What’s the deal with wireless/cellphone taxes in America?

6 comments

1. I guess? They’re just included as part of your cell phone bill, you don’t really notice them as a separate thing.

2. Why wouldn’t you? Don’t countries with a VAT on cars also charge tax/vat on gasoline? Do you pay tax on electricity?

3. a sales tax on a good and an excise tax for a ongoing service are two different things. Also like all things American they very by state

4. When you pay your phone bill ¬– depending on the state you live in – you may also be funding local, state and federal governments, school districts and emergency services.

   The high wireless tax started back in the days when cell phones were relatively new, and the government used the high tax money to pay for landline service for rural areas. Today, 5.82% of your wireless bill still goes to the Federal Universal Service Fund, which used to pay for those rural telephone services.

5. If I’m not mistaken, part of that goes to the Federal Universal Service Fund that helps low income/rural/disadvantaged people with phone bills and access to telecommunications.

6. The taxes are on the service plan, not the device. These very greatly by location (phone billing address, typically). These taxes fund 911 service, subsidize service to otherwise unprofitable areas, or just plug a hole in the local budget (looking at you, Chicago).