MyWireless.org^® 2012 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 November 28 and December 1, 2012. All interviews were conducted online. Interview selection was at random 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 are highly satisfied customers and view their wireless service as an essential part of their lives.
• It is clear that wireless phone consumers are against increasing or adding new wireless taxes and fees. An overwhelming majority supports Congress passing a 5-year freeze on all new wireless taxes and fees and the majority prefers creating federal guidelines that establish one fair and consistent set of taxes to apply to purchases of online digital downloads.

Consumer Satisfaction & Lifestyle Back to Top

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

More than 9 in 10 (94%) wireless phone consumers are satisfied with their wireless phone service. The majority (51%) is “very” satisfied. This high level of satisfaction is broad and intense across all demographics. Only 6% are dissatisfied with their wireless phone service.

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

The majority already has (29%) or would consider (31%) 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. Four in five 18-29 year olds already have (38%) or would consider (44%) giving up their home landline phone. Conversely, nearly two-thirds (65%) of seniors wouldn’t give up their home landline phone. More women (31%) than men (25%) have already “cut the cord.”

Do you consider your wireless service as essential as utilities, home landline phones or cable television?

Wireless service is clearly an important part of people’s lifestyles. Four in five (81%) wireless phone users consider their wireless service as essential as utilities, home landline phones or cable television.

Does a wireless device make you more productive at work?

Among those who use a wireless device for work, 81% believe the wireless device(s) make them more productive at work.

Taxes & Fees Back to Top

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

There is a significant lack of awareness among wireless consumers about how much they actually pay in taxes and fees on their monthly wireless phone bills. One-quarter (25%) 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 9.9%, which is significantly lower than the national average of 17.1%.

Would you support or oppose 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?

There is overwhelming support (81%) for Congress to pass a 5-year moratorium on all new wireless taxes and fees. The majority (59%) “strongly” supports it. Only 7% opposes the proposal. This level of support is both wide and deep among all political and demographic groups. Eight in ten Republicans, Democrats and Independents favor freezing wireless taxes and fees.

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

The majority (58%) doesn’t believe temporarily freezing state and local wireless tax rates will have a negative impact on revenue. Only 16% believes it will have a negative impact and one-quarter (26%) doesn’t know.

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 (54%) of wireless phone users 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, 98% believes the tax rate should be the same (44%) or less (54%) than the taxes they pay on general goods and services, which is relatively consistent across all of the demographics.

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

More than 4 in 5 (84%) wireless consumers believe 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.

Digital Downloads 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?

Three in five (61%) respondents 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. African-American (71%) and Hispanic (75%) consumers are more active in downloading digital goods than White consumers (56%).

Should multiple state and local jurisdictions each have the ability to impose their own tax on a digital good or service, such as an app, ringtone or video, even if it means you could pay multiple taxes for the same digital good or service?

By a 7 to 1 ratio (73% to 10%), nearly three-quarters believe multiple state and local jurisdictions should not have the ability to impose their own tax on a digital good or service if it means that you could pay multiple taxes for the same digital good or service. This majority consensus is evident among all demographic and political segments.

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 a 3 to 1 ratio (61% to 20%), the majority prefers digital downloads being subject to one fair and consistent set of taxes established by federal guidelines. One in five (20%) 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.