How much has your Vonage bill gone up?

Posts: 229

Reading the thread on New Sales Tax Discussion, decided to go take a look at my bills from when I started (May 2005) and my last bill (May 2006).

Code:

Residential Basic 500 (16/May-15/Jun) $14.99
Regulatory Recovery Fee $ 1.50
FET Tax $ 0.45
------------------------------------------------
Total Amount $16.94

Code:

Residential Basic 500 (16/May-15/Jun) $14.99
Regulatory Recovery Fee $ 0.99
Emergency 911 Cost Recovery $ 0.99
Sales Tax $ 1.02
Federal Excise Tax $ 0.51
------------------------------------------------
Total Amount $18.50

Posts: 249 · Posted: Sat May 27, 2006 11:15 am Post subject: Federal Excise Tax

According to the local newspaper the Feds will quit charging Excise tax on long distance starting 1 July. Also you can file to have all federal excise tax refunded for the last few years in your next income tax return. This because of many lawsuits. It seems that the tax was originally conceived to fund the Spanish American War! It was never rescinded after the war... That's not illegal, just politics. The suits came because the tax is supposed to be levied on time X distance of the call. With modern calling plans that has been impossible to determine so a flat tax was placed on each line. That was the illegal part. I don't have the article at hand but I'm sure that someone out there can elaborate.

Edit Edit
Here is a passage I found dated May 25.
In wake of a recent unfavorable appeals court decision, the U.S. Treasury announced today the IRS is abandoning its attempts to collect the tax on long-distance calls. It plans to issue full refunds to taxpayers in 2007 who have improperly paid:

WASHINGTON, DC – The U.S. Treasury Department today announced it is conceding the legal dispute over the federal excise tax on long-distance telephone service. The Department of Justice will no longer pursue litigation and the Internal Revenue Service (IRS) will issue refunds of tax on long-distance service for the past three years. Taxpayers will be able to apply for refunds on their 2006 tax forms, to be filed in 2007.

Treasury Secretary John Snow states, "Today is a good day for American taxpayers; it marks the beginning of the end of an outdated, antiquated tax that has survived a century beyond its original purpose, and by now should have been ancient history.

"The Federal Appeals courts have spoken across the board. It's time to `disconnect' this tax and put it on the permanent `do not call' list.

"In addition to ending the litigation, I would like to call on Congress to terminate the remainder of this antique tax by repealing the excise tax on local service as well."

Posts: 80 · Vonage Forum Senior Joined: May 24, 2006 Posts: 80

OldSnipe wrote:

According to the local newspaper the Feds will quit charging Excise tax on long distance starting 1 July. Also you can file to have all federal excise tax refunded for the last few years in your next income tax return.

You are right - the excise tax will be going away, and you will be able to get the taxes paid during the past three years refunded.

Vonage plans to stop collecting the excise tax on August 1, 2006.

Posts: 605 · Posted: Tue May 30, 2006 9:05 am Post subject:

Code:

Residential Premium Unlimited Plan for 1-(813)-67X-XXXX (17/Apr-16/May) $24.99
Emergency 911 Cost Recovery $0.99
Regulatory Recovery Fee $0.99
FET Tax $0.75
Total Amount $27.72

and this month

Code:

Residential Premium Unlimited Plan for 1-(813)-67X-XXXX (17/May-16/Jun) $24.99
International Calls for 1-(813)-67X-XXXX (17/Apr-16/May) $0.28
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
Federal Excise Tax $0.82
Total Amount $28.07

Posts: 70 · Full Forum Member Joined: Jan 11, 2005 Posts: 70

Code:

Premium Unlimited Plan for 1-(952)-xxx-xxxx (30/May-29/Jun) $24.99
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
Sales Tax $1.75
Federal Excise Tax $0.81
State 911 Fee $0.65
Total Amount $30.18

I guess that I'm really getting screwed. Mine just went up about $2. All these taxes are really cutting into my savings coming from Qwest as I don't use LD.

Posts: 605 · Posted: Tue May 30, 2006 9:19 pm Post subject:

Im planning on downgrading to the 14.99 plan anyway..i use my mobile phone most of the time anyway.

Posts: 5 · New Forum Member Joined: Aug 12, 2005 Posts: 5

My bill has gone UP again this month !
3rd straight time

This month I am now paying a new state communications sales tax.
( Probably thanks to NC )

The rate increases started in March this year :

****
Residential Basic 500 Plan for (28/Feb-30/Mar) $14.99
Regulatory Recovery Fee $1.50
FET Tax $0.45
Total Amount $16.94

*****
Residential Basic 500 Plan for(31/Mar-29/Apr) $14.99
Emergency 911 Cost Recovery $0.99
Regulatory Recovery Fee $0.99
FET Tax $0.45
Total Amount $ 17.42

******
Residential Basic 500 Plan for (30/Apr-30/May) $14.99
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
Federal Excise Tax $0.51
Total Amount : 17.48

******
Residential Basic 500 Plan for (31/May-29/Jun) $14.99
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
State Telecommunications Sales Tax $1.19
Federal Excise Tax $0.51
Total Amount $18.67

Posts: 70 · Full Forum Member Joined: Jan 11, 2005 Posts: 70

With all the "add on" taxes Vonage is becoming the closest to the old POTS business model out of the Voip carriers. I'm going to start shopping around.

Posts: 249 · Posted: Wed May 31, 2006 10:02 am Post subject: QWest

Kash76 wrote:

With all the "add on" taxes Vonage is becoming the closest to the old POTS business model out of the Voip carriers. I'm going to start shopping around.

QWest adds on the same fees. Our local Cable company started their own Voip service 2 months ago. I think they charge a flat $30.00 or $35.00 a month, but they advertise that all fees and taxes are included. I still believe that to save bucks the Vonage 500 minute plan is tops! Remember, that's only out going minutes. Incoming don't count. Also if you were to go over it's only .04 cents/minute.

Or you could move to Oregon. Oregon state does not have a sales tax. Not on cars, buses, beans, snow nor phone conversations! Very Happy

Posts: 70 · Full Forum Member Joined: Jan 11, 2005 Posts: 70

I left Qwest because I was paying $39.xx for a $29.99 plan. I joined Vonage at $27.24 a month. Other than the state or fed enforced taxes I wish that Vonage would just say they are raising the fee because of costs. It's the same crap that Verizon, Qwest, etc have done for years.

When I said shop around I wasn't talking about going back to Qwest but rather one of the other providers that include the taxes in the monthly charge.