Broadband ‘tax’ may be in the works to expand high-speed internet access

The subject of taxation on the Internetis once again on the radar of politicos in Washington.

Federal Communications Commission officials are considering a proposed tax to be levied to all broadband internet connections nationwide. The tax would work the same as theUniversal Service Fund, a government-imposed fee that appears on all phone bills to ensure ubiquitous access to telephone service.

President Barack Obama made the concept of broadband access for all a cornerstone of his technology platform. While a noble idea, it will cost a good deal of money, and in some areas may not be a profitable venture. Thus, a fund like the USF, this time called the “Connect America Fund,” has been set up by the FCC.

Agency officials claim many as 18 million more Americans could gain broadband access over the next decade as a result of the new tax. With 19 million currently without broadband service, that means nearly the entire nation would be covered by high speed access by 2020.

The fee has some high profile supporters. Major technology companies — including AT&T, Sprint, and Google — have already expressed support for the idea. These companies obviously stand to gain from a government subsidy, since they are the ones providing the service. Others disagree, saying the FCC is moving ahead without any oversight from Congress.

“The FCC had no business taking money from a fund dedicated to expand phone service and creating a broadband internet subsidy,” writes Rick Moran of the conservative political blog American Thinker. “Creating another tax to subsidize internet expansion for large companies is unnecessary and will only lead to greater control of the Internet by government. Congress should wake up and nix this effort before it gets started.”

Regardless of whether you want to call it a fee or tax, or what have you, is some type of subsidy necessary considering our modern economy? You could argue yes. An increasingly larger portion of our economy depends on high-speed internet to get things done. Without any push to get the underserved connected, are we developing a class of the internet have-nots, where the benefits of our modern digital economy become harder to obtain?

It’s something to think about.

click here and download latest