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Tomorrow, the House of Representatives is scheduled to vote on H.R. 1002, the Wireless Tax Fairness Act of 2011.  H.R. 1002 would put a five-year moratorium on the taxes and fees charged to wireless consumers.

According to the findings, of the Cellular Telecommunications Industry Association (CTIA), the average wireless consumer is charged more than 16% in taxes and fees while other taxable goods and services are only 7.4%.  Additionally, 47 states along with the District of Columbia are charging wireless consumers more than other taxable goods and services. Five states, including Nebraska, Washington, New York, Florida and Illinois, charge more than 20%.

As a result, more than 140 Senators and Representatives have co-sponsored the Wireless Tax Fairness Act of 2011.  This bipartisan legislation would put a five-year freeze on these taxes and fees.  The freeze would allow wireless consumers some much needed relief during these challenging conditions and give time for an examination into the discrepancy of wireless tax rates as compared to other goods and services.  Moreover, the freeze would not take away any existing revenue from state and local governments, but would give them time to reform their wireless tax policies.

If you are in favor of this legislation, please make your voice heard by contacting your Representatives and Senators.  With the House voting tomorrow, be sure to voice your support for this bill to Representative of your Congressional district.  Write your elected officials here.

Maria Coyne, Executive Vice President of the Business Banking segment at KeyBank, offers great financial advice in her monthly blog Maria on Money. From healthcare to the national debt, Maria delves into issues that affect women business owners and discusses the latest financial news and trends. Her posts are quick reads and great conversation starters, and links to additional information are always offered for those who wish to explore the issues more thoroughly.
 
Maria is responsible for KeyBank's Small Business Administration (SBA) program and is the founder and leader of the bank's Key4Women program for women business owners. KeyBank provides financial solutions, networking opportunities and ongoing education to women-owned businesses through the Key4Women program.
 
For over 50 years KeyBank has been lending to women-owned businesses and watching them grow. In April 2007, Key announced that it would lend $2 billion to women-owned businesses over a five-year period. In April 2009 they met that goal, three years ahead of schedule, and are committing to lending another $3 billion by 2012.
 
Visit Maria's blog at www.key.com/mariaonmoney

On December 6, President Obama announced a tentative agreement with Congressional Republicans on a framework for tax cuts, which are set to expire at the end of this year. Additional steps include agreement by Democratic Congressional leaders on the deal and passage of legislation reflecting the agreement.  Details of the agreement include:

• A two-year extension for tax cuts instituted in 2001 and 2003 for all income brackets
• A two-year extension of the Earned Income Tax Credit, Child Tax Credit, and the American Opportunity Tax Credit
• A one-year 2% payroll tax cut for businesses that will go directly to employees
• 100% expensing for business investments in 2011
• Reforming the AMT
• A two-year extension of the R&D tax credit
• Setting the estate tax rate at 35% with a $5 million exemption for individuals and a $10 million exemption for couples
• An extension of unemployment benefits for an additional thirteen months

To see the President's announcement, please click here.