California's proposed text message tax: 5 things to know
California regulators are considering a plan to charge a text messaging fee on mobile phones to help support programs that make phone services more accessible.
News about the tax proposal has caused a revolt.
Here are five things to know about the suggested text:
1) Who will tax text messages and why?
California Public Utilities Commission has made the proposal.
CPUC said that the additions are "used to support public programs such as 911 service; CPUC's LifeLine program, which subsidizes phone prices for low-income customers; and deaf and disabled telecommunications programs, providing special equipment for deaf and hard fitting."
2) How much would the tax be?
CPUC said the tax amount would amount to about 70 cents for every $ 1[ads1]9 of text revenue.
3) Who is fighting the fee?
Many consumers are very upset about the proposal to tax text messages.
"It would be a bummer honest," said Cashmere Wormley, a customer at a Cricket Wireless Store in Sacramento. "I'll do more phone calls."
The Cellular Telecommunications Industry Association, or CTIA, which represents the wireless industry, is also against.
In a statement to KCRA 3, Jamie Hastings, CTIA's Senior Vice President for External Affairs, wrote:
"We hope that the CPUC acknowledges that taxation of text messages is poor for consumers. Consumers exchanged 1.77 trillion messages in 2017 , which makes text messaging one of the most common and effective communication methods for Americans. Taxes of this service will burden those who trust and use this service every single day. "
4) Is the text tax a safe thing?
No.
A new decision by the Federal Communications Commission could scuttle the proposed text tax.
Earlier this week, FCC classified subtitles as "information services" instead of "telecommunications services".
So the future of the text message is unclear.
5) Is California overtaxed?
The Golden State already has $ 14.5 billion in a rainy season, and California is also projecting a budget surplus of $ 14.8 billion for next year. But the state has very high living costs.
"We have the highest rate of income tax in America and the highest sales tax rate in America," said Jon Coupal, president of the Howard Jarvis Taxpayers Association.
California also pays higher than average fees to recycle batteries, used tires and electronic waste. At the gas pump, Californians pay 12 cents a gallon more; tax revenues that go into road repairs.
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