The hidden 17% tax: Your cell phone bill

cell_phone_cut_costs-11359424Does anyone else wonder what those extra taxes on your cellphone bill come from?  According, to the Tax Foundation Local  state and federal governments, 911 systems and even school districts tack on taxes and surcharges to your wireless bill that end up costing American cell phone customers an extra 17.2%, on average.  Every American today pays 5.82% of their cell phone bill to the federal Universal Service Fund, which originally paid for those rural phone services.

People get taxed at least $10 extra on their bill and this does not seem fair.  Taxes on wireless cellphone services used to be for the upper class but now that everyone has a cell phone, everyone has to pay extra.  Wireless taxes have long been a fairly frictionless way for states and cities to get revenue,” said Jot Carpente.  It seems like there is no way of escaping these high taxes.

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