Line-Based Taxation: Telecom Companies Address a Complex Legacy

“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius—and a lot of courage—to move in the opposite direction.” ― Ernst F. Schumacher

Given the dramatic transformation of telecommunications taxes and technology in recent decades, it will take extensive knowledge to manage the extreme complexity of line-based taxation requirements confronting telecommunications providers. While a handful of U.S. jurisdictions have shown a willingness to attempt to simplify its line-based taxation process, the demand for more telecommunications technology and services, shrinking state revenues, and the likelihood of new telecommunications-tax legislation are considerably more likely to intensify line-based taxation in the short term.

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