The $240-a-Year Bill You Don’t Know You’re Paying

The $240-a-Year Bill You Don’t Know You’re Paying

Telephone Service

The only federal telephone tax is a 3 percent charge on local telephone service, expected to raise $751 million this year for the general federal budget.The Federal Communications Commission imposes a fee on telephone companies -- currently 14.4 percent of residential and business customer revenues -- for the Universal Service Fund that subsidizes phone service for low-income and rural Americans, as well as schools and libraries. A Telecommunications Relay Charge helps pay for the center that transmits and translates calls for the hearing- and speech-impaired.

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