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One of the biggest things that VOIP has going for it is the fact that is costs way cheaper than traditional telephony and one of the main reasons for this low cost is the fact that VOIP services are not subject to the same taxes and charges that traditional telecommunications providers are. So what happens if VOIP providers become taxed? In Los Angeles, California, it seems that they are taking this route. Steve Stanek writes in Heartland:
Los Angeles voters have imposed a 9 percent tax on Internet phone calls, known as VoIP (Voice over Internet Protocol). VoIP calls had been tax-free in the city. Voters also enacted a 1 percentage point reduction in the tax on all other phone calls, from 10 percent to 9 percent. Most phone calls are still made over traditional wireline or wireless phones, but Internet phone service is a rapidly growing segment of the telephone market.



