Some members of Congress want to tax the Internet, and they’re trying to do it under the guise of “telecom reform.” That’s a trick Americans won’t like. It’s time to send Washington a message, loud and clear: hands off the Internet.
During hearings on a government tax and welfare program called the Universal Service Fund (USF), Senate Commerce Committee Chairman Ted Stevens (R-Alaska) sang its praises. “Without Universal Service, just having a dial tone would average about US$200 per month” for some Alaskan residents, he said.
USF has long been a wealth transfer from cities to rural areas, but now that broadband services are being deployed all over the country, someone should tell Senator Stevens that the rationale for the subsidy is gone. Indeed, according to new numbers from the Pew Internet and American Life Project, adoption in rural areas is now occurring at a faster pace than in more populated regions. This should make it a no-brainer to phase out the telecommunications tax and welfare system, but that’s not what some powerful senators want to do.
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