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.

---

Things You Should Consider When Selecting a VoIP Provider

The following are very important factors to consider when you... 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

Do You Text Chat (IM) Online?

IM (Instant Messaging) - man, we thought we had it... Read More

Should You ,VoIP?

My friend in Florida, Samuel, called me last week and... Read More

Why Over 90% of VoIP Services Are Vulnerable to Attack

John Ashcroft, Attorney General, in remarks at the High Technology... Read More

Telecom Industry Transition: WiFi, VoIP, WiMax - The Wireless Age is Already Here

VoIP on WiMax will make the latest 3G technologies obsolete... 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

What Do You Know About VoIP?

What is VoIPVoIP is an acronym for voice over internet... Read More

Using a Bluetooth Headset with your PC

BluetoothFor those of you not familiar with the term, Bluetooth... Read More

Why VoIP is not Going to Fail

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

VoIP - What is the Problem?

In the beginning, when the Internet Protocol was first designed,... Read More

How VoIP Works -- Busting Out of Long Distance Rates

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

The Lowdown on VoIP

It seems like technology is headed for a massive telephone... Read More

Benefits of VoIP

You may not have considered it but there are many... Read More

World On IP Community versus Telecoms Monopoly

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

Try VoIP for Free - No Commitment, No Hardware

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

Does Voice Over IP Telephony Spell the End for Traditional Telephones?

Just What is Voice Over IP Telephony?Voice over Internet Telephony... Read More

Bluetooth Computer Headsets - Enjoy Wireless Freedom

Wireless Computer HeadsetsTill recently, few options were available to people... Read More

A Look at Internet Voice Technology (VoIP) for Residential

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

VoIP and 911 Warning

Be leery of your VoIP phone system in case of... Read More

Security, Stability, and Interoperability Issues on VoIP Implementation

Now we have accepted that VoIP is no longer just... Read More

How VoIP Will Affect Every Household and Business in the World

Seattle venture capitalist, Greg Gottesman, calls it "?one of the... Read More

The Calling Card Alternative

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

Voice over Internet Protocal VoIP for Business

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

Outstanding VoIP Voicemail Features Makes Getting VoIP Voicemail Extremely Convenient

There are many types of VoIP (Voice over Internet Protocol)... Read More

Voip - Voice Over IP and Business: Is It For You?

VoIP allows users to make phone calls using their high-speed... Read More

What Is VoIP and How Does It Work

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

What Is VOIP?

Confused about VOIP? Join the crowd. It's not as difficult... Read More

Take Your Home or Business Phone With You When You Travel

Voice Over Internet Protocol (VoIP) telephone service uses a broadband... Read More

Is VoIP the ?Next Big Thing? in Telecommunications?

VoIP or Voice Over Internet Protocol has been simmering for... Read More

Google Joins the Internet Phone Revolution

Its not so long ago that the idea of free... Read More

VoIP 101: Voice over IP for Beginners

For those who have never heard about the potential of... Read More