A California text message tax is currently in consideration.
Why exactly are there even thoughts about a California text message tax? It all has to do with what the state’s Public Utilities Commission considers “telecommunications” and what is an “information service.”
The organization is arguing that text messages are a form of telecommunications. If it wins this argument, then it will be able to apply that California text message tax. This is due to a program that allows it to tax telecommunications to help cover the cost of giving the same services to low income individuals.
The program that allows for this tax is in connection to landline phones and voice calls. However, it may also apply to text messages, which could help the Public Utilities Commission gain extra funds to fuel its subsidizing programs. It is worth noting that even if the California text message tax goes through, it won’t affect texts sent over messaging services, reports Fortune.
Here’s how Twitter (NYSE:TWTR) users are reacting to the news about a possible California text message tax.
- “California wants to tax text messages now, to fund free phones for illegals- uh, sorry – “low income” users…”
- “Please let this pass. 5 year retroactive tax on text messaging in California. So perfect… pass it!”
- “Of all of the insane ideas that come out of California, this one may take the cake.”
- “Well, looks like WhatsApp or Telegram is about to become MIGHTY popular in the USA! Ain’t nobody paying tax on texts!”
- “A text messaging tax. This is a REAL THING being considered in California. Sometimes I can’t wait until this state falls off into the ocean.”
As of this writing, William White did not hold a position in any of the aforementioned securities.
