FCC Approves New Internet Phone Taxes

basotl writes to tell us CNet is reporting that the FCC has approved a new round of taxes for internet phone service. Some 4 million users could receive this nasty little surprise as early as their next monthly bill. From the article: "The VoIP industry wasn't alone in questioning the FCC's move. In a letter sent last week to commissioners, attorneys for the U.S. Small Business Administration urged the agency to postpone its action until it had done a thorough analysis of the economic effect on smaller providers."

so why didn't they tax the rest of the internet?

[Doppler00]

A VoIP call is just another internet connection between two individuals, sending data back and forth. What makes VoIP so special that it needs taxation? Are they going to tax internet video conferencing and Netmeeting next? Instant messaging? Just another example of old people in government not understanding the differences in new technology.

Oh also that fund that is supposed to "subsidize" rural areas is such a waste. My parents have lived in a rural area for years without DSL and it wasn't made available until a couple years ago. And then, it's 128kbps and it wasn't funded by this stupid fund, but by the local telephone co-op. I'd rather the tax go away.

DAMMIT!

[Cleon]

Would it kill the FCC to allow us to communicate WITHOUT paying protection money?

This outfit is getting entirely too powerful. This crap has to stop.

Civics?

[pete-classic]

Does the FCC have the authority to levy taxes? Isn't the FCC an executive agency? Have we stopped even pretending that we have a constitutional government?

-Peter

What really irritates me about this tax

[ScrewMaster]

is that I'm already paying communications taxes (of various sorts levied by various taxing bodies) on my Internet connection. Actually, in my case it's a significant chunk of my monthly bill. In any event, this is a discriminatory tax squarely aimed at smaller companies providing an Internet-based service that inconveniences the incumbent telephone companies. So far as I'm concerned it's double-taxation as well, if I happen to use a VoIP service. Way to go, FCC. Let's just open the door to taxing everything on the Internet ... if you can tax me because I happen to use packets formatted for this purpose, what stops the government from taxing packets formatted some other way. Ridiculous on the face of it.

Re:Civics?

[Registered Coward v2]

Does the FCC have the authority to levy taxes? Isn't the FCC an executive agency? Have we stopped even pretending that we have a constitutional government?

It is not a tax - it is a fee - look at what your bill says. There is no real difference but the name does count becsue agencies can charge fees - and most do.

VOIP has been getting a free ride since they can connect with the landline but have avoided the fee - I'd like to see them junk the fee but that won't happen. It's a good thing that Repiblicans are for less government and working on important issues like banning gay marriage instead of worrying about what they've done to our economy. Where is Goldwater when the Republicans really need him.

From a personal perspective, VOIP is still cheaper since I have a phone in Eiurope and the US and all calls are local.