Several special interest groups have put an initiative on the November ballot to increase taxes on phones.

» A 400% Tax Increase – The initiative imposes a 400% tax increase on cellular, home and business phone usage. This initiative would cost consumers $540 million per year in new taxes, an amount that would likely increase in the future.

» No Cap on Tax Increase - These special interests are claiming that the amount consumers pay will be limited to “only” 50 cents a month. But when you read the fine print in their initiative, you quickly discover that the measure contains absolutely no cap whatsoever for cell phone and business customers.

» You Might Have to Pay Three Times - Even for residential customers, the tax is only limited to 50 cents per service provider. Consumers with different local and long distance companies will be forced to pay twice every month on their land line, then pay even more for their cell phone.

» No Limit on Cell Phone Taxes - The initiative’s supporters claim that their proposal limits telephone taxes at 50 cents per bill. The measure’s proponents fail to tell you that the measure contains absolutely no limit whatsoever on cell phone bills. For millions of Californians with mobile phones, the resulting tax increase will be enormous.

» No Limit on Business Phone Taxes - The measure also fails to limit the tax for business phone lines. For already-struggling small businesses, the new tax will be a major new cost.

» Crumb’s to 911 -The proponents of this initiative claim that it will help the 911 system. They don’t tell you that less than 1% of the proceeds of this initiative go to 911 communications services.

» Seniors Will Be Hit Hard – Seniors who are not on Lifeline will be forced to pay this new tax, and they’ll pay double if they have different local and long distance providers.

» No Real Accountability For Funds – The initiative would create a costly new government bureaucracy that doles out cash to hospitals and doctors, with no requirement that this windfall be used to improve health care in California. Without a mandatory audit provision, the potential for waste and fraud is enormous.