I get my cable, internet and phone service through a bundled package via Cox communications, and one thing that has really bugged me is the high level of fees & taxes in each bill. I have scanned in one of my recent bills so that you can see what I mean. My total bill was $125.38; Figure 1, has a total of the bills fees and charges summary which comes to $8.20 (6.5% of the total). I can live with that. Then, I see these other taxes, which are NOT in the fees and charges summary section. Figure 2, shows these as FCC Access charge and VA Telephone right of way fee. These add up to $6.89.
Figure 2 – Phone Tax/Charges
So combining all the actual charges, the total fees and taxes I pay on the bill is 15.09, or 12% of the total bill. The sales tax in my state (VA) is 5%, so this is almost 7% more than than that. You can look up each of the taxes via a Google search and I hope that all these tax dollars are being effectively spent by the government. Though I highly doubt it, but as this is not a political blog, I won’t go into it further.
If I wanted to save money and reduce taxes, one thing I could do is to get rid of my land line – which seems to have the highest taxes levied against it. I can see why a number of people are doing this, but unfortunately due my condos intercom system, I need to have a land line available. Further the communications company in my area has a virtual monopoly so not many lower priced options out there. For now, I guess I’ll have to live with it.
Are your cable/phone taxes and charges as high in the state you live in?
4 thoughts on “Excessive Taxes and Fees on my Cable/Phone Bill”
Some are actual taxes which might be waved (paid) by the provider as a promo. Some are simply there to let the provider claim one price and charge another.
The FCC explains their end at https://www.fcc.gov/consumers/guides/understanding-your-telephone-bill
If you don’t like it dump them. Otherwise you have to live with it.
Why on earth are there taxes on everything, I thought all that bs was why they take taxes out of our pay checks.
Those “fees and taxes” don’t go to the government, the cable companies disguise their fees as fees AND taxes so they can get more money out of you so YOU will pay the taxes THEY owe the government. This way the able companies only make profits and don’t have to pay any tax. That’s what happens when you have tons of money and employ lobbyists and lawyers to help you maximize your profits. You can read the books, “captive audience” and “perfectly legal” to see how these companies screw you to maximize their profits.
Looking at my Virginia telephone bill DECEMBER 2012; the basic bill is 54.99. The taxes used to be reasonable about 10 percent. NOW THE TAXES/FEES on the bill are 30 percent of the landline phone bill. THIS IS RIDICULOUS… since I live in a rural area and don’t have cable we have satellite and I pay state taxes on that setellite for Internet and Satellite for TV. Now since GWB  SOLD ALL THE BROADCAST LICENSES TO THE TELEPHONE COMPANIES SOTHEY COULD HAVE DIGITAL TV YOU MUST HAVE SATELLITE OR CABLE TO GET THE ‘LOCAL STATIONS IF YOU ARE MORE THEN 25 MI FROM A MAJOR CITY. PLUS I HAVE TO PAY MY SATELLITE TV PROVIDER 5.00 MORE PER MONTH FOR THAT…FREE TV WHEN I GREW UP IS NOW PAY FOR TV IN 2012. There is no way to escape the Corporations and the STATE govt and taxes. Think I’ll cut off my TV and the land line phone..