Growing Tax Burden on Wireless Service Points to Need for USF Reform: FSF
A new Tax Foundation report puts additional pressure on policymakers to address the USF contribution factor, Free State Foundation President Randolph May said Wednesday in a blog post. The report, released last week, found that the average household with four phones on a “family share” plan pays $100 per month for taxable wireless services and more than $330 per year in taxes, fees and government surcharges.
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“Taxes, fees, and government surcharges make up a record-high 27.60% of the average wireless services bill,” the report said. Illinois residents pay the highest wireless taxes in the U.S. (38.32%), followed by those in Washington (34.98%) and Arkansas at (34%).
USF charges make up 13.36% of the average wireless services bill, May wrote. “Wireless taxes, fees, and surcharges are regressive and disproportionally adversely impact low-income families,” he added. “That should be reason enough for state and local taxing authorities, and the federal government with regard to the USF fee, not only to halt the upward trend but to act to substantially reduce the current tax burden on wireless consumers.”