Hi 040972,
The federal excise tax is 3%. The 6.05% that you are now being charged
includes both 3% federal excise tax and fees. It wouldn't hurt to
contact US Cellular and ask them to itemize the federal tax and fees
for you. Try the "Tax Finder" that I posted below to find out what
taxes and fees are charged in your region.
"State and local taxes on cell phone service vary widely. Also
applying in every state is a 6.05% federal levy composed of an excise
tax and a fee that subsidizes service to low-income homes and remote
areas." [see table]
http://www.usatoday.com/news/nation/2005-05-08-cellphone-taxes_x.htm
What you Should Know about Your Cell Phone Service and Bills
Federal Excise Tax
"This is a three percent tax imposed by the federal government."
http://www.hearusnow.org/phones/consumertips/wirelessphoneservices/afterwhatyoushouldknowaboutyourcellphoneserviceandbills/
Utitlity Consumers' Action Network (UCAN)
Genuine Taxes:
"These are taxes imposed by federal, state, and local governments.
The biggest charge is the 3% federal excise tax, first imposed in the
1800's to fund the Spanish?American War. These fees should be the
same for all companies, and should only change if the government
decides to change it."
"Soft Fees:"
"Soft fees are fees that are mandated by the government, but the exact
amount to be charged is left up to the company. Of course, phone
companies abuse this discretion, and soft fees make up a much bigger
part of the typical phone bill."
"Fake Taxes and Fees are bogus charges that are designed to look
official, but which, in reality, are nothing more than profit centers
for the carriers."
Examples of Fake Fees:
? Cingular ? charges $1.25 for "regulatory recovery."
http://www.ucan.org/members/ucanmembersonly/watchdog/2004/04fonsurvivalguide/Fees.html
UCAN Telephone Taxes & Surcharges
http://www.ucan.org/consumer_info/Phone_Bill/Taxes&Surcharges.htm
Tax Finder
http://avcinc.com/taxfind.cgi
Additional Links of Interest:
National War Tax Resistance Coordinating Committee (NWTRCC)
A National Campaign of Anti-war phone Tax Resistance
How To Refuse the Phone Tax
http://www.nwtrcc.org/hanguponwar.org/howto.htm
Cool Consumer Tools
http://www.ucan.org/hottopics/cooltoolsindex.htm
I hope this helps, the research has been very interesting. If you have
any questions, please post a clarification request and wait for me to
respond before closing/rating my answer.
Thank you,
hummer
Google Search Terms Used: Federal Excise tax cell phones 6.05% 3% usf surcharges |
