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Home Broadband

The Bells Impose A Software Tax

by Dana Blankenhorn
June 22, 2006
in Broadband, Broadband Gap, Communications Policy, Internet, politics, regulation
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Dennis_moore
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.

Buggy_whiips
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. 

Tags: FCCGore taxInternet taxRepublican tax increasetaxUniversal Service FundUSF taxVOIP
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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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Comments 2

  1. Thuktun says:
    19 years ago

    Unfortunately, your Dennis Moore quote is taken out of context. He actually steals from the rich and gives to the poor, but transfers lupins (the flowers) instead of anything useful. This is really the point of the character: someone who think’s he’s doing something right, but isn’t really doing anything useful.
    Only at the end do the theme singers change it to sing about him stealing from the poor and giving to the rich, but it’s a bit of amusing word play rather than anything substantial to the plot.

    Reply
  2. Thuktun says:
    19 years ago

    Unfortunately, your Dennis Moore quote is taken out of context. He actually steals from the rich and gives to the poor, but transfers lupins (the flowers) instead of anything useful. This is really the point of the character: someone who think’s he’s doing something right, but isn’t really doing anything useful.
    Only at the end do the theme singers change it to sing about him stealing from the poor and giving to the rich, but it’s a bit of amusing word play rather than anything substantial to the plot.

    Reply

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