Is 46% Taxes Reasonable?
VoIP is one of the best things that the Internet era has brought to the world, even if Vonage is having trouble right now staying afloat.
While it’s here, you surely should look at Vonage and other VoIP providers for cheaper long distance for your home or business. That’s one of the main reasons why you get a broadband phone line – save money.
But after looking at your bill, you may not think that VoIP is really there to save you money. Take a look at one of my VoIP line bills that I received from Vonage recently:
(click image for full-size detailed copy of the bill breakdown)
Since it’s an extra line, I was persuaded by customer service to go on the $9.99/100 minute plan with unlimited voicemail, unlimited incoming calls, etc. So for $120/year, it’s not a bad investment to have a separate additional dedicated number.
But when I received the first bill, I was amazed to see that my $9.99 plan had a WHOPPING 46% IN TAXES AND FEES added onto the Vonage bill. For me personally, I’m keeping this rediculously tax-heavy plan, but it may not make sense for others.
LESSON: Make sure you pick the right plan for your needs otherwise you might be slammed with taxes and fees that are not quoted in the sales materials which really affect your bottomline.