Can You Hear Me Now? Malloy Proposes Cell Phone Surcharge to Answer the Call for More State Revenue

In 2017, facing a $220 million out-year budget deficit, Gov. Dannel Malloy proposed a one-dollar per month surcharge for cellphone use, which quickly raised eyebrows throughout the state.

The cellphone surcharge would be in addition to taxes users already pay to use their mobile phones. Connecticut imposes a 7.82 percent tax on mobile service, while the federal government already imposes another 6.64 percent tax.

All told, 14.46 percent of a monthly cellphone bill goes to the government and, if some lawmakers had their way, that tax would increase with a “surcharge.”

It was unknown how much revenue the surcharge would produce for Connecticut’s government, which struggles with on-going deficits related to rising pension, retiree healthcare and debt costs, but it is another example of lawmakers reaching for anything that will sustain state government in the face of escalating legacy costs.

Malloy did not commit to the idea, he propositioned others to come forward with revenue generating ideas.

Unlike many other areas of tax policy, Connecticut actually has one of the lower cell phone tax rates in the country, according to the Tax Foundation. Illinois, for instance, imposes a 20.91 percent state tax on cell phone rates. 

Although Connecticut’s rate remains lower than most other states, it does leave open the possibility of cell phone tax increases in the future as the government scrambles to produce more revenue to pay for ongoing labor and debt costs. 

Whiting Forensic nurse convicted for patient abuse collects pension while in prison

Mark Cusson, the former nurse at Whiting Forensic Hospital who was convicted in court of abusing patient William Shehadi, is collecting an $88,229 pension while serving his sentence, according to the state’s Open Pension website. Cusson was found guilty of the abuse in August of 2019 and sentenced to 15 ...

Read More

State of Connecticut website link directed users to porn

The Connecticut state government may have a website problem, but state official are working to address it as soon as possible. A link for “Core Standards for Teachers” posted on Connecticut’s government website under “Curriculum and Instruction” directed web users to a pornographic site for those looking to hook up ...

Read More

  1. Thad Stewart

    July 26, 2020 4:26 pm

    The State already taxes your cell phone. Both 911 TAX and state sales tax on the bill itself. Another one on top of this. This really is starting to sound like the taxpayers of the State of Connecticut have a R.I.C.O. lawsuit against the party in power. Why is this type of racket ok for the political machine, but against the law when La Cosa Nostra did it?

Leave a Reply

Your email address will not be published. Required fields are marked *