress today for the introduction of bipartisan legislation giving consumers a break from potential multiple and discriminatory state and local taxes levied on purchases of digital goods and services. This important pro-consumer legislation, entitled the 'Digital Goods and Services Tax Fairness Act of 2011,' was introduced today by Senators Ron Wyden (D-OR) and John Thune (R-SD), and Representatives Lamar Smith (R-TX) and Steve Cohen (D-TN), respectively.
Every day, more and more American consumers are going online to purchase and download 'digital goods and services,' such as apps, videos, music and ringtone downloads, e-books and video games. This consumer trend hasn't gone unnoticed by state, city and local politicians willing to impose new taxes because they are desperate for new revenue sources. Currently, consumers could potentially be double- (or even triple-) taxed for their digital purchases. The 'Digital Goods and Services Tax Fairness Act' calls for a "national framework" or some "rules of the road" to be placed on state and local taxation for the purchase of digital goods and services made on wireless devices, using wireless broadband, or over the Internet.
Brian Johnston, MyWireless.org's director of advocacy said, "When you buy a book in a bookstore, a DVD movie or a CD at a music store, you pay state and local taxes just once. But if you purchase that same book, movie or music online with your mobile device, you're vulnerable to potentially several levels of state and local taxation. That's unfair and is simply outrageous policy. This legislation would establish a sensible framework for how digital goods and services should be fairly taxed at the state and local levels."
Johnston continued, "The e-commerce transaction that occurs when buying digital goods and services crosses numerous state boundaries, and consumers shouldn't be exposed to the taxing whims of each and every jurisdiction. The proposed framework protects consumers from a confusing and messy patchwork of different state and local tax laws. Consumers should be taxed in a fair and reasonable manner when buying digital goods, and they deserve to know to which government entity they are paying those taxes."
MyWireless.org believes wireless technology is making the purchase of digital goods and services easier than ever before, and also that taxing purchases made in this manner should be treated the same as other more traditional means. In tough economic times for many Americans, MyWireless.org commends Sens Wyden and Thune, and Reps Smith and Cohen for taking common-sense action on behalf of hundreds of millions of hard-working American consumers, by seeking to provide a fair and responsible system of taxation for their digital purchases. MyWireless.org urges the 112th Congress to follow their leadership on this important issue and co-sponsor and pass this fair legislation.
MyWireless.org®, a national nonpartisan non-profit consumer advocacy organization, has joined together in a diverse coalition of American wireless consumers, business interests and taxpayer advocacy groups to support legislation in Congress and in the states to ensure that regulatory policies are kept fair, and that wireless is kept affordable and accessible to all Americans. To learn more, please visit www.MyWireless.org.