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.

eco-friendly cleaning service Buffalo Grove ..

In The News:

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

FoloToy restored sales of its AI teddy bear Kumma after a weeklong suspension following safety group findings of risky and inappropriate responses to children.

Threat intelligence firm Synthient uncovers one of the largest password exposures ever, prompting immediate security recommendations.

Viral video shared by Elon Musk shows Tesla's Optimus humanoid robots performing tasks from cooking to construction, garnering over 58.5 million views on social media.

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.

Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.

Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.

New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.

FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.

New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.

OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.

Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.

VoIP is Less Taxing than Traditional Telephone Service

VOIP