Most cities around the country rely on telephone tax revenue. In the wake of increased VoIP subscribers, cities are afraid that the loses will affect critical services they provide for their residents.
Telephone service is one of the most taxed services, coming in at between 2 - 21% of your monthly phone bill depending on where you live. Ouch!
Since VoIP is an internet based service, is virtually tax free and unregulated at this time (and should stay that way in my opinoin). There are about 1 million VoIP subscribers today, and upwards of 30 million are projected by 2009.
Read more at the Detriot News.