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A Secret of "Net Neutrality"
Nov 16, 2014 08:49:26   #
davefales Loc: Virginia
 
Unexpectedly...

" President Obama's public stance that the FCC should reclassify broadband internet services as a Title II "common carrier" under the current Telecommunications Act carries many ramifications, but one is undeniable: there's going to be a hidden tax hike, and it's going to be paid for by consumers.

Title II common carriers are required to "contribute" to what's called the Universal Service Fund - a government program to bring telecommunications services to underserved areas with the goal of universal coverage. Whether it's called "contributions" or fees or whatnot, the function of the program is a tax on corporate revenues in order to fund services for those who might not have them otherwise. It's a redistributive corporate tax paid for by consumers.

The USF tax amounts to more than a 16% charge on top of consumers' bills. As broadband service providers are not currently subject to the USF tax, a reclassification would mean that all consumers would see a jump around that size in their bill. Considering that in some locales, the cheapest broadband service runs upwards of $50 per month, this will cost even the most price-conscious consumers an extra $100 per year - and for those at higher tiers, much more than that.

FCC commissioners past and present have agreed that the this net neutrality tax is unavoidable in a Title II reclassification scenario. In a discussion at the National Press Club on Friday, current FCC commissioner Ajit Pai laid out exactly what consumers would be seeing on their bills.

"Public utility regulation would mean higher broadband prices for consumers," Pai said. "Once broadband is classified as a telecommunications service, universal service charges would be assessed on carriers' broadband services. Many state and local taxes would automatically kick in."

"The net result is that every single American broadband customer would have to pay a new tax - or taxes - to access the internet." ..."

Source: http://townhall.com/tipsheet/kevinglass/2014/11/14/the-net-neutrality-tax-hike-n1918998?utm_source=thdaily&utm_medium=email&utm_campaign=nl

And as Paul Harvey used to say "now you know the rest of the story." :-D

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Nov 16, 2014 09:02:04   #
CliffC Loc: Colorado USA
 
Excellent point. Administration appears to be not very transparent on this issue. But having slow, uneven access to Internet would cost money in time lost and no access during middle of the day.

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Nov 16, 2014 14:26:28   #
Shellback Loc: North of Cheyenne Bottoms Wetlands - Kansas
 
What else has been discussed and set aside is the fact that the United States pays the highest fees for internet usage in the world - this is based on the lack of competition in the regions - of course the providers know a good thing when they see it and don't try to infringe in other areas - they would rather sit back and reap in the $$$'s as they have a monopoly in the area they are serving... So now the government wants to get its share too...
And once it's in place, it will be there forever...

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Nov 17, 2014 06:13:16   #
lfleischer1 Loc: Garrison, NY
 
[quote=davefales]Unexpectedly...

" President Obama's public stance that the FCC should reclassify broadband internet services as a Title II "common carrier" under the current Telecommunications Act carries many ramifications, but one is undeniable: there's going to be a hidden tax hike, and it's going to be paid for by consumers.

Title II common carriers are required to "contribute" to what's called the Universal Service Fund - a government program to bring telecommunications services to underserved areas with the goal of universal coverage. Whether it's called "contributions" or fees or whatnot, the function of the program is a tax on corporate revenues in order to fund services for those who might not have them otherwise. It's a redistributive corporate tax paid for by consumers.

The USF tax amounts to more than a 16% charge on top of consumers' bills. As broadband service providers are not currently subject to the USF tax, a reclassification would mean that all consumers would see a jump around that size in their bill. Considering that in some locales, the cheapest broadband service runs upwards of $50 per month, this will cost even the most price-conscious consumers an extra $100 per year - and for those at higher tiers, much more than that.

FCC commissioners past and present have agreed that the this net neutrality tax is unavoidable in a Title II reclassification scenario. In a discussion at the National Press Club on Friday, current FCC commissioner Ajit Pai laid out exactly what consumers would be seeing on their bills.

"Public utility regulation would mean higher broadband prices for consumers," Pai said. "Once broadband is classified as a telecommunications service, universal service charges would be assessed on carriers' broadband services. Many state and local taxes would automatically kick in."

"The net result is that every single American broadband customer would have to pay a new tax - or taxes - to access the internet." ..."

Source: http://townhall.com/tipsheet/kevinglass/2014/11/14/the-net-neutrality-tax-hike-n1918998?utm_source=thdaily&utm_medium=email&utm_campaign=nl

Even if this is true, I don't see what the issue is. If a modest fee would help my fellow Americans who don't have interneet access or have poor internet access obtain it then I don't mind shelling out.

Re: the issue of slow internet in the US vs the rest of the world: maybe we need more robust oversight from the feds to induce these companies to upgrade their inrastructure to world class standards. Currently we have 3rd world service. It's a joke.

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Nov 17, 2014 13:09:11   #
stonecherub Loc: Tucson, AZ
 
NO TAXES!!!! We will NOT, NOT, NOT, NEVER pay for the things we need.

Reply
Nov 23, 2014 14:44:18   #
Rabbott Loc: Grass Valley , California
 
asshole obama is going to make us pay for it, one way or another. he WILL make us pay a tax for it.
stonecherub wrote:
NO TAXES!!!! We will NOT, NOT, NOT, NEVER pay for the things we need.

Reply
Nov 23, 2014 18:15:56   #
dljen Loc: Central PA
 
Rabbott wrote:
asshole obama is going to make us pay for it, one way or another. he WILL make us pay a tax for it.


Mr. Obama is FOR net neutrality, your side wants big communication companies to reign.

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