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Thursday, December 11, 2008

Hidden Tax

Video (14.5%) and wireless phone (24%) services are taxed.

In White Plains my Verizon FIOS video (TV) service costs $40 per month. In addition to that I pay $5.78 in tax. That's 14.5%! One dollar goes to PEG Grant Fee, whatever that is; I think it's federal. Of the remaining $4.78, $3.16 goes to Video Franchise Fee. Nice work, Common Council. Why the heck are we paying? I thought CC was trying to soak Verizon for granting a franchise.

It gets worse. My $39.99 Verizon Wireless service is taxed $9.62. That's 24%!!! 34.4% of that tax goes to the Feds. The rest is sliced among the local municipal money changers, including $1.30 for White Plains School Distr Tax. That's 13.5% of the total tax and 20.6% of the local tax going to the WP schools. Why?

What the heck is going on? How the heck do they get away with these outrageous tax rates?

The only good news is that Verizon FIOS Internet service is not taxed.

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