Rising Universal Service Fund taxes on wireless services have added...
Rising Universal Service Fund taxes on wireless services have added 0.9 points to the 16.3 percent combined federal, state, and local taxes and fees that wireless customers pay, said Scott Mackey of KSE Partners on a teleconference on wireless taxes…
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Monday. In a report released Monday, Mackey said wireless consumers are now paying taxes, fees and government charges that exceed the levies on retail sales. He said the taxes are “disproportionately effecting” low and moderate income earners in America because many are “cutting the cord” and opting for wireless services and these taxes have a “huge impact” on them. They are also dampening service demand, Mackey said. According to the report, “states and local governments should study their existing tax systems and consider policies that transition their tax systems away from narrowly based wireless taxes and toward broad-based tax sources that do not distort consumer purchasing decisions and do not slow investment in critical infrastructure like wireless broadband,” Mackey said.