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Vonage It's not that some carriers don't pay the tax (okay, there are probably a very few
It's not that some carriers don't pay the tax (okay, there are probably a very few very ethically-challenged small fry who evade their taxes, and get away with it because they're very small). Carriers have been subject to a great many taxes for a hundred years or so. For most of the history of the telephone, carriers have paid the taxes and built this cost into their rate structures without itemizing them on customer bills.
Over the past 20 years or so, most carriers have begun stating a price for comparison purposes that excludes these taxes, and then adding them on as extra itemized costs on customer bills. This period roughly coincides with the advent of competition in an industry which was previously a regulated monopoly.
I subscribe to Vonage service at home for $24.95/month/line plus a bunch of taxes and fees that increase the monthly bill to about $30.00. I subscribe to Optimum Voice (offered by Cablevision) at another address for $29.95/month/line with nothing at all added to it. Bottom line, both carriers are paying the taxes, and both are charging me a price based on their costs, which include the taxes. Vonage offers a richer feature set, but for basic conversation, the two offer nearly identical service at nearly identical total billed amounts. Vonage is following the practice of AT&T, Verizon, and numerous other carriers by stating a price which excludes these amounts, and appearing to have a price advantage over some competitors. It's called marketing, and it's a part of every competitive industry. (Merchants have paid sales tax for years, but they always add it to your bill, they almost never include it in the price tag of the merchandise.)
Read The Full Thread: How do carriers like MagicJack avoid all the taxes?
• Recall that in the early days of Vonage, there was very little tax added to the monthly
• I think you are comparing apples and oranges Dave. Vonage and your cable provider
• Just about none of it (other then sales tax) are actually "taxes." None of it is
DLevenson posted "It's not that some carriers don't pay the tax (okay, there are probably a very few" on 06/28/2009 |
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