No. 113 Taxes and Fees on Communication Services (executive summary pdf)

A new study by David Tuerck, Paul Bachman, Steven Titch, and John Rutledge finds taxes and fees imposed on cable TV and phone services in 59 U.S. cities cost the average household approximately $250 a year. Communication services are taxed at twice the average rate of other products and impose a major burden on consumers and low-income households in particular. Taxes also vary considerably from state to state, from service to service, and according to the technology used to deliver otherwise-similar services. Local, state, and national governments can take actions to make communication taxes lower and more uniform.