On the Issues
In many states, taxes and fees on wireless service are excessive and they continue to rise. Over the past decade, wireless taxation increased at a rate seven times faster than the rate on other taxable goods and services. And, because wireless taxes are often regressive, they hit seniors, minority communities, working families and small businesses especially hard.
On average, we now pay more than 21 percent in combined state, local, and federal wireless taxes and fees on our cellphone bill. That’s more than double the average sales tax rate of nearly 8 percent paid on other goods or services.
Policymakers must stop trying to balance budgets on the backs of wireless consumers. Excessive wireless taxes hurt everyone, but have a greater impact on seniors, minority communities, working families, and small businesses.
What We Want
Governments need to act to reduce excessive and discriminatory taxes on wireless consumers.