CHICOPEE, Mass. (WWLP) – A new report from the Tax Foundation found U.S. residents are paying a combined average rate of 18% in federal and state taxes.
So the typical American household that has four cell phones paying $100 for just voice service, will pay nearly $225 per year in taxes, fees and government surcharges. The federal tax is over 6.5%. The state tax in Massachusetts ranks 39th among others at 8.5%.
Djuanria Johnson of Springfield told 22News it adds up; “I wish there was a balance between where they promote the phone at $150; I wish I could just pay that $150, but instead I have like $70 extra in fees of different things. And it’s stressful but you got to pay it.”
Taxes have been growing twice as fast as average wireless prices have been falling.
Average monthly bills have gone down below $50 a month but the added taxes and fees are not making a difference to consumers.