Home
>
VOIP
>
VoIP is Less Taxing than Traditional Telephone Service

VoIP is Less Taxing than Traditional Telephone Service

When it comes to VoIP Broadband Telephone service, there are many benefits. Unlimited local and long distance calling, included features such as CallerID, Call Waiting, Find Me/Follow Me, etc., and reduced costs. Many people overlook one thing when they are comparing the price of a VoIP provider and their Traditional Telephone service, and that is "What taxes are associated with VoIP telephone service vs. what taxes are associated with traditional telephone services?"

In my opinion, this is a huge factor in making the decision to go with a VoIP Broadband Telephone solution. The only VoIP Tax (as of the writing Feb. 2005) associated with a VoIP service is a Federal Excise Tax of only 3% of the bill. For example, if you signed up for a VoIP unlimited calling plan for only $19.95 per month your monthly total would equal $20.55. This $20.55 per month would cover all of your calls to the U.S. and Canada, all of the included features, and quality customer service. (Noted exception: Vonage customers located in N.J. are required to pay sales tax on their Vonage VoIP service.)

Conversely, a Traditional telephone bill includes numerous taxes and surcharges. For example, I had a discount telephone company that only charged me $9.99 per month for a basic Traditional Telephone service in California. Please look at the breakdown of all of the taxes and charges.

BASIC MONTHY CHARGE $9.99

CALL WAITING $3.20

FCC ACCESS CHARGE $4.49

DIRECTORY LISTING/ NON-PUBLISHED $0.79

FEDERAL TAX $0.54

CA RELAT SVC AND COMM DEVICE FUND $0.04

E911 TAX $0.09

UNIVERSAL LIFELINE SERVICE CHARGE $0.16

CA HIGH COST FUND SURCHARGE A $0.02

STATE REGULATORY FEE $0.01

UNIVERAL SERVICE FUND $0.39

CA HIGH COST FUND SURCHARGE B $0.30

TOTAL TAXES, FEES AND SURCHARGES $10.03

So, my bill total was $20.02 for the month and that was before I ever picked up the telephone to make a telephone call. Also the only feature that I opted for was Call Waiting.

You can draw your own conclusions on whether or not VoIP is right for you. If you don't make any outgoing calls then you may want to stick to your traditional telephone company. But from an economical stand point, VoIP is clearly the less expensive option if you make any long distance telephone calls.

Economics is only one part of the equation. Be sure to read my other article on "Things You Should Consider When Selecting a VoIP Provider" found at http://www.voipchoices.com/voip-considerations.html.

For a listing of popular VoIP providers and to do a side by side comparison of VoIP providers and services please visit www.VoIPChoices.com.

Chris Landry is the foremost authority on residential and small business VoIP providers. Chris is the founder of http://www.voipchoices.com. He has prequalified several high-quality VoIP providers and compares them by price and features at http://www.voipchoices.com. Chris can be reach via email at http://www.voipchoices.com.

recurring cleaning service Wilmette ..

In The News:

DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.

Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.

Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.

Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.

A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.

South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.

Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Fake AI apps disguised as "ChatGPT" and "DALL·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.

Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.

Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.

NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.

Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.

Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Hyundai AutoEver America suffered a data breach affecting 2,000 current and former employees, exposing names, Social Security numbers and driver's license information.

Washington court rules automated license plate reader images are public records, even when stored by vendors like Flock Safety, setting precedent for transparency.

Fake airline texts claiming flight cancellations are targeting travelers with convincing scams. Learn how cybercriminals steal personal data and credit card info.

Discover how iOS 26's new Adaptive Power feature automatically extends iPhone battery life by learning your usage patterns and adjusting performance intelligently.

New TikTok malware campaign tricks users into running PowerShell commands that download Aura Stealer, which steals credentials and authentication tokens.

Gaia Family offers fixed upfront pricing for IVF cycles with unlimited embryo transfers and financial protection, partnering with over 100 U.S. fertility clinics.

The Jetsons Act aims to position Pennsylvania as a leader in advanced air mobility by establishing regulations for hybrid ground-air vehicles.

Fake Geek Squad invoice emails are targeting users with convincing charges and urgent phone numbers to steal personal information and money.

Fox News Digital's artificial intelligence newsletter digs into a robot in Russia that faceplanted, George Clooney's alarm and OpenAI's rivalry with the New York Times.

Major data breach at Conduent exposes personal information of 10+ million people. Government contractor hit by cyberattack affecting Medicaid, child support systems.

Texas startup Janta Power raises $5.5M for innovative vertical solar towers that generate 50% more energy than traditional panels while using just one-third the land.

VoIP is Less Taxing than Traditional Telephone Service

VOIP