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FCC eyes tax on Internet service
The Federal Communications Commission is eyeing a proposal to tax broadband Internet service.
The move would funnel money to the Connect America Fund, a subsidy the agency created last year to expand Internet access.
The FCC issued a request for comments on the proposal in April. Dozens of companies and trade associations have weighed in, but the issue has largely flown under the public’s radar.
“If members of Congress understood that the FCC is contemplating a broadband tax, they’d sit up and take notice,” said Derek Turner, research director for Free Press, a consumer advocacy group that opposes the tax.
Numerous companies, including AT&T, Sprint and even Google have expressed support for the idea.
Consumers already pay a fee on their landline and cellular phone bills to support the FCC’s Universal Service Fund. The fund was created to ensure that everyone in the country has access to telephone service, even if they live in remote areas.
Last year, the FCC overhauled a $4.5 billion portion of the Universal Service Fund and converted it into a broadband Internet subsidy, called the Connect America Fund. The new fund aims to subsidize the construction of high-speed Internet networks to the estimated 19 million Americans who currently lack access.
serfer62
August 27th, 2012
Wow! What a greatr idea…a new tax just before the election!
Who mastermined that? Rove?
moarkdave
August 27th, 2012
Of course the companies support it.
They pass it on to the consumers and no problem for them.
Like most taxes that companies like this collect, they will get to retain a portion of it as payment for their costs to collect it and send it into the government.
cfm990
August 27th, 2012
Wait a minute. I thought they were trying to get people to move into an urban setting. Once you bring the porn to the corn, them boys ain’t never gonna leave the farm.
Stranded in Sonoma
August 27th, 2012
This would not be an easy thing to do for most people but if you want to end this, just wait for the tax to be enacted and then cancel your internet service. Be sure to tell your ISP why you did.
If enough people did that it would put a pretty big hurt on some internet-based money making. Sorry BFH, but those are facts and the only way to stop a tax like this is to show the gov’t that they’re not collecting any money from it. Or very little.
Roscoe P. Soultrane
August 28th, 2012
But corporations are conservative!!!
Or really, really socialist – whichever.
vetgal1970
August 28th, 2012
I live in the boonies, I barely have a dial tone on my landline. I have broadband, which I happily pay for. So access is already available, it’s just not ‘free’.
Typical of the government: tax something so they can expand it, so they can get more taxes from it. Nothing more than a bunch of thieves.
Pound Sand and leave us alone
Navy Squid
August 28th, 2012
Yet another “freebee” for the freeloaders at the expense of the middle class. Just like free cell phones, free housing, food stamps, tanif, earned income credit, etc. etc. Like the “Gore” tax on cell phones that was quietly put in place years ago. They just won’t quit!!!
Xavier
August 28th, 2012
Look up Wilson, NC and how they installed a municipal fiber optic system after no internet companies would provide service to them.
Then read how they were sued by Time-Warner for doing so.
That tells me: 1) cities and towns can handle ISP/phone/cable TV on their own and profit from it, and 2) the whole “ISPs need government help” is just BS to get taxpayers to pay for infrastructure up front.