High Cellphone Bill? Could Be Taxes – Washington’s 2nd Highest in Nation!
The Tax Foundation has released a study showing we pay the second-highest wireless service taxes and fee rates in the entire U.S.
While the average state and local rate is about 11.36%, Washington logs in at 18.62% behind only Nebraska at 18.67%!
You Oregonians are lucky. The Tax Foundation study showed Oregon has the LOWEST such rates, at 1.85%, and Idaho not far behind at 2.28%.
When you combine the federal rate with what we are charged locally and at the state level, our tax rate on our cellphones comes to a whopping 24.44!
The obvious question is, why are we getting whacked? The Tax Foundation says it’s the result of local and state surcharges that have been added to our bills by legislators.
Over the last five years, households (families) that do NOT have a landline has risen to 34%, and for all individuals over the age of 18, cellphone-only use is approaching 50%. Some experts says it’s actually above that, closer to 54. They say as future generations continue the technology and digital boom, by the year 2020, it’s possible 3/4 of Americans won’t have a landline.
Local and state governments haven’t missed this growth, and have targeted the wireless industry across the country with increased taxes and fees to feed the growth of government.
So the next time you get your cellphone bill, know that nearly $.25 of every dollar on that bill is taxes!