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FCC Eyes Tax On Internet Service


The Federal Communications Commission is eyeing a proposal to tax broadband Internet service.

The FCC issued a request for comments on the proposal in April. Dozens of companies and trade associations have weighed in, but the issue has largely flown under the public’s radar.The move would funnel money to the Connect America Fund, a subsidy the agency created last year to expand Internet access.

“If members of Congress understood that the FCC is contemplating a broadband tax, they’d sit up and take notice,” said Derek Turner, research director for Free Press, a consumer advocacy group that opposes the tax.

Numerous companies, including AT&T, Sprint and even Google have expressed support for the idea.

READ MORE: THE HILL



6 Responses

  1. Of course they want to tax it.

    As President Reagan said so eloquently:

    “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

  2. It’s not a tax. Federal taxes are collected by the government and deposited in the US Treasury. The fees proposed by the FCC are to be paid by the internet services providers who utilize the networks upon which their services are provided. The ISPs would be expected to pass the fee along to their customers as a line item charge on monthly bills. The theory is that if you use a network, you pay for it. No different than tolls on the turnpike.

  3. 3. So why would FCC make money on it? If its a “fee” then the ISPs should charge for it.

    Call it what you want but with FCC involved its a tax!

  4. #3 telegrok: That was a pretty boneheaded comment. “It’s not a tax.” Who exactly is collecting this new fee? The government! Thus a tax. “The theory is that if you use a network, you pay for it. No different than tolls on the turnpike.” Umm, the customer already IS paying for the network/turnpike. And the internet services providers who utilize the networks upon which their services are provided are ALSO ALREADY PAYING their uplink providers.

    So it’s all private industry and everything is being paid for. Obama wants to stick governments ugly nose in and steal, err tax, the pipeline.

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