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Thursday, January 17, 2013

Unfair wireless taxes irk consumers

Between federal, state and local taxes and fees, American wireless consumers are paying nearly two and a half times more in taxes and fees (17.1%) than the average sales tax rate (7.3%) applied to other taxable goods and services. And unfortunately, taxes on wireless service are constantly on the rise.

The 2012 National Tax Survey found that while wireless phone users are highly satisfied and view wireless services as essential, they are dead against increasing or adding new wireless taxes and fees. An overwhelming majority of those surveyed support a Congresssionally mandated 5-year freeze on all new wireless taxes and fees. The majority prefers creating federal guidelines that establish a fair and consistent tax for online digital download purchases.

One-quarter of those surveyed reported having no idea of what they’re paying in wireless taxes and fees. The average answer of those who guessed at what they are paying was 9.9%, which is significantly lower than the current national average of 17.1%. Additionally, more than 4 in 5 (84%) of respondents said that a combined rate above 17% for wireless services is way too much. An overwhelming 98% said the tax rate on wireless services should be the same or less than the taxes they pay on general goods and services, which is approximately 7%.

Click here to review the survey results. 

( is a nonpartisan non-profit advocacy organization, made up of wireless consumers, businesses and community leaders from around the country, supporting reasonable pro-consumer wireless policies. It is a project of CTIA-The Wireless Association.)