Bill sets fair tax for telecom services

To the editor:

As president of Associated Industries of Missouri, this state's leading business trade organization, it is my job to fight for legislation benefiting businesses and the people they employ. That's why AIM supports House Bill 209.

I commend the bill's sponsors, Shannon Cooper and Senator John Griesheimer, for creating a fair tax system that recognizes the changing nature of the communications industry. Pending litigation over vague tax laws threaten to increase the cost of telecommunication services across the state. With the lawsuits resolved and implementation of a statewide uniform telecom tax, consumers will avoid increased costs for phone service as a result of the legal dispute. Missouri cities will be able to share in the growth of telecommunications services, resulting in more funding for crucial services such as police and schools.

Most importantly, taxpayers will see a reduction in their phone bills. Some cities had attempted to institute taxes -- paid by the consumer -- of as much as 10 percent. Under the new legislation, city taxes will be approximately 3 percent for cell-phone users and a maximum of 5 percent for land-line users. This means every consumer of telephone services -- cellular and land line -- will ultimately see their tax bills reduced. With more reasonable local taxes, the industry will have additional money to invest in new technology. Once again, consumers will ultimately see the benefits.

I congratulate Missouri lawmakers for approving HB 209, protecting consumers and lowering taxes while making Missouri a friendlier place to do business.

GARY MARBLE, President,

Associated Industries of Missouri, Jefferson City, Mo.