The tax amounts to 17.05% in federal, state and local cell phone. That's an average tax rate for states and local governments of 11.23% and 5.82% for Uncle Sam. That's also 200% the amount of taxes paid on other consumer goods and services. It's happens to be up from 15.27% in 2005, a growth rate that's 300% greater than taxes on other goods and services.
Why shouldn't state, local, and the federal govermnents stick it to cell phone users? Since they're not going to give their phones up any time soon, why not drain as much cash as possible out of the folks and create a steady revenue stream for the government?
The amount of those state-local cell phone taxes vary between states.
- Washington - 18.6%
- Nebraska - 18.48%
- New York - 17.74%
- Florida - 16.55%
- Illinois - 15.81%
- West Virginia - 6.15%
- Montana - 6.00%
- Idaho - 2.62%
- Nevada - 1.86%
- Oregon - 1.76%
The truth be told, those state-local taxes include 911 services. That's important and aren't cost free. Nationwide, the average tax for 911 service is 75 cents/month, with West Virginia charing $3/month and Missouri charging $0/month.
On this particular issue, where are the stormy petrils who routinely demand social justice and oftentimes attack the 1% for not paying their fair share of taxes? Taxes on cell phone users are regressive, disproportionately burden low-income families, the majority of whom only have wireless phone service.
Let the discussion begin...
To read the Tax Foundation report, click on the following link:
"Wireless Taxation in the United States 2014."