It looks like the brain trust at the Federal Communications Commission (FCC) will do whatever it takes to make its cheap government internet program a success. And that’s very good news for low income Americans who can’t afford the expensive broadband internet options currently available.
The FCC wants to create a new tax on those who can afford internet access and then funnel the proceeds into Connect America Fund, an organization it created last year.
The new tax has largely escaped public notice, but now you have a chance to make your voice heard in support of this proposal and to stand up against those who oppose it.
If you do support it, you’ll be in good company with lots of good companies. AT&T, Sprint, Google and many other well-known brands have already thrown their weight behind it.
The proposed FCC program will work very much like Lifeline Assistance, the well-known free government cell phone program: Consumers pay an FCC-mandated fee on their phone bills to subsidize the cell phone program that offers free government cell phones and free minutes to needy Americans.
The FCC redirected $4.5 billion of those funds to create the Connect America Fund, a program designed to bring the cost of high-speed broadband internet access down to just $10 per month for low-income Americans who can’t afford access.
The FCC recently announced that as a result of the first phase of the
Connect America Fund, nearly 400,000 residents and small business owners in 37
states will gain access to high-speed Internet within three years. And they released a new interactive map to help illustrate areas that will receive broadband infrastructure build-out within three years through the initial roll out.
But even the FCC sees a conflict in using money earmarked for cell phone subsidies to subsidize internet access. And that explains their proposal to tax current internet users to fund the new, affordable internet access program.
The Commission proposed several innovative ways to fund the new program, such as taxing text messages or adding a flat fee on each phone line. In the end, though, the tax on current broadband users won out.
FCC Chairman Julius Genachowski says the current contribution system is outdated and full of loopholes.
“Today we propose three goals for contribution reform: efficiency, fairness, and sustainability,” he noted. “And we underscore that any reforms to the contribution system must safeguard core Commission objectives, including the promotion of broadband innovation, investment, and adoption.”
There is, however, one fly in the ointment that could play havoc with the FCC’s proposal. The Internet Tax Freedom Act prohibits the government from taxing internet access.
We’ll keep an eye on this one and report on any updates. This may well be exactly what low income Americans need to overcome the digital divide between rich and poor.
Source: TheHill.com
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