The Tax Foundation released their annual report detailing trends for wireless taxes and fees throughout the country since the previous year. If you or someone you know owns a wireless device (and we’re guessing you do) here are the top 4 key takeaways that you should know about:
1. Your phone bill is actually lower.
For 10 years, monthly wireless bills have steadily dropped due to healthy competition amongst wireless providers. However, wireless taxes and fees have increased by 44 percent to the average bill in that same timeframe. This makes it challenging for consumers to reap the benefits of competitive prices.
2. Spikes in wireless taxes marginalize low-income adults.
By the end of 2018, 57% of all adults relied solely on wireless to communicate. That number is even higher for low-income adults, of which, 67% rely on wireless to stay connected. Spikes in wireless taxes and fees burden low-income consumers seeking access to affordable mobile communication.
3. Fees are even more burdensome for families with multiple subscriptions.
The report also revealed that an American household with four wireless phones paying roughly $100 per month can expect to pay around $260 per year in wireless taxes, fees, and surcharges. That’s up from $229 in 2018!
4. You could be paying significantly more on wireless taxes and fees based on where you live.
People living in Illinois, Washington, Nebraska, and New York are paying the highest rates in the country on combined federal, state, and local charges. Folks in Delaware, Nevada, Idaho, and Oregon on the other hand pay the least in these combined rates.
See how your state ranks on the map below:
Overall, it is important for consumers to pay close attention to their wireless bill and notice the difference between charges and federal, state, and local taxes and fees. ACTwireless is dedicated to keeping consumers updated on potential polices that could impact your wireless experience. Make sure to sign up and opt-in for e-mail updates on this issue!