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The Hidden 17% Tax: Your Cell Phone Bill

How Much You Pay in Wireless Taxes - RF CafeWhen you read or hear news stories about the total amount of taxes you pay, the number can seem unreasonably high until you account for payroll (federal, state, local), standard point-of-sale (state, local), special PoS (cigarette, gas, appliance disposal), utilities (electric, phone, heating fuel, water), and multitudinous other hidden taxes. Per CNN today: "Your wireless carrier isn't the only one pocketing money when you pay your cell phone bill. Local, state and federal governments, 911 systems and even school districts tack on taxes and surcharges to your wireless bill that end up costing American cell phone customers an extra 17.2%, on average, according to the Tax Foundation. That's up from 16.3% fifteen months ago."


My home state of Pennsylvania reportedly has a tax rate of 20%. I only use a prepaid TracFone that costs about $64 (including sales tax) and give 1,000 minutes. After three years of use and refilling the card (twice), there are still more than 2,500 minutes left - that's how little I use a cellphone. It is only turned on during long road trips. If it weren't for being able to track my credit card purchases and Internet usage, the Fed would know very little about my personal habits. Well, I suppose they can get my 2011 Jeep Patriot computer record, too.

Pennsylvania Wireless Services Tax of 20% - RF Cafe







Posted  7/10/2013
 

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