Cellphone Taxes Weigh Down Americans

January 30, 2013 Taxation in UK

AT+TLegacyWASHINGTON D.C. – Cellphone users in the US are facing exorbitant taxes which skew the marketplace and slow down investment into the market.

In a new report released on January 30th the Tax Foundation detailed the taxes faced by cellphone users, showing that consumers in the US pay an average of 17.18 percent tax on their cellphone bills.

According to the Tax Foundation nearly 34 percent of households in the US no longer use a landline and rely solely on cellphones, and this growing trend means that taxation of cellphones is becoming an increasingly pertinent issue.

Currently cellphone users in Nebraska face the highest tax liability on their cellphone bill, paying out a combined total tax rate of 24.49 percent, while users in Oregon pay the lowest rate in the country at 7.67 percent.

The Tax Foundation claims that state tax authorities “…favor cell phone taxes because they can raise revenue in a relatively hidden way.”

Commenting on the taxation of cellphones, the Tax Foundation said “…state and local governments should not single out one product for stealth tax increases as they are doing with wireless services. Such actions distort market decisions and risk slowing investment that contributes to economic growth.”

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