Fccs Proposed Change Could Raise Phone Taxes

Fccs Proposed Change Could Raise Phone Taxes



FCC's Proposed Change Could Raise Phone Taxes
Americans are speaking out against a​ proposal by the​ Federal Communications Commission (FCC) that could raise millions of​ people's phone bills .​
The proposal by FCC Chairman Kevin Martin has to​ do with a​ tax called the​ Universal Service Fund (USF) .​
The USF tax was established to​ help ensure that low-income and rural consumers have access to​ affordable phone services .​
Currently,​ USF money is​ collected on​ a​ pay-for-what-you-use system; a​ tax based on​ how much interstate long distance a​ person uses .​
The less a​ person uses long distance,​ the​ less he or​ she pays .​
However,​ the​ FCC is​ proposing a​ monthly flat fee instead .​
The proposed monthly flat fee would apply to​ all phone numbers and other connections,​ regardless of​ how few interstate long-distance calls are made .​
That could raise taxes on​ 43 million U.S .​
households by more than $700 million .​
Callers in​ California,​ Florida,​ Illinois,​ Maryland,​ Massachusetts,​ Michigan,​ Minnesota,​ New York,​ Ohio,​ Pennsylvania,​ Texas and Virginia stand to​ be the​ biggest losers .​
Taxpayers in​ 10 of​ those 12 states-all but Texas and Minnesota-already pay more in​ federal USF taxes than their states get back for schools,​ hospitals and rural connectivity .​
Under the​ proposed FCC plan,​ that disparity would grow even wider .​
The most conservative estimate of​ the​ proposed plan-where the​ USF fee would shift from the​ current structure to​ a​ flat $1 fee,​ per phone line,​ per month-indicates that 11 of​ the​ 12 states would end up paying more into the​ USF than they currently do .​
According to​ the​ Keep USF Fair Coalition,​ a​ consumer advocacy group,​ this USF proposal has grave implications for the​ future of​ telephone service nationwide .​
The proposed USF change also affects anyone who has friends or​ relatives in​ any of​ those 12 states,​ or​ does business with a​ person or​ company located there .​
With low-income and elderly consumers already hit with high gas prices,​ higher home energy costs and continued inflation in​ medical prescriptions,​ the​ wide range of​ diverse groups in​ the​ Keep USF Fair Coalition is​ opposing the​ FCC's proposed number-based plan .​
These groups caution against balancing USF finances on​ the​ backs of​ the​ very consumers whom they were intended to​ help.




You Might Also Like:




No comments:

Powered by Blogger.