Sunday, August 26, 2012

Internet Tax is Coming in 2013

The FCC aims to tax broadband internet access through the Connect America Fund. Like the FCC phone access fees, the government wants to "provide fairness". Now internet "fairness" is funded by fees on phones. By taxing internet access the government can shovel money to internet access providers and phone providers. You can bet that phone access fess will remain the same.

This is crony capitalism and socialism at it's worst. Companies want these government mandated fees and love the idea of claiming it is the law that demands these fees, not the beloved company. It's a racket. "Numerous companies, including AT&T, Sprint and even Google have expressed support for the idea." Well of course they have. It's income.

Julius Genachowski, the FCC's chairman, has made expanding broadband access his top priority. It's only a couple of dollars a month. But when american incomes are declining, those couple of dollars are a big deal. How about those companies deploy services that can pay for themselves and the market can bear without taxes? In other words, capitalism, instead of corporate welfare?

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