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By Harris R. Sherline July 28, 2008 Page 2 of 2 In addition to telephone services, electrical energy and gas utilities are also taxed. Where Does The Money Go? - The state of Washington tells us, "The majority of the funds are distributed into the state general fund. A portion, however, provides financial assistance to local governments for maintenance of public works facilities." For those who may think the utility taxes we pay are not really a major item, in 1993, Alameda County, California adopted a policy that limits the total amount for the initial utility tax year to $5,500. That's not exactly a minor expense for the average taxpayer. The public is largely unaware of the tax burden that is hidden in their utility bills, which is usually buried in state and local budgets to help finance general fund expenditures. Other Hidden Taxes - Finally, in addition to all of the above, at least two other taxes are "hidden" in our phone and utility bills, namely, the property and corporate income taxes that are paid by the companies that provide these essential services. Most people usually do not view these levies as "hidden" taxes that are paid by the consumer, but corporate property and income taxes are always built into utility rates. We don't see them because they're passed along to customers as part of the cost of delivering services, rather than as an add-on charge that appears on our utility bills. The myriad of taxes that are levied on our phone bills are another particularly insidious way of taxing Americans without their knowledge and/or consent.
--- NOTE: Read more of Harris Sherline's commentaries on his blog at "opinionfest.com." -------------------- Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA. >> Back -- Page 1 2
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