California lawmakers want to tax text messaging next

By John Mac, December 13, 2018

State regulators are considering charging a fee for text messaging on mobile phones as a way to assist apps that make mobile service reachable to the inadequate, as found by a study by the Mercury News. The suggestion, that will be scheduled to get a vote by the California Public Utilities Commission, faces opposition from the wireless market and company teams.
It’s uncertain how a lot of people would have to pay for texting services, but in accordance with the Mercury News, it would likely be billed as a flat surcharge per purchaser, not a fee a per text.

In a lengthy report, the California Public Utilities Commission lays out the reasoning for its texting tax, demonstrating that California’s overall reported earnings by the state industry declined to $11.2 billion in 20 17 from $16.5 billion in 2011, while the general public objective Program funding has jumped into $998 million in 2017, in contrast to 670 million 2011. The earnings by your telecommunications business can be utilised to invest in the program.

Business groups estimated that the new costs for wireless customers might equal about $44.5 million per year. For customers, it could end up costing significantly more than $220 million, because the proposal allows the charge to be retroactively applied for the past five year.
Critics lambasted the proposal unreasonable and cautioned that it places a dangerous precedent by allowing businesses to tax retroactively.
“That is unsustainable over time,” the report stated.

California has higher taxes, coupled with the general high cost of dwelling. According to a San Francisco-based small business association, the Bay Area Council, a 4 6 percent of inhabitants at the Bay Area are frustrated with the cost of alive and would consider relocating. Text messaging might be the second victim in the drive for higher taxation of California.
An analysis released from the Federation of Tax Administrators that California gets the greatest personal income tax floor, at 13.3 per cent.