Big telecom firms make millions from cramming fees, senator says

[Trumplestiltskin 5,791]

If a company charges you for something why do you need the government to dispute it for you?

It's sickening that we're so incapable of handling our own problems that we now call upon the government for more regulations in every aspect of our lives. Don't like what the bank charges you? Call Uncle Sam. Don't like the fees the credit card companies charge? Enact legislation to set a maximum rate. Don't like the way the phone company does business? Ban it!

Why can't we do this without government's interference?

If an industry behaves duplicitously and if you can't vote with your wallet because you are a captive market, the government is going to have rather more success in addressing the problem than you are.

[lostinblue 1,989]

10 states with astronomical cell phone taxes

Nebraska tops the list, with total taxes of 23.69%. Oregon has the lowest rate, 1.81%.

The average U.S. wireless customer pays taxes and fees of 16.26%, says the Tax Foundation, with state-local charges accounting for 11.21% of that overall amount.

Worse, the Washington, D.C.-based tax research group found that state and local governments often hide or obscure the fees. In fact, my home state of Texas even sued Sprint because the company listed a state tax as a line-item in its bill, rather than hiding it from customers.

So where does your state rank on the cell phone tax list?

Nebraska is the biggest cell phone taxer. Its combined federal-state-local average tax rate is 23.69%. Four other states -- Florida, Illinois, New York and Washington -- have total cell phone tax rates of more than 20%.

Here are the top 10 highest cell phone taxing states, with their combined average federal, state and local cell phone tax rates:

Nebraska, 23.69%

Washington, 23%

New York, 22.83%

Florida, 21.62%

Illinois, 20.90%

Rhode Island, 19.67%

Missouri, 19.28%

Pennsylvania, 19.13%

Kansas, 18.39%

Texas, 17.48%

Overall, 23 states and the nation's capital have average state-local wireless taxes and fees in excess of 10%.

Cell phone users are overtaxed relative to consumers of other goods, and at risk of double taxation," writes study author and Tax Foundation Director of State Projects Joseph Henchman. "Additionally, the wide number of taxing authorities and the wide variety in rates makes tracking problematic and burdensome."

http://money.msn.com/tax-tips/post.aspx?post=35783e46-3f18-4676-a6fc-b81f55b113ea

Edited July 14, 2011 by lostinblue

[slim 1,514]

If an industry behaves duplicitously and if you can't vote with your wallet because you are a captive market, the government is going to have rather more success in addressing the problem than you are.

Are you a captive market for cell phone services?

Last time I checked, you didn't need to have a cell phone.

10 states with astronomical cell phone taxes

Is a cramming fee a tax?

What the government charges is completely different than what the company charges. I fully agree, people should be upset that the government charges so much for cell phones.

[Trumplestiltskin 5,791]

You don't *need* a lot of things slim, but most people consider a cell phone essential to modern daily life. You're being obtuse.