Why are we so heavily taxing what we should be encouraging?
In 2019, Americans spent 3.1 trillion minutes talking on cell phones and sent over 2.1 trillion text messages, a considerable increase from the 52 billion texts sent in 2018. Despite our dependence on wireless cell service, the industry remains one of the most heavily taxed by both state and federal governments. The Tax Foundation estimated that in 2019, “wireless consumers will pay an estimated $17.1 billion in taxes, fees, and government surcharges to federal, state and local governments,” a billion-dollar increase from 2018.
The revenues raised through taxes on wireless plans dwarfed the $10 billion raised by the sale of alcoholic beverages in 2019. Substantial taxes on wireless plans place a financial burden on consumers, particularly lower-income Americans who are more dependent on wireless services and contribute to the digital divide.
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