AFSCME Letter - H.R. 1521 - Cell Phone Fairness Tax

July 8, 2009

The Honorable Steve Cohen, Chairman
Subcommittee on Commercial and Administrative Law
Committee on the Judiciary
1005 Longworth House Office Building
Washington, DC 20515

Dear Mr. Chairman:

On behalf of the 1.6 million members of the American Federation of State, County, and Municipal Employees (AFSCME), I am writing to express our opposition to the "Cell Tax Fairness Act of 2009", H.R. 1521.  State and local governments are suffering record size budget gaps and have already made major cuts in vital public services and workforces.  H.R. 1521 would impose new restrictions on state and local taxing authority and would establish a troubling precedent involving federal preemption over state and local fiscal decision-making.
 
 The "Cell Tax Fairness Act of 2009" fails to take into account that state and local tax structures vary greatly from location to location.  Various jurisdictions tax goods and services, at different rates, for varied needs.  Furthermore, individual jurisdictions have changing needs due to regular economic cycles, demographic fluctuations, natural or man-made disasters and other factors. The current national recession clearly highlights the need for continuing flexibility and autonomy for state and local taxation authority.

We are living through times of extremely rapid technological change.  Hundreds of millions of Americans use cell phones every day for personal communications, work activities, commerce, and leisure - and Americans increasingly use cell phones for new and previously unknown applications and activities.  For these reasons, it would be unwise to enact this preemption for five years. The recent explosive growth of cell phone usage and ever-changing new applications has occurred within the existing framework of state and local taxation.  Cell phone use is pervasive, vibrant, and growing and thus the need for H.R. 1521 is overstated. 

 We urge you to oppose the Cell Tax Fairness Act, H.R. 1521, because it would restrict state and local government taxing authority amidst a national recession and would encourage future federal interference in state and local tax decision-making. 


 Sincerely, 

Charles M. Loveless
Director of Legislation

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