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School Internet Plan Would Raise Phone Taxes 17.2%

Nov 17, 2014, 11:49 AM by Eric M. Zeman

The FCC will propose to increase spending on school internet services, and the money will come from a surge in taxes on wired and wireless telephone bills. Under the FCC's proposal, which is not yet public, it will increase the annual cap on school internet spending from $2.4 billion to $3.9 billion. The $1.5 billon jump in spending will be covered by a tax-rate increase of 17.2%, according to FCC Commissioner Ajit Pai, who disagrees with the proposal. "I strongly oppose this 17.2% tax increase. Instead of imposing a greater burden on families struggling to make ends meet in this lackluster economy, the Commission should pursue fiscally responsible reforms. These reforms would cut the bureaucratic red tape and focus resources on the children and library patrons of poor and rural America, where the need is greatest." This tax increase will apply to all phones in the country. The FCC estimates most lines will see a jump of $2 per year, with households (assuming multiple lines) will see a jump of $6. The increase would apply to the Universal Service Fund portion of phone bills, which the government has been trying to overhaul for some time. The government would draw from the USF to improve fiber optics connecting schools to the internet, and the Wi-Fi in schools buildings themselves. "While the impact on consumers will be small, the impact on children, teachers, local communities and American competitiveness will be great," said the FCC in a statement. The CTIA Wireless Association generally opposes any new taxes levied against wireless phone bills. The FCC's proposal will be discussed openly at the agency's Dec. 11 meeting.

New York Times »

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Comments

This forum is closed.

This forum is closed.

crood

Nov 17, 2014, 12:05 PM

"Impact on the consumer will be small.."

More government B.S. They work this by raising a little here and a little there. No one increase is all that much, but add them all together and it takes a big chunk out of people's income. Then they take the revenue and use it to shift other tax revenues to other things. That's how the whole lottery/education thing works. The money from the lottery goes to education, but the tax money that used to go there, goes somewhere else. Litttle to no net increase

If they had any guts, there would be one tax used to fund the entire government. No nickel an diming with gasoline, alcohol, phone service, etc. Have the guts to make the people actually have to write their check to the government and see how that works instead of hiding them in ...
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netboy

isnt income tax at 30% ?
they take 30% off your paycheck.
then when you go buy stuffs, they taxes you again !
in calfornia is almost 10% sale taxes!

you making 10$ a hour, reality is you only making 6$ a hour !

...

T Bone

Historically, no tax increase is ever enough, because whenever government revenue goes up by $1, there is a $1.20 increase in spending, which means that whenever government revenue increases, government debt increases at a faster rate.

lanmansa

17.2 percent increase is a heck of a lot more than $2 per year in taxes! Heck, since my bill is over $150 a month, I'm sure 17.2 percent of that will be a heck of a lot more than $2 a year, and more than $2 a month even. Not sure how they are calculat...
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Globhead

Nov 17, 2014, 2:08 PM

Forget about the %

Why are federal agencies trying to decide what local schools spend?

And why are phones simultaneously excise-taxed as a luxury item while subsidized for poor people as a necessity of life?

T Bone

"And why are phones simultaneously excise-taxed as a luxury item while subsidized for poor people as a necessity of life?"

I imagine it is the same reason that government increases the tax on cigarettes to encourage people to quit, and then turns a...
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thebriang

Nov 17, 2014, 1:51 PM

Hows that e911 upgrade coming along?

I was hoping they might finalize that e911 rollout and stop charging me that fee Ive been paying since like 1997 before they put in a new flat line fee.

T Bone

And don't forget, there is still a 'telephone luxury tax' imposed in 1898 to pay for the Spanish American War, that particular fee is still on our phone bills every month. Isn't that war paid for by now?

GravityFails

Nov 17, 2014, 4:25 PM

Lie Down Before You Hurt Yourself

If you read the Times article regarding the "tax increase," you'll see that what they're talking about is a 17.2% increase in the Federal Universal Service charges, NOT an equivalent increase in all the taxes on your bill.

For example, with three phones on contract with Verizon, I'm paying a total of $5.40 per month in Federal Universal Service charges. If this thing passes, and you know it will, I'm looking at an increase of $0.93 per month. Not exactly the end of the world.

Do I want the Federal government sticking its wet, meddlesome nose into every tender crevice of my life? Not even a little. But if you're going to get pissed off about something (and there's plenty of things to be pissed off about, let me tell you), it should be ...
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T Bone

"If you read the Times article regarding the "tax increase," you'll see that what they're talking about is a 17.2% increase in the Federal Universal Service charges, NOT an equivalent increase in all the taxes on your bill. "

I DON'T CARE

Wirele...
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