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.