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Vonage and the Governments Failed Tax increase

Posted by Failed Success on 06/05/06 at 10:53 PM

imageNew Sales tax on Vonage lines pushes cost closer to the good ol’ Bell’s phone line cost.

The following was submitted by a friend of FailedSuccess-

As a texas resident who has Vonage and has been a happy customer in that it works, is cheap, and beats the competition hands down I was a little curious to see what states would be getting the new sales tax increase.  From several online posts it looked like Texas wouldn’t be getting hit.  (Whipe the sweat from my forehead) Well, at least thats what I thought.  Little did I know, the money grab was about to start.

The next billing cycle I had a new tax, but it wasn’t sales tax, it was a county 911 tax.  Ok so whats another 50 cents one might say, well a lot now.  Mind you its not so much about the actual cost increase,. its more about the principal of the matter.  The Baby Bells, which aren’t babies anymore, keep successfully lobbying the federal and state governments into crushing its competition.  So, I logged into my vonage account today and noticed that my bill is up again!!!  Now in addition to my county tax there is a state sales tax.  For those unfamiliar to why Vonage used to be a safe haven for those of us fed up with the Bell’s making up taxes for the poor and for profit lining let me show you a comparison:

Before new taxes:

Premium Unlimited Plan for *-(***)-***-**** (04/Feb-03/Mar) $24.99
Regulatory Recovery Fee $1.50
FET Tax $0.75
Total Amount $27.24

After tax increas #1

Premium Unlimited Plan for *-(***)-***-**** (04/Apr-03/May) $24.99
Emergency 911 Cost Recovery $0.99
Regulatory Recovery Fee $0.99
FET Tax $0.75
Total Amount $27.72

After Tax increase #2

Premium Unlimited Plan for *-(***)-***-**** (04/May-03/Jun) $24.99
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
Federal Excise Tax $0.82
County 911 Fee $0.50
Total Amount $28.29

After Tax increase #3

Premium Unlimited Plan for *-(***)-***-**** (04/Jun-03/Jul) $24.99
Regulatory Recovery Fee $0.99
Emergency 911 Cost Recovery $0.99
Sales Tax $1.69
Federal Excise Tax $0.82
County 911 Fee $0.50
Local Transit Tax $0.13
Total Amount $30.11

Thats 3 different tax revision/addons!  Outrageous is what I would like to call it.

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Previous Comments

  1. my vonage bill :
    County 911 $2.90
    FUSF $1.52
    regulatory $0.99
    911 recovery $.099
    that is $6.40 in taxes

    Posted by Thomas  on  01/03/09  at  04:38 PM
  2. Check these out:

    Regulatory Recovery Fee $0.99
    Emergency 911 Cost Recovery $0.99
    Sales Tax $1.20
    County Transit Tax $0.17
    County Football District Tax $0.02
    County District Tax $0.02

    a Country Football District Tax ?!!? WTF is that?
    So are these taxes for the County in which I live?  Is there anything I can do to protest these?

    Posted by John  on  08/14/06  at  12:29 PM
  3. What did you expect?  These minor fees are actually fees that are required by some states or federal agencies.  Vonage does not get to keep a penny of it.  Vonage doesn’t run their own 911 service, the phone company does, or the city does.  They have to pay that fee.  They fought paying it for a long time, but we all knew they were going to loose that fight.

    As VoIP becomes more popular, states are going to have to raise taxes one way ot the other.  They’re loosing millions of dollars a month in sales tax.  Would you rather they increase flat sales tax, income tax, or property tax to try to make up the difference?  You and I both know if they do, you’ll end up paying more and the rich will end up paying less. 

    Just be thankfull as Americans we pay about 40% of our total income in taxes (one way or the other).  In Europe and canada it’s over 50% in most cases.  (of course they get free medical and dental and some types of auto or home insurance thrown in, and it actually costs them less in total, but who’s counting).

    Posted by Michael  on  06/12/06  at  07:46 AM
  4. Fogot to include but my fix if not temporary for this and for those who also can do the same I would suggest it.  I have a checking account in florida still from when I used to live there.  Well all these stupid taxes do not apply there.  Check this link out to find out where you should change your billing address to: http://www.vonage.com/help_knowledgeBase_article.php?article=586&category=0

    Cost comparison:  Zip Code 32409

    Monthly Service Charge
    Monthly Service Charge$24.99
    Regulatory Recovery Fee$0.99
    Emergency 911 Cost Recovery$0.99
    Federal Excise Tax$0.81
    Total$27.78

    Cost Comparison:  Zip Code 76210

    Monthly Service Charge
    Monthly Service Charge$24.99
    State/Local Taxes and Fees$2.16
    Regulatory Recovery Fee$0.99
    Emergency 911 Cost Recovery$0.99
    Federal Excise Tax$0.82
    County 911 Fee$0.50
    Total$30.45

    Again may not be much but for a college kid on a budget every bit helps.

    Posted by Failed Success  on  06/05/06  at  11:15 PM