Phone “Fees” – A Growing Problem for Taxpayers

It’s hard to believe another state legislative session is already underway in Oklahoma. 2012 will prove to be an important year as lawmakers consider sweeping tax reforms that will eliminate Oklahoma’s income tax. While we encourage lawmakers to embrace these reforms to ensure long-term economic stability and an even better business climate, we hope they don’t adjourn without also passing reforms to address the growing fees all citizens pay on our monthly phone bills.

Each month, phone users are taxed to support subsidies like the Oklahoma Universal Service Fund, which benefit the bottom lines of traditional land-line telephone companies. At their own discretion, these companies access and use taxpayer money to make up for revenue losses. For years, Oklahoma has stood by and allowed this tax cycle to go on without forcing these companies to adjust their business plans or their product offerings.

More and more consumers are hanging up on traditional phone service – pushing aside their rotary phones for IP-enabled services, iPhones and Blackberries. Ironically, today’s savvy consumers are less interested in the services these small phone carriers provide, yet they are keeping these companies in business with their tax dollars.

It’s time to fight back and limit increases to our state’s taxpayer-funded Universal Service Fund. The taxes that pay for the fund have steadily increased over the years and will only continue to grow if lawmakers don’t remedy this situation. Fortunately, a bill (HB 2737) has been introduced to address the problem and prevent these small phone companies from continuing to treat the Oklahoma Universal Service Fund like their very own ATM. Other businesses don’t have that luxury, and neither should these phone companies.

Progress is in our reach this year, and we are counting on the Oklahoma Legislature to move legislation forward that will serve the best interests of all taxpayers in the Sooner State.