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story category Senators Seek To Ban Cell Phone Tax Increases
You're already paying twice as much in wireless taxes as for other goods
02:40PM Saturday Jul 12 2008 by KathrynV
tags: prices · business · wireless · legislation
Did you know that the average tax rate that you pay for wireless phone and data services is more than twice that which you pay for nearly all other goods? The tax rate on wireless services is close to 16% when state, local and federal taxes are all factored in; this is considerably higher than the 7% tax rate on most other goods. And the situation could get worse as there is currently nothing stopping the tax rate on wireless services from going up. However, there are at least two senators who have proposed a five-year ban on additional increases to the tax rate on wireless services. Dubbed the Mobile Wireless Tax Fairness Act of 2008, it is designed to reduce fears that the cost of all services and goods are going to spiral out of control. The bill could theoretically be passed by Congress in this session but is unlikely to go through because of the strong opposition facing it.

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Forums » Senators Seek To Ban Cell Phone Tax Increases
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hayabusa3303
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only 5 year ban

Big deal after the 5 yr deal is up then the wireless company's will screw the public that much harder in the end.

TK Junk Mail
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Re: only 5 year ban

said by hayabusa3303 See Profile :

Big deal after the 5 yr deal is up then the wireless company's will screw the public that much harder in the end.
The companies don't levy taxes - governments do. Put your ire where it belongs - with the pols.
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Skeedatl
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Re: only 5 year ban

The companies have their own bullshit fleecing of customers; "regulatory recovery" fees.

n1zuk
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Re: only 5 year ban

That's right. TelCo likes to charge "fees" to reimburse themselves for the taxes they pay.

The Government doesn't like when people muscle in on their geese that they fleece. The TelCo better play nice, or they'll be swimmin' with the fishes.
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Skeedatl
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Re: only 5 year ban

I'm just wondering who I get to fleece in order to pay the taxes I pay.

dvd536
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said by Skeedatl See Profile :

The companies have their own bullshit fleecing of customers; "regulatory recovery" fees.
Amongst others.
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Kearnstd
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Re: only 5 year ban

said by dvd536 See Profile :

said by Skeedatl See Profile :

The companies have their own bullshit fleecing of customers; "regulatory recovery" fees.
Amongst others.
CEO Golden Parachute Fee
Regulatory Recovery filing fee

Telecom is the master of inventing fees for things the government doesnt yet tax. and if the tax is eliminated/lowered it is more then likely replaced by a fee.

personally think fees are total bullshit, just tell me what im going to pay before percent based government taxes.
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Maggs
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edit:
July 12th, @03:11PM

Companies and government give a royal screwing in unison. My tax rate on my old contract cell service with T-Mobile was 21% of the bill. It made a $39.99 service, $50 . I'm now on prepaid and it's way cheaper like $40 cheaper per month.
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quatrix

join:2005-02-11
Davie, FL
Come on man, you're killing the anti-business buzz with logic.

mrchris
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Re: only 5 year ban

said by quatrix See Profile :

Come on man, you're killing the anti-business buzz with logic.
Screw big business.
DoRight

join:2007-07-20
Mechanicsburg, PA
Then why lately (Last 12 months) have we seen carriers adjusting the taxes on bills. Meaning I think they have added a few extras to what the gov already warrants..

mrchris
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North Babylon, NY
Why not make it permanent? Those monkeys in Congress almost never get it all properly done.

pnh102
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Impressive

Democrats proposing a tax cut? It must be an election year.

Skeedatl
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Re: Impressive

Actually looking at the article it's Democrat (no S), since the other Sen. is a Republican.

We'll see how far this gets. With Congressional approval ratings in the single digits, by far the lowest in history, they may be motivated to do something other than sit on their hands.
quatrix

join:2005-02-11
Davie, FL

said by pnh102 See Profile :

Democrats proposing a tax cut? It must be an election year.
No, Democrats have to preserve taxes to pay for government spending. Republicans spend even more but pay for it with imaginary money (which our future generations will be responsible for).

pnh102
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Re: Impressive

said by quatrix See Profile :

No, Democrats have to preserve taxes to pay for government spending.
Well I am glad someone is putting the needs of the government ahead of everyone else.
said by quatrix See Profile :

Republicans spend even more but pay for it with imaginary money (which our future generations will be responsible for).
You're right. I remember after the Democrat party took over Congress it immediately balanced the budget and started paying down the national debt that the Bush regime ran up. I am so glad the country is now fiscally solvent.
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Mike
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Re: Impressive

That's because the president won't pass anything and nothing can get done.

There is still another (R)oad block, at least for a little while longer.

pnh102
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edit:
July 12th, @03:46PM

Re: Impressive

said by Mike See Profile :

That's because the president won't pass anything and nothing can get done.
LOL you really believe the Democrats will balance the budget?

Even B. Hussein Obama admits he doesn't think it can be done.

»www.suntimes.com/news/politics/o···307.stng

Yes we can?
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Combat Chuck
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Re: Impressive

said by pnh102 See Profile :

Even B. Hussein Obama admits he doesn't think it can be done.
Bullshit. Sunshine, lollipops, good feelings, and change will clearly make the debt disappear.
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Re: Impressive

said by Combat Chuck See Profile :

Sunshine, lollipops, good feelings, and change will clearly make the debt disappear.
You forgot "rainbow unicorns"...
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EPS

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said by pnh102 See Profile :

Democrats proposing a tax cut? It must be an election year.
It's not a tax "cut", it's a "promise" to not raise taxes.

Of course, should they decide that new taxes are needed, the tax bill will simply have to contain a clause nullifying this act... a useless bill that sounds good? Must be an election year.

pnh102
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Re: Impressive

said by EPS See Profile :

said by pnh102 See Profile :

Democrats proposing a tax cut? It must be an election year.
It's not a tax "cut", it's a "promise" to not raise taxes.
Point.
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RR Conductor
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said by pnh102 See Profile :

Democrats proposing a tax cut? It must be an election year.
Republicans proposing help for the middle and lower classes? It DEFINITELY must be an election year.

pnh102
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Re: Impressive

said by RR Conductor See Profile :

Republicans proposing delivered help for the middle and lower classes? It DEFINITELY must be an election year.
Fixed it for you.

Thanks to GOP tax policies, the top 1% of income tax payers pay almost 40% of all the income tax paid. The top 5% pay almost 60% of all federal income tax. The top 10% pay a little over 70% of all federal income tax. The top 25% pay almost 86% of the the federal income tax. The top 50% of earners pay almost 97% of all federal income tax.

»www.irs.gov/pub/irs-soi/05in05tr.xls (line 174)

Anyone who suggests that the middle and lower classes pay any appreciable tax is always completely and totally mistaken, or is lying. The IRS confirms it.
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MisterMarcus

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Re: Impressive

said by pnh102 See Profile :

said by RR Conductor See Profile :

Republicans proposing delivered help for the middle and lower classes? It DEFINITELY must be an election year.
Fixed it for you.

Thanks to GOP tax policies, the top 1% of income tax payers pay almost 40% of all the income tax paid. The top 5% pay almost 60% of all federal income tax. The top 10% pay a little over 70% of all federal income tax. The top 25% pay almost 86% of the the federal income tax. The top 50% of earners pay almost 97% of all federal income tax.

»www.irs.gov/pub/irs-soi/05in05tr.xls (line 174)

Anyone who suggests that the middle and lower classes pay any appreciable tax is always completely and totally mistaken, or is lying. The IRS confirms it.
No, the IRS only output numbers. It did not adequately define "middle" class. Likewise, "Middle" class changes from state to state, coast to coast, city to city, even down to the subcommunity level.

Looking at San Diego CA, if I wanted to show measurable income stats, technically "middle class" would be about $300,000/year. That's because of places like Eastlake and Rancho Santa Fe, as well as some downtown central areas where the living arrangements are in the millions of dollars. But that's not accurate is it?

Take Fort Smith Arkansas. "middle class" out there is likely to be about $30-35k/year. That's because it doesn't cost nearly as much to get by as it does in other areas.

Classes are determined by (a) the money you make vs. (b) the money you have to spend to get by. Not one or the other. You have to consider both.

That said, the IRS figures are inflated. Of course 50% of taxpayers pay 90% of the taxes; Look at all of the people who don't file. Look at all the people who are unemployed. Look at all the people who file falsely. If EVERYONE with a source of income...any income: gambling, use tax, etc etc etc...filed their tax forms properly, that percentage would drop sharply. Guaranteed.

pnh102
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Re: Impressive

You can quibble all you want, but the IRS is the supreme authority when it comes to income taxes in this country.

If you want to challenge the IRS in the way it computes statistics, go right ahead.
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beck
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They won't call it a tax

If any gov wants to add more taxes, but this bill would pass, they would just call it a fee instead of a tax and get their money anyway. You can't stop any gov body from screwing the people.
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N3OGH
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HEY, that's a stolen anvil!!

KathrynV, I'm calling out a thief!

You stole that tax anvil from my local Pennsylvania school district's property tax department!!!
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NOZIREV

join:2008-07-10
New Bedford, MA

IMO

all the politicians have an agenda and i dont think that it is to help the middle class. as for wireless services tax rate being so high i am all for anyone that will do something about it.

jeffster1970
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Little confused...

How are all these taxes factored into a typical cell phone bill?? 16% seems rather high, does that include access fees (which may actually not be a tax) and a 911 fee (Which might be considered a local tax??).

Just saying, here in 'tax them 'til they die' Canada, typical bills will include a 911 fee ( 50 cents, on bill it's not listed as a tax ) and a $6.95 system access fee, the cellular provider spells it out that this is NOT a tax, just a money laudering scam. Taxes are 5% for the Feds, and between 0% and 8% for the provinces (i could stand corrected on this one). So, for me, it's 13% total.

I find it odd that Canada's taxes would be lower, and was wondering how they came out with the close to 16% average.
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TrainBuff
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Taxes & Fees

You should see the fees and taxes on my Verizon cell bill.
There is a Verizon Wireless Surcharge which consists of the Fed. Universal Service Charge, Regulatory Charge, Administrative Charge & the Gross Receipts Surcharge. And then there is the New York State E911 Fee, Erie County 911 Surcharge, New York State Sales Tax and the Erie County Tax.
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jeffster1970
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Re: Taxes & Fees

Click for full size
$6.95 is not a gov't fee.
Crap...thought I was being ripped.

Local sales tax, not sure where and/or /if/ that even happens in Canada.

Hopefully y'all have some good outta all those taxes..
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moonpuppy

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Hopeful

Maybe they can tell Baltimore City to stop taxing each cell phone line at $3/line.

viperpa33s
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No oversight

We need to make it harder for our government to raise taxes. Right now there is no oversight, so politicians raise taxes without regard of the outcome. You think with all the taxes that are collected, we would be great shape. As we can see, taxes does nothing but bring us more debt. That debt is a excuse to raise even more taxes.

Will it ever end?....Hardly. Just as long as people want the freebies, then we will never escape. People who do want the freebies have no right to complain when taxes are raised to pay for them.

See 6 replies to this post

ajtroglio

join:2000-04-20
Saint Louis, MO

Enough w/ the taxes, fees and surcharges.

Here's Missouri's way of taxing their customers. They get Verizon to call it a "surcharge" and then Verizon has to pay the city. This is nothing more than a money extraction scheme and I'm not really sure what it gets me.

Notice the ones paying OVER 10% for the luxury of using a cell phone. St. Louis City was over 11% for a long while but has since gone down. We pay other taxes to make up for that.

»www.verizonwireless.com/b2c/foot···ties.jsp
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benc
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Hm....

Info from most my most recent Bills:

My Verizon Mobile Family Plan:

$94.96 - Four Lines, 700 minutes, $5 insurance on one phone.
=======
$5.76 - Fees, not Taxes
$14.68 - Taxes, not Fees
=======
$116.89 - Grand Total

That's 6.07% in fees, and 15.46% in taxes, or 21.53% total.

AT&T Home Phone:

$50 - Unlimited Domestic Talk, Plus a bunch of features
$5 - To get cheaper International Rates
=======
$55 - Subtotal: Pre-Tax

$9.36 - Fees, not Taxes
$7.98 - Taxes, not Fees
=======
$72.34 - Grand Total

That's 17.0% in fees, and 14.5% in taxes. That's 31.5% overall.

Charter Internet:

$66.99 - HSI, 1.5M/256k, Static IP
$0 - Taxes and Fees
====================
$66.99 - Grand Total

NOTE: I already know that price isn't a particularly good value, so you don't need to get on me about it. I plan to change this soon. I already know that I can get 10/1 for $110 (1yr) or $120 (mo-to-mo).

Very interesting, overall. It looks like it's not just the mobile companies who are lousy about fees and taxes. The fees and taxes are bad on POTS as well. While taxes on POTS are better, the fees are worse.

If they're going to clamp down on the mobile phone companies, they should also clamp down on POTS as well.

I'm just thankful that there's no broadband tax here, so what Charter says I'll pay, is what I in fact do pay.
travelguy

join:1999-09-03
Albuquerque, NM

Try Rental Car Taxes...

The only think worse than phone taxes are rental car taxes & fees. They frequently exceed 25% in many cities.
benc
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Re: Try Rental Car Taxes...

said by travelguy See Profile :

The only think worse than phone taxes are rental car taxes & fees. They frequently exceed 25% in many cities.
Hotel/Lodging Taxes are also bad.

Once, I stayed a couple nights in Madison, WI for a convention, and the rate was 13.5%. That's far higher than the local sales tax.

Taxpayer Joe

@verizon.net

Re: Try Rental Car Taxes...

said by benc See Profile :

said by travelguy See Profile :

The only think worse than phone taxes are rental car taxes & fees. They frequently exceed 25% in many cities.
Hotel/Lodging Taxes are also bad.

Once, I stayed a couple nights in Madison, WI for a convention, and the rate was 13.5%. That's far higher than the local sales tax.
Last year, our city council raised the bed tax from 12% to 14%.

The reason given by our brilliant representatives?
(Drumroll please...)

"It hasn't been raised recently."

I kid you not.

Down the road, at our major-city airport, the rental-car tax can exceed 100% of the rental charges.

The concept is simple. "Soak the tourists."
Sounds like taxation-without-representation to me.
Didn't we fight (and win) a war over that about 230 years ago?
benc
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Re: Try Rental Car Taxes...

said by Taxpayer JoeThe concept is simple. "Soak the tourists."
Sounds like taxation-without-representation to me.
Didn't we fight (and win) a war over that about 230 years ago?
[/BQUOTE :


You're exactly right. The idea is that it's supposed to be popular, as it's a way to raise city revenue without taxing the local population.

The worst part is that it probably won't make a huge difference in demand, because when people visit, it's usually a one time deal, or a few times.

It's sometimes counterintuitive though. My hometown, Bloomington/Normal, IL passed a restaurant only tax of 2%. It's a tax that everyone there pays, the residents and the tourists. It's not enough to make people travel out of town, but enough to annoy. The result is that some people who travel through B-N decide that they'll eat lunch and dinner in other towns along the way.
tmc8080

join:2004-04-24
Floral Park, NY

Lockbox

Now you know why handset makers are blocked from putting wifi into cell phone handsets.. they want to cripple VOIP over wifi. However, if cell phone makers leave this vacuum... PDA & PMP makers will fill the gaps. Either way, cell phone subscriber base is due for a major correction!

meh37

@verizon.net

Up, up and away

"...it is designed to reduce fears that the cost of all services and goods are going to spiral out of control"

Too late.

NappyD

Average contract cost per customer to AT&T

The average cost for an at&t mobility customer's cell phone service is just 2 cents per year. Yet people are already paying something like 35 cents per minute for service anyway.

So this tax is going to make a difference? Yeah, right.

disconnected

@snet.net

What Evils be Attached to this Bill?

I just wonder what secondary and sereptitious legislation may be attached to this "desireable" bill... more spying on US citizens perhaps?

momcat1
No Relation To The Bobcat

join:2002-10-21
Wappingers Falls, NY
·Optimum Online

tax rate freeze for wireless

The combined rate in New York State has been over 22% for 7 years. While that is bad, landlines in New York state have been over 24% for the same period. Too bad they are only talking about a freeze and not a cut. That's what we really need, is a tax cut. And that would include the taxes that the provider claims are 'not a tax'. Who's policing these idiots, anyway?
Forums » Senators Seek To Ban Cell Phone Tax Increases


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