smcallah
join:2004-08-05
Home | reply to n2jtx
Re: Once a tax...
Then why would the cellphone companies not give up collecting it if the IRS says to stop?
The cellphone companies aren't keeping the tax they collect.
Did you think they were profiting from it? |
|
n2jtx
join:2001-01-13
Glen Head, NY
 ·Optimum Online
| said by smcallah  :Then why would the cellphone companies not give up collecting it if the IRS says to stop? The cellphone companies aren't keeping the tax they collect. Did you think they were profiting from it? No I do not think they are keeping it or profiting from it. However, since customers are used to paying it already, it would not be a stretch for the cell phone companies to simply keep collecting an amount of money equivalent to the tax but pocket it instead.
Several years ago, the state of Connecticut cut its gas tax. For some strange reason (hah) in the days after the tax was lowered, the gas prices did not drop by the same amount per gallon. Turns out the gas stations kept the money as extra profit. How many people would really know that the price was supposed to drop?
--
I support the right to keep and arm bears. |
|
smcallah
join:2004-08-05
Home
| With gas, the tax is not listed as a separate line item in the price. So no one notices the tax is there.
On a cell phone bill, the taxes are all separate line items.
So in order for a cell phone company to keep collecting a tax that has been repealed, they would have to raise their rates, and not have a separate line item that said it was a tax, since it is not a tax.
So instead of a cell phone company saying you can buy their 1000 minute night and weekend plan for $39.99, they'd say it is now $42.73 on their ads? I don't think so. |
|
n2jtx
join:2001-01-13
Glen Head, NY
·Optimum Online
| said by smcallah :So instead of a cell phone company saying you can buy their 1000 minute night and weekend plan for $39.99, they'd say it is now $42.73 on their ads? I don't think so. Of course not. It will still be $39.99* as it advertised now with the "*" covering all the additional charges as it does now.
If I were the cell company, I would simply add the new increase to "regulatory compliance fee" line item.
--
I support the right to keep and arm bears. |
|
