Average monthly wireless service bills have dropped 26% since 2008, according to the Tax Foundation, but wireless taxes have increased 50% and that’s why customers aren’t seeing savings. Experts say taxes, fees and surcharges make up 22.6% of the average U.S. bill.
Part of the reason that taxes on cellphone bills are so high is because of the Internet Tax Freedom Act, which forbids states, localities and the federal government from taxing internet access. States used to get hundreds of millions of dollars by taxing landlines, but with people increasingly ditching home phones in favor of cellphones, states have tried to close the gap by levying massive taxes on the voice and text portions of cellular plans, which are not covered under the Tax Freedom Act.
That’s just one of the reasons many Americans are paying over $100 a month for their cellphone bills. Watch the video above to find out what else may be contributing to your high bill and how you might be able to save some money.