Senator Kanavas rips proposed telecom tax

Madison, Wis. - April is “tax” month, and State Sen. Ted Kanavas is taking aim at a series of tax increases in the 2007-09 state budget proposed by Gov. Jim Doyle. The latest target is an increase in the phone tax that would raise an estimated $1.8 million in revenue.

Kanavas, who has proposed tax reductions as part of an economic package called Invest Wisconsin 2.0, said the tax will be portrayed as a tax on business and not the consumer, but ultimately the cost will be passed to consumers.

“Consumers are already paying the State of Wisconsin a 5 percent tax on their phone bill on top of the existing rate for the Universal Service Fund,” Kanavas said. “If this budget is passed as the Democrats have drafted it, families throughout Wisconsin will know who to thank for their higher monthly phone bills.”

The Universal Service fund is generated from a tax on the annual gross revenues of telecommunications companies that do business in Wisconsin. The fund is designed to expand telecommunications access and to provide Internet access to schools and libraries.

The tax increases are being proposed to help address a state budget deficit of $1.6 billion. Related stories

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• Doyle wants sales tax applied to digital downloads

• Kanavas outlines new Invest Wisconsin agenda

• Kanavas rips Doyle for “taxing Internet”