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 [email protected].

In The News:

VoIP Business  WhaTech

VoIP and 911 Warning

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

Will VoIP be a Mass Market Product?

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

How Much Bandwidth is Required for VoIP Phones?

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

Faxing over VoIP

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

Needless HIGH RISK Exposure For Business Using Computer Phones

The Facts? Computer phones (VoIP) offer the most optimal means... Read More

Will the Bell System Survive? A Massive Transfer of Wealth from Bell to VoIP is Underway

Will the Bell System Survive? A Massive Transfer of Wealth... Read More

Is VoIP Good For The Home?

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

What?s Your IQ on Basic PC Phone (VoIP) Knowledge

Short T/F quiz1. T / F You can save a... Read More

VoIP: Finally Worth a Look

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

The Lowdown on VoIP

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

Bluetooth Computer Headsets - Enjoy Wireless Freedom

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

VoIP in the Home

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

Take Advantage of Internet Phone Calls (VOIP)

Voice Over IP (VOIP) is a relatively new technology. Voice... Read More

VoIP Overview

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

Security, Stability, and Interoperability Issues on VoIP Implementation

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

VoIP - What is the Problem?

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

Voice over Internet Protocal VoIP for Business

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

VoIP 101: Voice over IP for Beginners

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

VOIP Questions and Answers

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

Making PC to Phone VoIP Calls over Dial-Up Internet Connections

There's a lot of hype these days surrounding Internet-based voice... Read More

Alarm Systems & VoIP (Voice over Internet Protocol) Phone Lines

An astounding and unexpected number of people are dropping their... Read More

Is VoIP the ?Next Big Thing? in Telecommunications?

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

Finally Voip Worth a Look!

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