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1 Scott Mackey & Ulrik Boesen, Wireless Tax Burden Remains High due to Federal Surcharge Increase 1 (2020)

handle is hein.taxfoundation/wltbnrs0001 and id is 1 raw text is: 




       s -                  Wireless Tax Burden Remains High

 F*UNATON                    Due to Federal Surcharge Increase



 FISCAL                     Scott Mackey                      UIrik  oesen
 FACT                       Managing Partner,                 Senior Policy Analyst,
 No. 732                    Leonine Public Affairs LLP        Excise Taxes
 Nov. 2020


                            Key Findings

                                 A typical American household with four phones  on a family share plan,
                                  paying $100  per month for taxable wireless service, can expect to pay about
                                  $270  per year in taxes, fees, and surcharges-up from $260 in 2019.

                                 Nationally, these impositions make up about 22.6 percent of the average
                                  bill-the highest rate ever. Illinois has the highest wireless taxes in the country
                                  at 32.2 percent, followed by Arkansas at 30.0 percent, Washington at 29.7
                                  percent, Nebraska at 29.1 percent, and New York at 28.6 percent.

                                 Since 2008, average monthly  wireless service bills per subscriber have
                                  dropped  by 26 percent, from $50 per line to about $37 per line. However,
                                  wireless taxes have increased by 50 percent, from 15.1 percent to 22.6
                                  percent of the average bill.

                                 At the end of 2019, over 67 percent of low-income adults had wireless
                                  as their phone service, and 58 percent of all adults were wireless-only.
                                  Excessive taxes and fees, especially the very high per-line charges, impose a
                                  disproportionate burden on low-income  consumers.  In Chicago, a family with
                                  four lines of taxable wireless service paying $100 per month is subjected to
                                  over $500  per year in taxes and fees.

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