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Wonderling Calls for Elimination of Double Tax on Cell Phones
HARRISBURG -- Sen.
Rob Wonderling (R-24) and Rep. Mario Scavello (R-176) joined with taxpayer
groups and business owners today to call for the elimination of the gross
receipts tax on cell phones.
The 5 percent gross receipts
tax is levied in addition to the state’s 6 percent sales tax, taxing
Pennsylvania consumers and businesses twice for cell phone service. These taxes
give Pennsylvania the eighth-highest cell phone taxes in that nation.
“This double-taxation harms the
state’s economy and hinders our economic development efforts across the
Commonwealth,” Sen. Wonderling said. “It’s time for us to eliminate this tax so
we can draw new businesses into the state and keep our existing businesses here
in our communities.”
According to an economic impact
study, the increased tax on cell phones has led to the loss of almost 2,400
Pennsylvania jobs. These jobs would have paid more than $117 million in wages
to Pennsylvania workers.
“Pennsylvania needs to create
an atmosphere that attracts these jobs,” said Scavello. “The more a state taxes
an industry, the less likely it is that they will decide to locate in a state.
We need to cut this tax while there is money in the budget to do so. Lower
taxes encourage high-tech investments in Pennsylvania that will bring in jobs
and lower the cost of doing business for many companies and governmental
entities.”
The gross receipts tax is
estimated to cost Pennsylvania businesses and consumers more than $225 million
each year. Since the tax was signed into law by Governor Rendell in December
2003, it has cost Pennsylvania more than $370 million in total economic
activity.
 
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Sen. Rob Wonderling, at podium,
joined taxpayer
groups, business owners and other legislators at a June 6 news
conference in the Capitol rotunda to call for the elimination of the
gross receipts tax on cell phones.
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