said by fredlydeadly :

Where do you think that money comes from? It isn't like the cable/telcos reduce their profit margins - they just boost what you pay to pass the additional cost through.

said by SRFireside :

5% seems like a paltry sum, especially if a local community takes in much more from the local franchise fees. Plus what happens to local programming? State and federal franchises give little incentive for providers to cater to the actual local community.

said by TKJunkMail :

Actually the national law in Congress sets aside 5% of franchise tax to go to the local community. The money doesn't go back to Washington,DC. Then the local community can do with it as they see fit.

said by N3OGH :

You make a valid point, when it comes to greedy local politicians and franchise agreements, but...

I would sure as hell rather see my franchise tax go to my local municipality, where I can show up to the township meetings (and I do) and gripe about how the people who are spending the money (the township supervisors) are spending it.

With a national franchise, all that money goes to DC. It's just another drop in the bucket for them. More cash to study the mating habits of the duck billed cockroach, or to build a bridge to nowhere....