The Tax Foundation reports that although competition in the wireless industry has reduced monthly bills, but that a rising tax burden has kept customers from realizing the full benefits. And Washington has the highest cell phone tax in the nation.
According to the report,
Wireless industry competition has led to significant reductions in average monthly bills from $46.44 per month in 2015 to $44.65 in 2016. Since 2008, average monthly bills have dropped from just under $50 per month to $44.65 per month – an 11% reduction – while taxes and fees have increased from 15.1% to 18.6% – a 23% increase. Unfortunately, consumers are not enjoying the full benefit of these price reductions because of the growing tax burden on wireless service. Taxes are growing at a rate twice as fast as average wireless prices have been falling.
Once again, consumers in the state of Washington pay the highest wireless taxes in the country, with total taxes and fees again adding more than 25% to the bill.
We just thought you’d be interested. For more perspective, please read the full report.