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.

efficient cleaning crew Lake Forest ..

In The News:

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.

NASA's twin ESCAPADE spacecraft launched aboard Blue Origin's New Glenn rocket Thursday afternoon from Cape Canaveral, beginning their journey to Mars with arrival expected in 2027.

Learn how to set email reminders on iPhone and Android so you never forget to reply again. Simple built-in features help you stay organized and on top of messages.

Discover how Apple's passkeys revolutionize Mac security by replacing vulnerable passwords with biometric authentication and encryption for ultimate protection.

New survey reveals 78% of parents fear AI scams targeting their kids, yet nearly half haven't discussed these threats. Learn why this dangerous gap exists.

Chrome now autofills passport and driver's license info automatically. Google's latest browser update adds official document support with encryption and user control.

Scammers impersonate Department of Veterans Affairs employees claiming veterans owe money, but real VA communications only direct to VA.gov or official channels.

The AltoVolo Sigma hybrid-electric aircraft flies 500 miles at 220 mph while operating 80% quieter than helicopters, featuring safety systems and compact design.

Google search scam alert: fake customer service numbers can give scammers remote control of your phone. Learn how to spot these traps and protect yourself.

Electric vehicles overtake gas cars in total CO2 savings after just two years of driving, with emissions benefits growing over time as power grids get cleaner.

Louvre Museum reportedly used "Louvre" as password for surveillance system during $100M jewel heist. Learn how weak passwords put even famous institutions at risk.

Bipartisan AI jobs bill from Sens. Hawley and Warner would require companies to report AI-related layoffs and hiring to Department of Labor quarterly.

Joe A. from Shelton, Connecticut, lost $228,000 to a ZAP Solutions cryptocurrency investment scam after his divorce, highlighting rising online fraud.

AI-powered autonomous trucks from Waabi and Volvo target U.S. freight driver shortage with Level 4 self-driving technology and NVIDIA computing platform integration.

Survive flight disruptions with expert travel tips: Book early morning flights, download airline apps and know your refund rights during service cuts.

Apple's iOS 26.1 update delivers major security fixes, performance boosts and enhanced privacy controls for your iPhone. Discover why updating now protects your data.

Russian hackers use fake CAPTCHA tests to spread dangerous malware targeting governments and journalists. Learn how to protect yourself from these deceptive attacks.

VoIP is Less Taxing than Traditional Telephone Service

VOIP