We’re Paying 17 Percent in Cell Phone Taxes?!

You might not realize it, but wireless customers (91 percent of Americans) are taxed excessively, according to a new report from the Tax Foundation, Wireless Taxation in the United States.  On average, taxpayers are hit with a rate of more than 17 percent in combined federal, state, and local taxes and fees on their cell phone bills. That’s more than twice the average sales tax rates applied to most goods and services. As you can see, wireless taxes fell after 2005, but have been on the rise ever since:

Also helpful in the report is a list ranking states on their wireless tax rates. The top five highest? Washington, Nebraska, New York, Florida, and Illinois. And the five lowest? Oregon, Nevada, Idaho, Montana, and West Virginia.

Once again, the Tax Foundation has created an immensely helpful resource that illustrates just how lawmakers are able to tax us – sometimes without our knowledge. At NTU, we won’t stop beating the drum for lower tax rates across the board, including these stealthy wireless taxes. Be sure to share with your friends – this certainly isn’t a tax issue that Americans are very familiar with. We need to spread the word!