Wireless Taxes Keep Rising in USA

October 13, 2016 Taxation in USA

Taxes on mobile serviceWASHINGTON D.C. – While growing competition between wireless provides in the USA have pushed monthly bills downwards, the tax bill is negating the benefits for consumers.

Earlier this week the US think-tank the Tax Foundation issued a new report on the growth of taxes on wireless communication in the country, showing that the taxes are rising faster than the prices are falling.

According to the finding detailed in the report, approximately 18.6 percent of the typical monthly wireless phone bill faced by a consumer in the USA consists of various taxes and fees.

The current tax burden on wireless services is already 1.5 percentage points higher than it was two years ago, and 4.5 percent higher than a decade ago.

The Tax Foundation showed that since 2008 the average monthly phone bill has fallen from USD 50 per month to USD 44.65 per month, a reduction of 11 percent, however, in that same time period the taxes in the bill have risen by 23 percent.

The rapid rise in tax burdens is offsetting the price reductions brought about through intense competition among wireless service providers.

It is estimated that each year consumers pay out a total of USD 17.2 billion in taxes, fees, and surcharges for their wireless service.