2013 National Tax Survey

Methodology

McLaughlin & Associates partnered with Penn Schoen Berland to develop and conduct a bipartisan national survey of 1,000 adult wireless phone users, who are likely voters. The survey was conducted between December 2-6, 2013. All interviews were conducted online. The survey invitations were distributed randomly within predetermined geographic units. These units were structured to statistically correlate with actual voter turnout for a general election. The accuracy of the sample of 1,000 adult wireless phone users, who are likely voters, is within +/- 3.1% at a 95% confidence interval. The survey results in this summary have been rounded and the wording for each question is verbatim from the questionnaire.

Summary

Wireless phone users remain highly satisfied customers and consider their wireless service as an essential part of their daily lives. It’s clear that wireless phone consumers are against increasing or adding new wireless taxes and fees. The majority supports Congress passing a 5-year freeze on all new wireless taxes and fees, supports continuing the moratorium on Internet access taxes and prefers creating federal guidelines that establish one fair and consistent set of taxes to apply to purchases of online digital downloads.

Survey Structure

The survey is divided into 5 sections. Jump to a section or explore the whole survey.

• Consumer Satisfaction & Lifestyle
• Taxes & Fees
• Digital Downloads

Additional Consumer Surveys

• 2012 National Tax Survey

Consumer Satisfaction & Lifestyle

Overall, are you satisfied or dissatisfied with your cell phone service?

More than 9 in 10 (94%) wireless phone consumers remain satisfied with their wireless phone service. Half (50%) of wireless consumers are “very” satisfied. This overwhelming level of satisfaction cut across all demographic groups. Only 6% are dissatisfied with their wireless phone service.

Back to Top

Would you consider giving up your home landline phone and only use a cell phone?

The majority already has (25%) or would consider (34%) giving up their home landline phone and only use a wireless phone. Two in five (41%) wouldn’t consider “cutting the cord.” Consumers 55 years old or younger are more likely to “cut the cord” than older consumers. Seven in ten (70%) senior citizens wouldn’t give up their home landline phone.

Back to Top

Do you consider your wireless service as an essential service in your everyday life?

Wireless service is clearly an important part of people’s lifestyles. Four in five (81%) wireless phone users consider their wireless service as an essential service in their everyday life.

Back to Top

Do you use a wireless device, like a wireless phone or tablet, for things related to work, school or personal management?(Work, School, Personal Management don’t equal 100% because respondents were allowed to choose multiple answers)

Roughly two-thirds (65%) of wireless phone consumers use a wireless device for things related to work, school or personal management. The majority (57%) uses a wireless device for personal management followed by work (30%) and school (12%). Consumers 40 year olds and younger and Hispanics are the most active on their wireless devices.

Back to Top

Does the wireless device make you more productive with things related to work, school or personal management? (Work, School, Personal Management don’t equal 100% because respondents were allowed to choose multiple answers)

Nine in ten (93%) consumers who use a wireless device for work, school or personal management, say it makes them more productive. Most say wireless devices make them more productive in managing their personal affairs.

Back to Top

Taxes & Fees

From what you know, about what percentage of your monthly cell phone bill is taxes and fees?

There continues to be a significant lack of awareness among wireless consumers about how much they actually pay in taxes and fees on their monthly wireless phone bills. More than one-quarter (29%) has no idea of what they pay in taxes and fees. Among those who gave an estimate, most think they pay less than 15%. The average answer is 9.8%, which is significantly lower than the national average of 17.2%.

Back to Top

Would you support or oppose Congress passing a 5-year moratorium on states or localities imposing any new or discriminatory tax specifically on wireless services?

By nearly a 3 to 1 ratio (61% to 21%), the majority supports Congress passing a 5-year moratorium on states or localities imposing any new or discriminatory tax specifically on wireless services. Over one-third (37%) would strongly support it. In last year’s online survey, 81% supported “Congress passing a 5-year freeze or moratorium on all new wireless taxes and fees, which would prohibit states and municipalities from raising taxes and fees on wireless services.” The majority (59%) “strongly” supported it and only 7% opposed the proposal.

Back to Top

Do you believe that temporarily freezing state and local wireless tax rates will have a negative impact on revenue?

By a 2 to 1 ratio (49% to 22%), half (49%) doesn’t believe temporarily freezing state and local wireless tax rates will have a negative impact on revenue. More than one-quarter (28%) doesn’t know if it would negatively impact revenues.

Back to Top

Would you be more likely or less likely to vote for a candidate for Congress or U.S. Senate who voted against temporarily freezing wireless tax rates?

By about a 2 to 1 ratio (50% to 26%), half would be less likely to vote for a candidate for Congress or U.S. Senate who voted against temporarily freezing wireless tax rates. The less likely percentage increases among consumers older than 40 years old, White consumers and Republicans.

Back to Top

Do you think the tax rate on your monthly cell phone service should be lower, the same or higher than the taxes you pay on general goods and services, which is approximately 7%?

The majority (53%) of wireless phone users continue to think the tax rate on their monthly wireless phone bill should be lower than the taxes they pay on general goods and services, which is approximately 7%. Combined, 97% believes the tax rate should be the same (44%) or less (53%) than the taxes they pay on general goods and services, which is relatively consistent across all of the demographics.

Back to Top

Do you believe a combined state and local tax rate above 17% for wireless services is not enough, about right or too much?

Four in five (81%) wireless consumers still think a combined state and local tax rate above 17% for wireless services is too much. This overwhelming sentiment cuts across all demographic and political lines.

Back to Top

Does the cost of your wireless service impact your wireless usage?

One-third (34%) says the cost of their wireless service does impact their wireless usage. The percentage grows among consumers 40 years old and younger and Hispanics.

Back to Top

If $5.00 in taxes and fees were added to your wireless bill each month, would you reduce your wireless service plan to help make up for the addedWhether it’s on a computer costs?

If $5.00 in taxes and fees were added to their wireless bill each month, one-quarter (24%) would definitely reduce their wireless service plan to help make up for the added costs. Combined, two-thirds (67%) would either definitely (24%) reduce their plan or consider it (43%). One-third (33%) wouldn’t change their plan to make up for the added costs. African-Americans, Hispanics and consumers 40 years old and younger are most likely to reduce their plan.

Back to Top

Under current law, there is a moratorium that prohibits states and municipalities from taxing your access to the internet— the monthly charge from your internet service provider. This law is set to expire in November 2014. If it expires, state and local governments would be allowed to impose taxes on your monthly internet bill. Would you support or oppose Congress continuing the moratorium, which prohibits states and municipalities from taxing your access to the Internet?

By greater than a 2 to 1 ratio (66% to 26%), two-thirds support Congress continuing the moratorium prohibiting states and municipalities from taxing access to the Internet. The majority consensus cuts across all political and demographic segments.

Back to Top

Would you be more likely or less likely to vote for a candidate for Congress or U.S. Senate who voted AGAINST continuing the freeze on the Internet access tax?

A slight majority (53%) would be less likely to vote for a candidate for Congress or U.S. Senate who voted against continuing the freeze on the Internet access tax. The less likely percentage increases among consumers older than 40 years old, White consumers and Republicans.

Back to Top

Digital Downloads

Whether it’s on a computer or a wireless device, do you consider Internet service as an essential service in your everyday life?

Nine in ten (94%) consumers consider Internet service as an essential service in their everyday life. This overwhelming sentiment is evident among all consumer demographics.

Back to Top

How often do you use your cell phone to access the Internet?

Roughly three-quarters (74%) have a wireless smartphone with Internet access. The majority (53%) regularly use their smartphone to access the Internet. Consumers 40 years old and younger and Hispanics are the biggest users of the Internet on their smartphone. Men use the Internet on their smartphone more than women. Consumers with a household income over $60K are more likely to have a smartphone and use it regularly to access the Internet.

Back to Top

How often would you say you purchase online digital downloads such as ringtones, music, videos, games, books, software or apps to your cell phone or other wireless device?

Two-thirds (66%) of wireless phone consumers purchase online digital downloads to their wireless phone or other wireless device. The younger they are, the more likely they are to purchase digital downloads and at a greater frequency. Hispanic (81%) consumers are more active in downloading digital goods than African-Americans (68%) and White consumers (63%).

Back to Top

Do you think it’s fair or unfair for consumers who buy digital goods or services to have to pay taxes from several different government jurisdictions for the same purchase?

By nearly a 6 to 1 ratio (75% to 13%), three-quarters thinks it’s unfair for consumers who buy digital goods and services to have to pay taxes from several different government jurisdictions for the same purchase. This overwhelming consensus cuts across all consumer and political demographics.

Back to Top

Which statement do you agree with more on the issue of taxing the purchases of online digital downloads?

1. Federal guidelines should establish one fair and consistent set of taxes to apply to purchases of online digital downloads.
2. Each state should have the right to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase.

By greater than a 2 to 1 ratio (59% to 23%), the majority prefers digital downloads being subject to one fair and consistent set of taxes established by federal guidelines. A little less than one-quarter (23%) thinks each state should have the right to decide how its state taxes the purchases of online digital downloads, even if it means the consumer could be subject to taxes from multiple jurisdictions for the same purchase. There remains a significant portion of consumers (18% “don’t know”) who need to be educated in order to make an informed decision.

Back to Top

Would you be more likely or less likely to vote for a candidate for Congress or U.S. Senate who voted against creating one consistent national tax framework for digital transactions?

A plurality (41%) would be less likely to vote for a candidate for Congress or U.S. Senate who voted against creating one consistent national tax framework for digital transactions; however, this message by itself still doesn’t appear to be a top reason to vote against a candidate.

Back to Top