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FCC Wants VoIP Users to Pay Tax, Too

By Ed Oswald, BetaNews

December 15, 2005, 1:50 PM

The FCC will likely force Internet telephone, or VoIP, providers to contribute to the Universal Service Fund, a program that helps subsidize telecommunications services in high-cost regions of the country, and in schools and libraries.

The comments came from FCC Chairman Kevin Martin, who spoke Wednesday in Washington at a question and answer session hosted by Comptel, a group that represents communications service providers.

Some VoIP companies are already contributing to the fund either directly through payment to the USF, or indirectly by payments to the telephone companies, which in turn contribute a portion of that revenue to the fund.

Regulators say that without a clear policy, as VoIP gains popularity the fund could shrink due to the fact that providers aren't mandated to contribute.

It's not clear if the policy would only include VoIP providers like Vonage, or also software-based offerings from companies like Skype, Yahoo and Microsoft. However, Martin did say that the government needed "to move to collection for the Universal Service Fund that is technology-neutral," possibly suggesting these services could be taxed as well.

In any case, the change must first start with Congress, Martin said. Legislators are currently considering a revision of the 1996 telecommunications bill that would add a provision to mandate payment to the USF from VoIP providers.

Various versions of the revision are expected to be debated in Congress next year.

Add a Comment (23 Comments)

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By kazil

edited Apr 9, 2006 - 2:52 AM

Respective Members of the FCC and Respective Readers.

I do think that with companies such as Kazil
( http://www.kazil.com/freephonecalls )

you can become a retail customer and speak for FREE with all the members in the network worldwide Independently on a PC/Laptop or through the soft phone in your PC.

In addition Kazil Company offers the lowest rates I came to know in the market in order to call people that didn't become a member yet.

( http://www.kazil.com/callrates.asp )

Using wisely the offered advance technology products and solutions you may speak for FREE with all your friends once they become members too, and cut down your monthly phone bill by 50% to 80% depending on the called destinations.

The institutionsm, universities can do the same and reduce the phone bills to almost zero.

If this is the situation, why do you still need the taxes?

The telecommunication is FREE for as long as you call a member, the rates are low, and no one has to pay more than US$ 10 to become a member and some amount every six months to keep a virtual US Numbers.

Dears, this is worldwide.

Get ready for the coming Telecom consolidation.

I'll welcome any comments you may have and feel free to drop me an E-mail to sambezek@gmail.com

Score: 0

By Zorro de Angel

edited Dec 16, 2005 - 10:26 AM

Hey iamtux,take your rightwing conservative claptrap BS somewhere else!!! This forum is for the exchange of information and technology!!! NOT YOUR IDEOLOGY !!! Here is a site you should visit (www.****thesouth.com).So you can get an idea of what most people think of folks like you.HAPPY HOLIDAYS!!!

Score: 0

By skorpian

posted Dec 16, 2005 - 8:13 AM

This would set a dangerous precedent. When VoIP gets taxed, then practically anything over IP can get taxed. As it stands now, practically every technology over IP is a means of communication (e.g. e-mail, video, html, etc.) If they want to get more money for taxes and make things simple at the same time, they should focus their efforts of implementing a flat tax. This flat tax could be based on a 10% commerce tax on everything we buy since that would avoid people that work "under the table" and get away with paying taxes. If everyone just paid that 10% flat tax, then you wouldn't have to hire a CPA to get your taxes done to make sure you're not getting screwed at tax time. Don't get me wrong, I'm all for taxes...I just think it's too complicated and not efficient by any means and this new proposal for taxing VoIP is just another band-aid on a much larger problem.

Score: 0

By ghammer

posted Dec 15, 2005 - 11:53 PM

Taxes?
Nah, they are 'user fees'
Hey! Maybe with this they'll be able to rescue people who are in the path of a hurricane.
Maybe build a levee that can hold back water.

You know, do something useful, kinda like what a government is supposed to do.

Score: 0

By Ainvar

posted Dec 15, 2005 - 10:42 PM

Heh I am waiting to see when the goverment will start taxing every breath you take and also tax your thoughts.

I find the fees and taxes on most things ridiculous. They blow the money on useless dribble that does not hardly ever help the public. The sad thing is we always get screwed over and we can never really do anything about it unless we spend our time and out money to just get an inch after they raped a mile out of us.

I really think the whole goverment needs to be revamped and brought up to the time we are in and not the early 1900s in which they want to stay. This is 2005 going on 2006 and not 105 going to 1906.

Score: 0

By expert01

posted Dec 15, 2005 - 9:08 PM

Oh come on, it's a couple cents. And you don't pay a vonage tax on your broadband bill, Vonage doesn't provide internet.

Although I seriously doubt it's going to the purpose they say it is.

Score: 0

By abel

edited Dec 16, 2005 - 8:41 AM

expert01, I'm fully aware of what Vonage provides, I'm an IT professional who has used them for over a year now.

The point of what I was saying was the nature of this federal communications tax, which other phone companies want applied to Vonage, is incongruous. Vonage is a service provided on top of another service, namely some form of broadband internet.

To clarify further, my remarks were that we already pay taxes on the infrastructure Vonage is utilizing, that being the DSL, cable modem, T1 line, whatever. This is not the same as paying for a standard telephone line, where you have actual copper line buried in the ground which only serves the purpose of giving you a dial tone. If Vonage were a line from a provider directly to my house, with no attendant services, I would agree that it should be taxed in order to provide that infrastructure everywhere else. However, the fact remains that we are already taxed for the infrastructure Vonage is using, every time we pay our broadband bill. Any broadband service has tax built into the monthly price.

Furthermore, what you call "a couple cents" is actually a few dollars when you start adding things up. When I had my old POTS line, they said it was $6.50 a month. After taxes and "service fees", the price was over $13.00. So, if it's all the same to you, I would prefer the government not tax something that it really has no logical grounds for taxing, other than standard telephone companies complaining over an inability to match the features and price points of VoIP providers.

Score: 0

By abel

posted Dec 15, 2005 - 7:42 PM

We already pay a tax for Vonage, it's called a bill for broadband internet. Since VoIP providers don't have any specific infrastructure that the government needs to support, I don't see why they should have to pay any additional taxes. If anything, the taxes should be part of a cable/dsl bill. Oh look, they already are!

Score: 0

By yizuman

posted Dec 15, 2005 - 4:25 PM

Anyone remember the Boston Tea Party story?

I say let's toss the FCC staff off the ship!

Score: 0

By Bugeyes

posted Dec 16, 2005 - 3:09 PM

Boston Tea Party was actually a protest against the LOWERING of taxes on goods from England being shipped to the American Colonies - creating an unfair price advantage over domestic products.

But I agree, flog the FCC.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
FCC = Congress?

buggy

Score: 0

By gawd21

posted Dec 15, 2005 - 3:36 PM

The FCC can go to hell! I pay more than enough on everything!

Score: 0

By PC_Tool

posted Dec 15, 2005 - 3:17 PM

I would accept this under one condition;

The companies getting money from this "fund" must be held accountable and open their books up to scrutiny by the general public to verify that the money is indeed going to "subsidize telecommunications services in high-cost regions of the country, and in schools and libraries."

Yeah...that'll happen.

Score: 0

By st0mp

edited Dec 15, 2005 - 2:47 PM

0h crap people are saving money on something. lets get them so they are not saving a dime and we get the dime they save. hmm would be nice to get my new BMW a custom paint job.

Score: 0

By Dwiebelhaus

posted Dec 15, 2005 - 2:46 PM

i day dream them DEAD.

Score: 0

By Banquo

posted Dec 15, 2005 - 2:22 PM

What if just open my window and yell across the street to my neighbor? Are they going to start taxing that too?

Score: 0

By jsc315

posted Dec 15, 2005 - 2:18 PM

Of course the FCC wants to do that. If its free or cheap then the FCC finds some way to screw the people over.

Score: 0

By Black-Wolf

posted Dec 15, 2005 - 2:15 PM

We don't need the crap like this.

I will just do PC-to-PC calling... forget about them!

Score: 0

By zridling

posted Dec 15, 2005 - 2:02 PM

Republicans — all they ever want is to tax you into poverty and blow the money. Why do conservatives hate America and American values? Keep your filthy hands off my VOIP!

Score: 0

By nogdolan

edited Dec 15, 2005 - 2:23 PM

What are you "Stuck on Stupid" or are you a "Useful Idiot"?

Score: 0

By iamtux

posted Dec 16, 2005 - 9:06 AM

last time i checked, conservatives were trying to preserve values, like "one nation under God" and "Merry Christmas" instead of just "Happy Holidays". its the liberal media that tries to cater to every single person who might have a problem with a set precedent. this country was founded on beliefs and they're being destroyed by the liberal media and liberals in general. i think they should all leave and form their own country, the UAWP, the United Always Whining People.

Score: 0

By xyzcb1

posted Dec 15, 2005 - 2:49 PM

I think you wrong on the Republicans. They more of tax you into poverty and give those money to the riches.

Score: 0

By sjc001

edited Dec 15, 2005 - 3:30 PM

They accuse the democrats of tax and spend, that's what a government is suppose to do BTW, but the republicans are what you call dine and run. They feast on you and when the bill finally comes they run away.

Score: 0

By Chip1035

posted Dec 16, 2005 - 11:29 AM

Last I checked, this was a technology forum, not a "Lets Rip Each Others Government Values" fourm. Save it for another forum who cares.
The issue here is the FCC wanting to tax on VoIP services. It was only a matter of time before they started taxing VoIP and it is matter of time before they regulate Sirus and XM radio. I agree with the term "Keep your taxes off my services". But reality is, Big Brother will get you one way or another. Oh and Happy Holidays.

Score: 0

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