- Record High Wireless Taxes: As of 2025, taxes, fees, and government surcharges on wireless services have reached a record 27.60% of the average bill, translating to over $330 annually for a typical American household on a family share plan. Illinois has the highest wireless tax rate at 38.32%, while Idaho has the lowest at 16.82%.
- Increased Tax Burden on Consumers: The Federal Universal Service Fund (FUSF) charge has risen to 13.36%, alongside an increase in state and local taxes. This growing tax burden disproportionately affects low-income households, where about 83% live in wireless-only homes, making these taxes regressive and a significant financial strain.
- Impact on Investment and Infrastructure: High and discriminatory taxes on wireless services may deter investment in wireless infrastructure, which is crucial for economic growth and connectivity, particularly for low-income consumers who rely on wireless services for access to essential services. Policymakers are urged to reconsider these tax structures to promote broader economic benefits.
Source Tax Foudation
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