TY  - JOUR
AU  - Hausman,Jerry
TI  - Efficiency Effects on the U.S. Economy from Wireless Taxation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7281
PY  - 1999
Y2  - August 1999
UR  - http://www.nber.org/papers/w7281
L1  - http://www.nber.org/papers/w7281.pdf
N1  - Author contact info:
Jerry A. Hausman
Department of Economics
MIT, Room E52-271A
50 Memorial Drive
Cambridge, MA  02139
Tel: 617/253-3644
Fax: 617/253-1330
E-Mail: jhausman@mit.edu
AB  - This paper measures for the first time the economic efficiency effects of the taxation of wireless services, which are taxed by federal, state, and local governments at relatively high rates in the range of 14%-25%.  The paper concludes such taxes are a much greater drain on the economy than their direct costs.  The taxes identified in this paper cost the economy $2.56 billion more than the $4.79 billion they raise in tax revenues.  These taxes are raised from wireless consumers and thereby suppress demand for service, imposing an efficiency loss on the economy of $0.53 for every $1 currently raised in taxes.  Prospective taxes will impose an efficiency loss of $0.72-$1.14 per additional dollar of tax revenue raised.
ER  -