VoIP is Less Taxing than Traditional Telephone Service

When it comes to VoIP Broadband Telephone service, there are many benefits. Unlimited local and long distance calling, included features such as CallerID, Call Waiting, Find Me/Follow Me, etc., and reduced costs. Many people overlook one thing when they are comparing the price of a VoIP provider and their Traditional Telephone service, and that is "What taxes are associated with VoIP telephone service vs. what taxes are associated with traditional telephone services?"

In my opinion, this is a huge factor in making the decision to go with a VoIP Broadband Telephone solution. The only VoIP Tax (as of the writing Feb. 2005) associated with a VoIP service is a Federal Excise Tax of only 3% of the bill. For example, if you signed up for a VoIP unlimited calling plan for only $19.95 per month your monthly total would equal $20.55. This $20.55 per month would cover all of your calls to the U.S. and Canada, all of the included features, and quality customer service. (Noted exception: Vonage customers located in N.J. are required to pay sales tax on their Vonage VoIP service.)

Conversely, a Traditional telephone bill includes numerous taxes and surcharges. For example, I had a discount telephone company that only charged me $9.99 per month for a basic Traditional Telephone service in California. Please look at the breakdown of all of the taxes and charges.

BASIC MONTHY CHARGE $9.99

CALL WAITING $3.20

FCC ACCESS CHARGE $4.49

DIRECTORY LISTING/ NON-PUBLISHED $0.79

FEDERAL TAX $0.54

CA RELAT SVC AND COMM DEVICE FUND $0.04

E911 TAX $0.09

UNIVERSAL LIFELINE SERVICE CHARGE $0.16

CA HIGH COST FUND SURCHARGE A $0.02

STATE REGULATORY FEE $0.01

UNIVERAL SERVICE FUND $0.39

CA HIGH COST FUND SURCHARGE B $0.30

TOTAL TAXES, FEES AND SURCHARGES $10.03

So, my bill total was $20.02 for the month and that was before I ever picked up the telephone to make a telephone call. Also the only feature that I opted for was Call Waiting.

You can draw your own conclusions on whether or not VoIP is right for you. If you don't make any outgoing calls then you may want to stick to your traditional telephone company. But from an economical stand point, VoIP is clearly the less expensive option if you make any long distance telephone calls.

Economics is only one part of the equation. Be sure to read my other article on "Things You Should Consider When Selecting a VoIP Provider" found at http://www.voipchoices.com/voip-considerations.html.

For a listing of popular VoIP providers and to do a side by side comparison of VoIP providers and services please visit www.VoIPChoices.com.

Chris Landry is the foremost authority on residential and small business VoIP providers. Chris is the founder of http://www.VoIPChoices.com. He has prequalified several high-quality VoIP providers and compares them by price and features at http://www.VoIPChoices.com. Chris can be reach via email at Chris@VoIPChoices.com.

In The News:


pen paper and inkwell


cat break through


Is VoIP Good For The Home?

There is no doubt that you have heard about VoIP... Read More

VoIP (Computer Phone) Warning

Warning! Warning! Warning!Beware of VoIP internet service providers that operate... Read More

The Future of Communications - Voice Over Internet

When was the last time that you were able to... Read More

Try VoIP for Free - No Commitment, No Hardware

Try VoIP Before BuyingSo you like the concept of 'cutting'... Read More

Will VoIP be a Mass Market Product?

A common thinking among "Marketing people " is that for... Read More

VoIP in the Home

VoIP is set to revolutionise home communications. With VoIP you... Read More

6 Important Things You Should Consider When You Are Selecting A VoIP Provider

The following are 6 very important factors to consider when... Read More

Lower Videophone Prices Allow Individuals Accessibility

VoIP service providers are now offering videophone at the lowest... Read More

Voip Providers Review--- Choose The Best One For Your Business

Making phone calls applying a broadband Internet connection,known as VoIP... Read More

VoIP Phone Home?

The movie Extra Terrestrial (ET) coined the phrase "phone home"... Read More

The Calling Card Alternative

For a few years now, the calling cards business is... Read More

Broadband Phone Technology - Top 5 Reasons You Should Take Notice

For the uninitiated, the term broadband phone is loosely used... Read More

VOIP: A Basic, Basic Intro

What is it?Most people are familiar w/ NetMeeting and other... Read More

How Much Bandwidth is Required for VoIP Phones?

A long-standing question for potential VoIP (Voice over Internet Protocol)... Read More

VoIP: Finally Worth a Look

Dear Internet Friends, Hundreds of thousands of consumers collectively save... Read More

VOIP Questions and Answers

Voice over Internet Protocol, or VoIP, has grown in popularity... Read More

VoIP is Less Taxing than Traditional Telephone Service

When it comes to VoIP Broadband Telephone service, there are... Read More

Instant Menaces or Instant Messengers?

Many vendors offering Instant Messaging (IM) services have added new... Read More

Finally Voip Worth a Look!

Everyone can Benefit from this Technology! Voip will be next... Read More

Why VoIP is not Going to Fail

VoIP is an almost constant topic in our daily dose... Read More

Voice over IP Offers Your Business an Inexpensive Alternative To Toll Free Numbers

New businesses can now let their customers contact them for... Read More

A Look at Internet Voice Technology (VoIP) for Residential

Today's TechnologyOver the years, the technology has made remarkable progress.... Read More

The Dangers of Peer-to-Peer Systems

Peer-to-Peer (P2P) systems do not operate on secure lines, thus... Read More

How to Choose VoIP Service Without Losing Your Shirt

Voip.Just mentioning the word to yourself either brings up images... Read More

Get a ?Virtual Phone Number? - Eliminate Long Distance Charges with VoIP Phone Service

There's a revolution brewing in the telephone industry. But it's... Read More

VOIP For Your Business

Many companies are now beginning to look into alternatives to... Read More

Faxing over VoIP

As far as VoIP has come in Voice telephone calls,... Read More

Voice over Internet Protocal VoIP for Business

VoIP consists of 2 major technologies....Making Calls Over the Internet--ResidentialThis... Read More

World On IP Community versus Telecoms Monopoly

World on IP community versus the TELECOMS' monopoly or a... Read More

VoIP Overview

Since we're using computers all the time to do our... Read More

What Is VoIP and How Does It Work

IntroductionThe way we make phone calls is changing. In fact... Read More

How VoIP Works -- Busting Out of Long Distance Rates

VoIP is the newest advancement in audio communications technology, and... Read More

What can a VoIP Phone System Do for a Small Business?

Voice over Internet Protocol, or VoIP, is a term used... Read More