Big Part of Phone Costs Is In the Small Text

Recently I succumbed to replacing my mobile phone. Though I chose one of the simpler Android models, and avoided nearly all add-on accessories, the price jumped up as I got to checkout. The reason: New York’s voracious taxing authorities. Whether it be on monthly usage bills or on purchases of the devices, governments have seized on this now ubiquitous personal computer as a way of escalating their take with seemingly little organized objection.

At my request, my cell-service provider broke down the official damage: Better than half was state and local sales taxes–I expected that. But more than 43% came from assorted state and local excise and “mobility” or transit charges. These are junk fees put on consumers who have no real alternatives (much like the add-ons for vehicle purchases that only some drivers can get around). All together, the public sector got 16% on top of my bill–including on the shipping charge.

From a September 2025 report from the Tax Foundation policy group, I see that New York’s are the 4th highest phone-tax charges. (Everybody in the U.S. pays an additional 13.36% federal tax on mobile service bills.) Not surprisingly, Illinois and especially the city of Chicago impose the worst penalties. I suppose I should be grateful for small favors.

But doesn’t New York City have a new young mayor who ran on an “affordability” platform? Alas, he also has a socialist agenda, and that will need his wireless constituents to keep ponying up. –March 16, 2026

Published by timwferguson

Longtime writer-editor, focusing on topics of business and policy, global and local.

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