The Bells Impose A Software Tax

You will now be taxed by the Bell companies for using your software.

It's the old Monty Python Dennis Moore sketch. "He steals from the poor and gives to the rich."

What you'll read in the paper tomorrow is that the FCC has agreed to allow USF fees to be collected for VOIP, but make no mistakes.  Your use of software is being taxed to pay for the Bellheads' new mansions.

The USF stands for Universal Service Fund. It is a 20th century idea to subsidize rural phone service. The idea is that it costs more to run wires out to the piney woods, folks won't do it without subsidy, so urban callers will pay into a fund which rural callers will benefit from.

And if you believe that I have a bridge to sell you.

In fact, it does not cost that much to provide connectivity in the woods anymore. As we noted yesterday, all it really takes is some simple regulations opening up use of the wireless spectrum. Run them via radio from the nearest fiber (maybe require that the rates be the same as the same company is charging down in the city) and you're done.

What has happened for years, what will happen, is the Bells will stuff this money into their pockets and do nothing for it. The whole subsidy is based on an industrial-era lie, on the high costs of wired telephony, and frankly it's unnecesary.

Much of this money is going to the Bells, supposedly, so they will wire schools for Internet service. The same Republicans who approved this nonsense used to call this the "Gore Tax," back when they were against it.

Now they're for it. Now they're charging it.

Why is a tax increase not a tax increase when it's going to a bunch of monopolist billionaires? Ask your favorite conservative that some time. I'd like an answer.

As it is, we're going to tax the future to subsidize the past, and that's just sick. How about raising the gas tax to help the buggy whip people -- they could use the money.