The Federal Communications Commission ruled against a recent California proposal that would impose a tax on text messages this week; setting the stage for a legal showdown between the Golden State and the federal government.
The decision by the FCC officially designated text messages as “information services” and not “telecommunications services,” essentially prohibiting the state government from taxing the exchanges.
“We hope that the [California Public Utilities Commission] recognizes that taxing text messages is bad for consumers,” said a representative of a group supporting the US wireless communications industry. “Taxing this service would burden those who rely on and use this service each and every day.”
The proposal seeks to raise funds through the new tax to help provide the state’s low-income residents with greater access to cellular communications and other devices.
“Sometimes we just don’t need a new tax for every idea that a government agency or official has,” said the CEO of the Silicon Valley Leadership Group.
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