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Saturday, October 11, 2014

Up to 35% of Your Cell Phone Bill May be Taxes

Ever try make sense of your cell phone bill? Good luck with that.

Not only will you see 9-1-1 fees, you'll also find franchise taxes, utility sales taxes and mysteriously named surcharges like the MCTD, TRS or PUC.

On average, customers pay 17.1% of their bill in federal, state and local taxes and fees. But in some states, the average charges can run as high as 24% of the bill, according to a new report from the Tax Foundation.

Some city residents, meanwhile, end up paying even more: Up to 35%, thanks to per-line fees and other charges.

All in, wireless customers end up paying tax and fee rates that are about twice as much as the average sales tax rate on other goods and services, the Tax Foundation found.

Here's how it breaks down: First, there's the 5.82% federal charge, which is part excise tax and part Universal Service Fund charge.

After that, how much more you pay depends on where you live.

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2 comments:

Anonymous said...

Taxed to pay for Obamaphones!

Anonymous said...

October 11, 2014 at 10:34 AM
Yup your right. Taxpayers has to pay for the lazy bums who doesn't want to work's phones. Also guess what Obama wasn't the one who made that, it was Bush who was before him but they weren't as needed as much as now. Thanks Obama.