Voice over Internet Protocol (VoIP) providers would be imposed with new tax next year announced, Chairman Kevin Martin on Wednesday.
At this point of time, all telephone services including wireless, pay-phone, long-distance pay a fixed percentage of their revenues to the Universal Service Fund. Universal Service Fund is a multi billion dollar pool resource, which is said to be used to subsidize telecommunications services in rural and other high-cost areas, schools and libraries. Interestingly this fund has been alleged by mismanagement and fraud during its seven-year history.
Earlier in August, FCC’s federal-state joint board on universal service fund had already suggested VoIP providers contributing to the fund. Changes to USF have been suggested as part of a broader overhaul of the 1996 Telecommunications Act. A draft of this legislation written by members of the U.S. House of Representatives Energy and Commerce committee includes provisions on broadband and VoIP services. But with the statement by Kevin Martin yesterday this policy seems to remain a top priority by FCC in next year.
VoIP companies will likely put an additional fees onto their customers’s bill to pay for the USF fund.
Source
Universal Service Fund Tax on VoIP Providers remains a top priority by FCC
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Comments
[... I think I pay enough taxes as it is, there is no reason why anyone should have to pay a tax for VoIP communications over an internet connection that you most likely already have to pay taxes for. Since when was double taxation okay?
Universal Service ...]
The Universal Service Fund as presented by Congress, the FCC and the communications companies is illegal.
There is nothing in the Constitution that allows congress to impose an involuntary contribution (this is an oxymoron). The USF is nothing more than a sham developed by Congress, the communications companies and the FCC. It is not a tax and cannot be legally collected because it does not fit the conditions of taxation as described in the constitution. Ergo it is called a contribution and fraudulently refereed to as a charge of some sort.
I submit that Congress cannot legally mandate contributions to an independent not-for-profit company and neither can the FCC. Also telecommunications companies cannot contribute to a fund and pass that on to the consumer as a cost or a service imposed by the FCC. Therefore, it should be discontinued immediately.”