SOURCE: American Consumer Institute

American Consumer Institute

November 28, 2011 08:39 ET

American Consumer Institute Survey -- Consumers Oppose Excessive Taxation on Wireless Communication Services

93% Oppose the Diversion of E-911 Fees to Other Purposes

WASHINGTON, DC--(Marketwire - Nov 28, 2011) - A national consumer survey conducted by the American Consumer Institute finds 89% of consumers oppose the imposition of higher tax rates on wireless services compared to what is levied on other goods and services. When consumers were asked what the tax rate should be, 49% said the wireless tax rate should be the same as the sales tax rate on other goods and services, though 34% believed that wireless service taxes should be lower and 2% believed that wireless taxes should be higher. Recent reports showed that consumers pay twice or even three times the tax rate on wireless services compared to sales taxes on other goods and services, and, in several states, wireless tax rates on consumers are in excess of 20%.

The survey also asked consumers about the use of state and local monthly wireless fees collected for E-911 services. The FCC recently released an annual report that found a number of states were collecting fees to support E-911 services, only to use those funds for other purposes. When asked, 93% of consumers opposed such practices, with only 5% agreeing that state governments should be allowed to divert E-911 funds.

The survey was completed on the week ending November 20th and covered a national random sample of 800 consumers.

The American Consumer Institute Center for Citizen Research is a 501c3 educational and research institute. For more information about ACI or the survey's details, please visit the Institute's website at www.theamericanconsumer.org.