Cannon seeks parity in television taxing

WASHINGTON — Satellite television would be taxed the same as cable television, based on a bill Rep. Chris Cannon, R-Utah, has introduced in the U.S. House.

Cannon, along with House Judiciary Committee Chairman John Conyers, D-Mich., proposed a bill that would reduce taxes paid by satellite television subscribers to be the same as those who use cable.

"Quality of service, variety and cost to consumers should be the deciding factor in choosing a television service," Cannon said. "When the government favors one service over another, using the tax code, consumers and taxpayers always lose. Instead of playing favorites, we should level the playing field and let businesses compete for subscribers."

Six states have sales taxes on satellite television service, so DISH Network or DIRECTV customers pay higher taxes than cable customers, according to DIRECTV Inc. and EchoStar Communications Corp., which support the bill.

"Imposing taxes on one competitor and not the other is just not in the public interest because, as consumer groups who support more entrants in the video marketplace have said, it takes away from competition," the companies said in a statement.

Critics have said the bill would take away some revenue from states by lowering the satellite taxes.

Conyers has requested a Government Accountability Office study and plans to have hearings on the bill.

Cannon and Conyers are also co-sponsoring a bill to extend the Internet tax moratorium for another four years.

Cannon said he would rather make the ban permanent but said "extension is necessary to prevent the circling tax vultures from descending on American families."