Subject: [NEXTEL-1] Tax Legislation Has Wireless Industry On Watch

From: [email-masked]
Date: Thu, 12 Feb 2004 15:20:18 -0500

Tax Legislation Has Wireless Industry On Watch
BY MARK ROCKWELL
FEBRUARY 12, 2004

WASHINGTON -- Wireless carriers are watching developing efforts to resurrect
Internet access tax legislation on wireline services with some apprehension.

Sens. Lamar Alexander, R-Tenn., and Diane Feinstein, D-Calif., among other
senators are reportedly backing a bill that would extend a current ban on taxing
high-capacity wireline Internet access services such as DSL, dial-up lines and
cable modems. The ban doesn't apply to wireless access. The bill, say Senate
sources, hadn't been formally introduced as of 1 p.m. (EST) today.

The bill is a belated follow up to a bill passed by the House last fall that
would give make such a ban permanent. The Senate didn't pass a similar bill back
then.

Wireless carriers are concerned about the legislation because it effectively
singles them out for the taxes, shielding competitive wireline services from
taxation.

The legislation 'effectively forces wireless users to pay higher taxes because
they access the Internet wirelessly instead of with a dial-up connection on a
desktop computer,' says CTIA President Steve Largent in a statement issued
today. "Equal access should receive equal treatment," he says.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=2&pubdate=02/12/04

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