Cable TV and Phone Calls Are Taxed at Twice the Rate of Other Goods, Study Finds

by on May 2, 2007 · 2 comments

Those who care about free speech should consider why government taxes are higher on communications than on other goods and services. This new study by The Heartland Institute and the Beacon Hill Institute is eye opening.

Here’s a paragraph from the study:

According to the Tax Foundation, the national average retail sales tax rate (combining local, county, and state sales taxes, weighted by personal income) is 6.61 percent. Taxes and fees on cable TV and telephone subscribers average 13.52 percent, twice as high. In other words, telephone calls and cable services are taxed at two times the rate as clothing, sporting goods, and other household products.

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Sonia Arrison / Sonia Arrison is an author and policy analyst who has studied the impact of new technologies on society for more than a decade. A Senior Fellow at the California-based Pacific Research Institute (PRI) and a columnist for TechNewsWorld, she is author of two previous books (Western Visions and Digital Dialog) as well as numerous PRI studies on technology issues. A frequent media contributor and guest, her work has appeared in many publications including CBS MarketWatch, CNN, Los Angeles Times, New York Times, Wall Street Journal, and USA Today. She was also the host of a radio show called "digital dialogue" on the Voice America network and has been a repeat guest on National Public Radio and CNN's Headline News.

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