Taxpayer Alert: Stop the Phone Tax

Currently, the tax on your phone bill is more than 25% of the whole bill—so if you phone bill is $100—that  tax that is included in that amount is more than $25.  Any wonder it is expensive to live in California?  Now the Democrats wants to INCREASE your phone taxes.

AB 14 and SB 4 are two bills pending before the Legislature that could be voted on by the end of the week. Combined, these bills seek to provide taxpayer dollars for the state to build Internet lines in regions where insufficient service exists. While this is a laudable goal, another tax on your phone bill is not necessary.

Have you heard that California has a record budget surplus? Governor Newsom announced earlier this summer that California has an unexpected one-time windfall of $75 billion”.

While claiming to have a $75 billion surplus—the Democrats want to nick you for even more money.  What is at stake on September 14?  Your financially security—and your ability to stay in California without going into poverty.

Taxpayer Alert: Stop the Phone Tax

 CalTax,  9/7/21 

Sacramento lawmakers could increase your taxes by adding new charges to your monthly phone bill. California already is an expensive place to live. New taxes will make our cost of living even higher.

AB 14 and SB 4 are two bills pending before the Legislature that could be voted on by the end of the week. Combined, these bills seek to provide taxpayer dollars for the state to build Internet lines in regions where insufficient service exists. While this is a laudable goal, another tax on your phone bill is not necessary.

Have you heard that California has a record budget surplus? Governor Newsom announced earlier this summer that California has an unexpected one-time windfall of $75 billion. If that wasn’t enough to pay for new Internet projects, President Biden also approved the American Rescue Plan, which earmarks billions of dollars for Internet projects in California.

Now is the wrong time to raise taxes, when existing funds haven’t been spent.

Here are the taxes you already pay on your phone bill:

Universal Lifeline Telephone Service – 4.75%

Deaf and Disabled Telecommunications Charge – 0.50%

High-Cost Fund A – 0.70%

High-Cost Fund B – 0.00%

Teleconnect Fund – 0.78%

California Advanced Services Fund – 1.109%

Federal Universal Service Fund – 9.83%

Local Utility User Tax – 8.00% (Statewide Average)

Total Taxes & Fees on Your Phone and Internet Bill: 25.7%

One more tax on your phone will make California’s phone taxes among the highest in the country. You can read more about AB 14 and SB 4 at this link.

We have until September 10 to stop these tax increases. Please call your state lawmakers to let them know you are opposed to AB 14 and SB 4 (click here for direct phone number).

(Don’t know your lawmakers? You can find your representative here and then call the number above.)