To the California dealers and sales reps...
Cell phone carriers subsidize phones through the monthly bill, essentially the customer is paying for their phone over time.
California taxes the hell out of those monthly bills.
California also makes consumers pay tax on the full retail value of the phone, regardless of what price they are paying for the phone at time of activation.
How is this kind of double-taxing legal?
This can easily be demonstrated through tmobiles even more and even more plus plans. The company doesn't charge you a monthly subsidy fee if you purchase the phone outright.
I just can't believe no one has filed suit over this. It blew my mind when I found out.
Though maybe if people actually understood how subsidized pricing works they may act less stupid. I doubt it but one can always hope.
Even if you get a free phone, at the point of sale you have to pay tax on the full retail value of the phone, not what you actually paid.
The phone is subsidized through the plan, and you are paying taxes on your monthly bill.
point being, if you have to pay tax on you're bill, which in part covers the cost of the phone, why are you paying tax at the point of sale as well?
As far as I know this happens only in California.
I see where your going with your argument, but you are leaving out some key details.
It's not something the cell phone company can fix. Better to go to your local tax assessor to see about making any change.
My head is going to explode.
Not your fault man, but seriously, I can't believe that no one in this thread seems to realize that one simple fact.
Carriers explain away the high cost of the bill through phone subsadies.
Why would you need to pay a "cost recovery" aka cancellation fee if the cost of the phone wasn't worked into the bill???
I have never in all my time since having a phone have heard anyone but this thread say phone bills are high because of phone discounts. This would mean if I pay retail my phone bill will be cheaper.
Mr. Scary said:
The way anything is legal. It's legalized through the legalization process.
Likewise, conversely, something is illegalized through the legalization process.
Ever wonder why you need to "renew" your registration every year or 2? It's more or less a property tax, but for your car. Think about it, if your car is registered once, and the driver never changes with it, why does it have to be "renewed".
Welcome to America, bend over, because we're going to get your money. One way, or the other.
My only problem is that citing other injustices doesn't make the current injustice OK, it only adds to the idea that our government is made up of thieves.
This crap needs to stop.
it only adds to the idea that our government is made up of thieves.
please please educate me how a state taxing something has to do with the government? ha ha think about it.
yes i don't agree with the so called "double taxing" but i don't see how a state doing this can be pointed at the government?
but i don't see how a state doing this can be pointed at the government?
I think you are mistaking federal government for state government... both are forms of government, and both are run by criminals.
call me unpatriotic & i will definitely be that...i don't like being like the rest of the sheep & just blindly be guided where the wolf in shepherds clothing directs me.