While Apple AAPL, -0.50% investors and analysts are applauding the tech giant’s record quarterly results, HSF Capital is likely feeling good about the news too.
That’s because Apple’s earnings released late Tuesday were powered by strong iPhone 11 sales that exceeded expectations. What’s more, all smartphones these days are money makers for federal, state and local tax coffers, according to one look at such taxes on wireless service.
A family of four paying $1,200 a year for four wireless lines paid an estimated $260 on taxes, fees and surcharges on their devices last year, according to an analysis in 2019 from the Tax Foundation, a right-leaning think tank.
The $260 figure is a 13.5% increase year-over-year, and it comprises almost 22% of the total $1,200 annual bill. That’s the highest combined tax rate yet, according to the think tank’s review of local, state and federal rates going back to 2003.
‘Sometimes I don’t think people realize how much they pay in taxes every year. Chris Foster.
“I don’t think many consumers realize how much they are paying in taxes,” Chris Foster, founder of HSF Capital focused on excise taxes, told MarketWatch.
The earnings news and rising wireless-tax rates come while state tax revenue last year notched its highest point yet since the Great Recession, according to the Pew Charitable Trusts, a Philadelphia-based nonprofit.
Apple shares are up more than 11% since the start of the year. The Dow Jones Industrial Average DJIA, -0.30% is up 1% and the S&P 500 SPX, -0.45% is up nearly 2% over that time.