Taxalicious!
First of all, this tax will be on the companies doing business, not on individual cell phone users. It is not a direct tax on consumers. Yes, the cell phone companies will undoubtedly pass the fee along to cell phone users, all 4,600 of them here in town. Total cost per cell phone user: $30 per year. Wow! That $2.50 per month is sure going to break the budget for those earning enough to pay for subscription cell phone service!
That's really the rub. Cell phone service is not a necessity, though some people seem to be permanently attached to theirs. It's a luxury item, one that requires infrastructure such as cell phone towers, and is also drawing revenue from the city coffers that would otherwise be earned through traditional phone service. It's a fair tax and not worth all the moaning and groaning.
In similar tax news, Teresa Novak of the Gazette-Times recently wrote an opinion piece supporting Republican State Senator Frank Morse's call for a sales tax and reduction in income tax. Sales taxes unfairly penalize the portion of the population least able to pay. While those who earn a comfortable living are able to save a more significant portion of their income, thus avoiding a sales tax, the lower and low-middle classes must spend a larger percentage of their take-home pay, meaning that a larger percentage of their income is taxed than those earning significantly more. Some, like presidential candidate Michael Smith, suggest a sales tax refund for those earning below the poverty limit. This would force people below the poverty limit to pay throughout the year, then wait for the refund later. Do you know many people earning $14,000 annually (using Oregon's minimum wage) who can do without those few hundred dollars during the year? That can mean the difference between having a car that runs and hoping you don't need a ride to the hospital in the middle of the night.
Oregon's progressive income tax makes sense, as I believe that those who can afford to pay more should pay more, and the lack of sales tax encourages people to spend more money. That is a much bigger boost to the local economy than the sales tax would be.