The latest tax proposal in California would take money from people for sending text messages.
The California Public Utilities Commission will vote on the proposal in January 2019.
“Parties supporting the collection of surcharges on text messaging revenue argue that it will help preserve and advance universal service by increasing the revenue base upon which Public Purpose Programs rely. We agree,” the commission stated.
The proposal includes a retroactive surcharge of five years.
There are currently 40 million cell phones in California, according to the commission.
“It’s a dumb idea,” Jim Wunderman, president of the Bay Area Council, a business-sponsored advocacy group, told the outlet. “This is how conversations take place in this day and age, and it’s almost like saying there should be a tax on the conversations we have.”
According to business groups, the new charges would total about $44.5 million a year. However, with the retroactive surcharge, the total could reach above $220 million.
“From a consumer’s point of view, surcharges may be a wash, because if more surcharge revenues come from texting services, less would be needed from voice services,” said commission spokeswoman Constance Gordon in a statement. “Generally, those consumers who create greater texting revenues may pay a bit more, whereas consumers using more voice services may pay less.”
Taxes in California
California already has some of the highest taxes in the nation. For instance, state gas taxes alone levy up to $0.41 a gallon, making the tax one of the highest in the nation and driving gas prices well above nationwide averages.California has the highest sales tax rate in the nation at 7.25 percent.
“It’s almost always in the top half of the states in terms of a tax or its burden or how much people pay. And it’s often in the Top 10.”
According to a report published by the foundation in 2016, California was the sixth highest in terms of “state-local tax burden as a percent of state income.”
“Just with the overall cost of living and the tax situation, and really the inability of our kids to be able to afford to live here, as well,” he said. “So they’ve immigrated out of the state. We’re really just trying to conserve our resources for the long haul and it’s just a very expensive place to live.”