I read an article in today’s WSJ about “free” cell phone services for the poor. These services are paid for through taxes on regular cell phone bills. The article inspired me to calculate how much my family spends on cell phone taxes and fees on a monthly basis. Here’s what I found:
For us, the $28.54 (roughly $342 per year) represents an 11.9% tax (we have four cell phones on our plan).
I found it kind of funny that the taxes and fees are broken down into two different sections. The first section is under “Credits, Adjustments and Other Charges” and the other section is called “Taxes.” You can put them in whatever section you want but the bottom line is they are taxes and fees.