You want to Tweet from your phone? Update Facebook while waiting for you next appointment? Turn by turn navigationl? Your cellular phone bill that you negotiated with your company maybe acceptable for your budget, but do you know how much your are paying in taxes?
If you happen to live in the following ten States you are paying more that 80% of the country in taxes for your cellular service:
1. Nebraska: 23.69%
2. Washington: 23%
3. New York: 22.83%
4. Florida: 21.62%
5. Illinois: 20.90%
6. Rhode Island: 19.67%
7. Missouri: 19.28%
8. Pennsylvania: 19.13%
9. Kansas: 18.39%
10. Texas: 17.48%
What’s going on in Nebraska? Corn sales down? Washington—too much rain? New York…well it’s expected. Florida—all the retirees don’t use their phones enough? Illinois—it’s just part of the political landscape.
Scott Mackey is an economist and partner at KSE Partners located in Montpelier, Vt., and recently released the report titled, “A Growing Burden: Taxes and Fees on Wireless Service.” He writes, “Targeting wireless consumers disproportionately effects poorer families and may have ramifications for long-term state economic development and growth.
“Higher taxes on wireless service, coupled with increased taxes on wireless investments, may lead to slower deployment of wireless network infrastructure, including 4G wireless broadband technologies that increasingly mobile workforce relies on for economic success.”
It is time to get it together. We have one of the highest unemployment rates in years and we have industries including high-speed rail and the wireless companies that are ready to invest. Yet, we add on these taxes that get passed to the consumer to make it nearly impossible for future investment to help our weak economy.
At Liberty Tax, we can’t reduce your cell phone bill, but we can make sure that you don’t pay Uncle Sam more than he deserves. Come see us soon!
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.