Repealing the Pennsylvania Cellphone Tax Is the Right Thing to Do for Taxpayers

Bipartisan agreement is a rarity these days, especially when it comes to taxes. That’s just one of the reasons why a current proposal to repeal the cellphone tax in Pennsylvania is so compelling and overdue.

According to a November 2023 report from The Tax Foundation, Pennsylvanians currently pay some of the highest cellphone taxes in the country. However, a new proposal would change that by eliminating the six percent state sales and use tax on phone services and the five percent gross receipts tax. Both these taxes unnecessarily increase the price consumers pay for wireless service.

For many, cellphones have become synonymous with access to broadband. Young adults and low-income individuals increasingly rely solely on these devices for access to the internet. Rightfully so, Governor Shapiro made this a part of his 2023 budget proposal.

Outside of the already high wireless taxes, inflation is already making matters more difficult for Pennsylvanians. One need only to look at the recent May 2024 report by Congress’s Joint Economic Committee to see how pressing an issue inflation has become. According to the report, the average Pennsylvania household needs to spend $943 more per month to purchase the same basket of essential goods and services as in January 2021. Even if you compare costs from just one year ago, Pennsylvanians need to spend $235 per month to maintain the same standard of living.

As the government continues to increase taxes and fees on wireless, we applaud the governor and the General Assembly’s commonsense approach to putting dollars back in the pockets of Pennsylvanians. It’s time to ease the burden on taxpayers and move forward with a repeal of the cellphone tax.