Average Taxes on Wireless Bills in California Reach a Record 18%
Average federal, state and local taxes and fees for California customers reached a record 18%, meaning that the government’s slice of your wireless bill is now at least twice as high as the state sales tax imposed on most other goods and services. . . Even though smartphones have become necessities and a crucial component of the digital economy, they’re still taxed in large part as a luxury item. . . In 1898, the federal government imposed a 3% excise tax on telephone use to help cover a face-off with Spain over the future of Cuba. Phones were relatively scarce at the time, so the tax was intended to be a levy on wealthy Americans.