When the word tax or any related manifestation of the word is mentioned in discussion, it typically makes people cringe and go blank. As consumers every thing we purchase is taxed in one form or another. Many individuals look at their paychecks and question where all their money went for their hard efforts. Common knowledge dictates that it is not a known realization as to where taxes are going. When taxes are withheld from a paycheck, the majority of individuals do not understand all of the particular taxes that are being withheld from their paychecks nor do they know fully understand how those funds are used.   My belief is simple; most individuals speculate what happens to the taxes after it is withheld from their checks. There are often many questions about taxes that it can become complicated to explain. Companies are taxed for the goods they produce or manufacture as well.
    One of the most discussed tax issues is the cellular phone tax. A cellular phone is a commodity that a great number of individuals have become accustomed to having. This dependency may possibly be to blame for the high amount of taxes that consumers and producers are charged for the use and manufacture of cellular phones.   In recent years, Telecommunication charges have more than doubled for most states. This tax increase affects things such as supply and demand, and the equilibrium of price and quantity.
According to the Tax Foundation, “ In the last decade, the number of U.S. cell phone subscribers has quadrupled, from 55 million in 1997 to over 250 million in 2007. That period has also seen a fall in landline telephones (the number of which dropped to 170 million), and 2007 marked the first year that Americans spent more on cell phones than on landlines.” (Chamberlain, A., (2005))
    One of the reasons for this tax increase for many states is because of the decline in the conventional phone taxes because most people use cell phones rather than the conventional land lines....