Cell Phones taxed like cigarettes

Forbes raises an interesting question. Cell phones have not been proven to cause cancer, so why exactly are they taxed like they do?

"Steve Largent, head of the main cell phone lobbying group, recently complained to Congress that the average 16.8% in combined federal, state and local taxes his customers pay has traditionally been levied on products like cigarettes. Americans pay an average of just 6.9% for typical non-carcinogenic goods and services.

So far, cities and towns have gotten away with treating the country's 182 million cell phone subscribers as easy marks. Cell phones taxes increased nine times faster than taxes on other goods and services between January 2003 and April 2004, according to one industry study. In a particularly egregious case, Baltimore just hit its residents with a new $3.50 per month tax".

emily | 2:05 PM | News, Buzz |
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