Cable Modem Tax Proposed by FCC

TheSync writes "News.Com has an article by Declan McCullagh that says the FCC is considering a new tax of up to 9.1% on the revenue of cable modem providers. This is an expansion of the existing universal service fund, which currently does not apply to cable services. The USF could even be expanded to wireless IP and VOIP providers as well, expanding the fund to over $13 billion."

Comments

Universal Service Fund

[frieked]

Well, I can't really say that this surprises me and as much as it may suck that my cable bill would go up, at least the money is going to some somewhat good causes:

About 85 percent of the fund's revenues are split between two causes: the "e-rate" program (40 percent), which subsidizes school and library Internet connections, and rural telephone companies (45 percent), which might otherwise end up paying more for telephone service than city dwellers. The remaining 15 percent goes toward discounts to low-income subscribers and funds rural health care.

Re:Universal Service Fund

[srvivn21]

It's called tele-health. Video teleconferencing so you can have one doctor covering a few hundred (or thousand) square miles. Internect connections fast enough to send X-Ray scans and digital pictures. Telephones so you can confer with specialists.

It's not about paying for the medical workers or supplies. Hope this doesn't come across too short and/or abrasive. There's a lot of misinformation, and I'm spreading myself thin...

The motherload of Universal Service debate.

[deathcow]

Is it about connecting phones with phones? Or people with people?

This already exists with DSL

[grandmaster_spunk]

It's important to note, as the CNET article does, that DSL service is already subject to this tax, and the change will really only put DSL and cable on equal footing. Seems reasonable enough to me, especially considering that, at least in theory, the money collected goes toward things like providing internet access for libraries and whatnot.

Re:Yeah, way to stimulate the economy!

[heli0]

http://www.cato.org/fiscal/2002/factsfigs.html

"The share of all individual income taxes paid by the highest-income 1 percent of households was 36 percent in 1998."

"the top 5 percent of households pay 56 percent"

"In 2001, 36 percent of U.S. households, most earning less than $40,000, had income tax liabilities of zero"

Yes that's right, 36% of households pay NO income tax!!!

Would you like their tax rate to be below 0%? For many of them it is, in the form of the EITC.