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Government Wants New Cellphone Tax to Fund School Broadband

The government is continuing to ponder a small tax on cellphone users in order to expand the government's USF and E-Rate programs so that they can shore up broadband shortcomings. While it was overshadowed by the blossoming NSA scandal at the time, back in June the Obama administration unveiled their "ConnectED" broadband initiative, which promised to connect 99 percent of America’s students to the Internet within 5 years. The speeds promised are 100 Mbps initially, and 1 Gbps by 2018.

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Uncle Sam estimates the improvements would cost between $4 and $6 billion, to be paid for with a tax placed on consumer cellphone bills. The government is currently estimating the cost per cell phone user would be around $12 over three years. That's a fairly insubstantial sum, though it's probably being lowballed to get the idea through the political door.

"...With a relatively modest investment, we could connect 99 percent of schools all across the country to the Internet, and that would expand educational opportunities for students in a really important way," White House spokesman Josh Earnest said in promoting the program this week during a White House press briefing.

The problem is the government has historically not shown itself to be competent enough to manage such programs effectively.

First, thanks to endless deregulation and corporate cash contributions, the government has helped create a stagnant and largely uncompetitive United States broadband market, where carriers have no incentive to seriously upgrade services, prices remain high, and regulators stare dumbly and complacently at their shoes. Companies have fought like hell to maintain this status quo, and just as hard to prevent under-served towns and cities from wiring themselves when private industry refuses to.

Second, the government has long done a miserable job when it comes to tracking how corporate broadband subsidies are spent.

The E-Rate system, which you pay into via Universal Service Fund (USF) fees, is designed to deliver broadband and technology services to the nation's schools and libraries. Instead, like the larger USF, it has historically acted as a corporate slush fund, where money paid in frequently isn't tracked by the government, and spending accountability is minimal to non-existent. This lack of proper oversight has unsurprisingly resulted in more than a little fraud by both carriers and schools over the years.

"...With a relatively modest investment, we could connect 99 percent of schools all across the country to the Internet, and that would expand educational opportunities for students in a really important way."
-The White House
At various times, between 26% and 40% of USF funds have been poured into E-Rate, and the program has doled out more than $27 billion since its inception in 1998. The program has great potential and occasionally great successes, yet it is repeatedly marred by the fact the FCC historically has not done a good job tracking spending.

For years now, the General Accounting Office (GAO) has issued an endless flood of reports on how the FCC should actually pay attention, and for just as many years the FCC has insisted they'd get right on that. While the fact that many areas have received help shouldn't be overlooked, the program's oversight failures are clear.

A report from 2009 found that 60% of U.S. libraries lacked the bandwidth to support visitors. That's fairly staggering given the billions thrown at this program, not including the money spent on state and local initiatives as well as private investment.

In short, the government wants to take up to $6 billion more dollars to accomplish goals that really should have been accomplished years ago. Nobody seems to want to correctly reform E-Rate contributions to ensure money is being spent properly before expanding the program, and there's no reason to believe that's going to magically happen with this new initiative. Broadband is historically something both parties pay lip service to, but understand virtually nothing about. Lobbyists dictate the discourse, and the result is obvious.

Were Obama serious about improving school broadband, a good first step would have been preventing incumbent, anti-competitive duopolists from writing laws intended to keep states in the broadband dark ages. Similarly, hiring an FCC boss with the independence, insight and courage to tackle a lack of competition, instead of just another lobbyist, would have done more for schools than fifty vague "ConnectED" initiatives.
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Metatron2008
You're it
Premium Member
join:2008-09-02
united state

Metatron2008

Premium Member

Oh great, another slush fund!

For some politician.

skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan

Premium Member

Re: Oh great, another slush fund!

...and telecom

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx to Metatron2008

Member

to Metatron2008
said by Metatron2008:

For some politician.

Absolutely spot on. Not only will it be a slush fund for politicians and telecom's, we can be certain it will rise as they find even more "needy" groups to hook up. Funny thing is, I thought this was what the USF was all about. I guess it is being wasted on too much other stuff such that we need yet another tax to makeup for the waste.

New York State has two 911 taxes because the first tax was raided long ago for just about everything but 911. The second 911 tax was needed to make up for the lost funds in the first fund.
pandora
Premium Member
join:2001-06-01
Outland

pandora

Premium Member

Re: Oh great, another slush fund!

I thought Congress determined taxes. If a President can tax on whim, we are all going to be in a world of hurt.

DataRiker
Premium Member
join:2002-05-19
00000

DataRiker to Metatron2008

Premium Member

to Metatron2008
Why are we focusing on broadband when 12th grade graduates can't do long division?

skeechan
Ai Otsukaholic
Premium Member
join:2012-01-26
AA169|170

skeechan

Premium Member

Re: Oh great, another slush fund!

but but but, it's for the cheeeeeeeeeldrin.
mob (banned)
On the next level..
join:2000-10-07
San Jose, CA

mob (banned)

Member

Re: Oh great, another slush fund!

said by skeechan:

but but but, it's for the cheeeeeeeeeldrin.

It's "chirrin"

jseymour
join:2009-12-11
Waterford, MI

jseymour to DataRiker

Member

to DataRiker
said by DataRiker:

Why are we focusing on broadband when 12th grade graduates can't do long division?

Or read. Or write. Or have the faintest idea how our government works. Or any of the other basic, essential things children used to be required to learn in school.

Precisely why, regardless of the taxing mechanism, be it property, sales/use, whatever: I'm am strongly opposed to any new or additional funding for the public education system. It's broken and, IMO, cannot be fixed.

Jim
devolved
join:2012-07-11
Rapid City, SD

devolved to DataRiker

Member

to DataRiker
Or find Canada on a map.

whiteshp
join:2002-03-05
Xenia, OH

whiteshp to DataRiker

Member

to DataRiker
Math and reading are over rated! Because it makes them into informed Good Americans! They are absolutely perfect. The new voter completely dependent on TV for what to think and do. Now if only I could afford some extra TV advertising spending to dictate media policy the majority would hate you and love me.

/end sarcasm
prisaz
join:2008-08-11
Germantown, MD

prisaz

Member

Re: Oh great, another slush fund!

said by whiteshp:

Math and reading are over rated! Because it makes them into informed Good Americans! They are absolutely perfect. The new voter completely dependent on TV for what to think and do. Now if only I could afford some extra TV advertising spending to dictate media policy the majority would hate you and love me.

/end sarcasm

1984 is now and has been, the thought police. I know many school districts that have, and will be filling the kids heads full of biased crap, and false truths. History is not politically correct! You can't read that book, even if it is what was happening at the time. What is Politically Correct? Only what the powers to be want for controlling the public. Don't say anything about the government, you can be labeled an enemy combatant or security risk, like all the returning troops that fought for what they thought was their country, and were considered a possible HLS security risk in that nice report. Or is that Father Land Security or the new US Nazi party? Who will be put in those CDC camps built for the Department of HLS? All the public that disagree with the latest government agenda, and have been exposed to the latest bio weapon turned on the people that have not had the vaccine? Get your foil hats people!

BIGMIKE
Q
Premium Member
join:2002-06-07
Gainesville, FL

1 recommendation

BIGMIKE to Metatron2008

Premium Member

to Metatron2008

Personal/Consumer Taxes & Fees
Federal income tax
State income tax
Local income tax
Employee social security tax (your employer pays the other half)
Employee Medicare tax (your employer pays the other half)
Property taxes
Road toll charges
State sales tax
Driver's license renewal fee
TV Cable/Satellite fees & taxes
Federal telephone surtax, excise tax, and universal surcharge
State telephone excise tax and surcharge
Telephone minimum usage and recurring/nonrecurring charges tax
Gas/electric bill fees & taxes
Water/sewer fees & taxes
Cigarette tax
Alcohol tax
Federal gasoline tax
State gasoline tax
Local gasoline tax
Federal inheritance tax
State inheritance tax
Gift tax
Bridge toll charges
Marriage license
Hunting license
Fishing license
Bike license fee
Dog permit/license
State park permit
Watercraft registration & licensing fees
Sports stadium tax
Bike/nature trail permit
Court case filing fee
Retirement account early withdrawal penalty
Individual health insurance mandate tax
Hotel stay tax
Plastic surgery surcharge
Soda/fatty-food tax
Air transportation tax
Electronic transmission of tax return fees
Passport application/renewal fee
Luxury & gas-guzzler car taxes
New car surcharge
License plate and car ownership transfer taxes
Yacht and luxury boat taxes
Jewelry taxes & surcharges
State/local school tax
Recreational vehicle tax
Special assessments for road repairs or construction
Gun ownership permit
Kiddie tax (IRS form 8615)
Fuel gross receipts tax
Waste Management tax
Oil and gas assessment tax
Use taxes (on out-of-state purchase)
IRA rollover tax/withdrawal penalties
Tax on non-qualified health saving account distributions
Individual and small business surtax (page 336 of Obamacare)
Estimated income tax underpayment penalty
Alternative Minimum Tax on income
Business Taxes & Fees
Federal corporate income tax
State corporate income tax
Tax registration fee for new businesses
Employer social security tax
Employer Medicare tax
Federal unemployment tax
State unemployment tax
Business registration renewal tax
Worker's compensation tax
Tax on imported/exported goods
Oil storage/inspection fees
Employer health insurance mandate tax
Excise Tax on Charitable Hospitals (page 2001/Sec. 9007 of Obamacare)
Tax on Innovator Drug Companies (Page 2010/Sec. 9008 of Obamacare)
Tax on Medical Device Manufacturers (Page 2020/Sec. 9009 of Obamacare)
Tax on Health Insurers (Page 2026/Sec. 9010 of Obamacare)
Excise Tax on Comprehensive Health Insurance Plans, i.e. "Cadillac" plans
Tax on indoor tanning services
Utility users tax
Internet transaction fee (passed in California; being considered in other states and at federal level)
Professional license fee (accountants, lawyers, barbers, dentists, plumbers, etc.)
Franchise business tax
Tourism and concession license fee
Wiring inspection fees
Household employment tax
Biodiesel fuel tax
FDIC tax (insurance premium on bank deposits)
Electronic waste recycling fee
Hazardous material disposal fee
Food & beverage license fee
Estimated income tax underpayment penalty
Building/construction permit
Zoning permit
Fire inspection fee
Well permit tax
Sales and Use tax seller's permit
Commercial driver's license fee
Bank ATM transaction tax
Occupation taxes and fees (annual charges required for a host of professions)

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

prepaid, no fees/taxes/etc

it will be a long time before I go back to post paid.
TBBroadband
join:2012-10-26
Fremont, OH

TBBroadband

Member

Re: prepaid, no fees/taxes/etc

prepaid does have taxes depending on the state you live in. In Ohio its regular sales tax but nothing else.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: prepaid, no fees/taxes/etc

Might want to check that. You can get out of paying sales tax for prepaid on most of the larger carriers. just don't buy it in ohio
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: prepaid, no fees/taxes/etc

You're still supposed to pay taxes on goods purchased in jurisdictions outside of your own

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: prepaid, no fees/taxes/etc

If you physically go there, yes, that is true. But that is not true for digital goods.

with prepaid, you don't pay for the service you pay for a code to activate the service.
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: prepaid, no fees/taxes/etc

It certainly is true for all jurisdictions that I've looked at.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: prepaid, no fees/taxes/etc

I don't remember the last time I've paid sales tax online.

Corehhi
join:2002-01-28
Bluffton, SC

1 recommendation

Corehhi

Member

Re: prepaid, no fees/taxes/etc

said by ArrayList:

I don't remember the last time I've paid sales tax online.

You're supposed too. Little box on your income return so you can pay the proper tax. Does anyone do that??? No doubt it.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: prepaid, no fees/taxes/etc

I'm not responsible for collecting sales tax, I'm not a retailer.
NOVA_UAV_Guy
Premium Member
join:2012-12-14
Purcellville, VA

NOVA_UAV_Guy to openbox9

Premium Member

to openbox9
And that would matter because? Any time someone has an opportunity to get around paying a tax and actually takes advantage of it, I applaud them. No need to fuel the failure that is our government any more than necessary (and have your tax money wasted on the poor and lazy).
openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Re: prepaid, no fees/taxes/etc

That's a different discussion. The point is that most jurisdictions legally require consumers to pay their taxes, regardless of where and how goods are purchased. Many don't, which is why there's such an uprising about online retailers collecting sales taxes.

morbo
Complete Your Transaction
join:2002-01-22
00000

morbo

Member

Not another USF slush fund

Let's not repeat past mistakes of creating yet another USF slush fund for "the children" to have broadband. These programs have little accountability, they distort the market, it primarily benefits telco and cableco, and the tax will never go away.


dnoyeB
Ferrous Phallus
join:2000-10-09
Southfield, MI

dnoyeB

Member

No

Before the rest of you get carried away, let me be the first liberal to say, no new taxes. And damn sure not for something we are already being ostensibly taxed for.

I find it hard to believe the Obama administration would propose a new tax. That's just as dead as repealing Obamacare.

OSUGoose
join:2007-12-27
Columbus, OH
Apple AirPort Extreme (2013)

OSUGoose

Member

Re: No

Another liberal/moderate here.

OH HELL NO!

Why not instead, fix the damn E-Rate and USF, and ya know actually fund enough people necessary to actually oversee and enforce them properly.

Heck in Ohio we already have this for most of the colleges:

»oar.net/press/gov_kasich ··· _network

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

1 recommendation

FFH5 to dnoyeB

Premium Member

to dnoyeB
Not a liberal, but agree that another USF tax increase on cellphones is NOT needed. In fact the whole USF pgm is a totally messed up pgm that should be ended - NOW.
78204168 (banned)
join:2013-02-28

2 recommendations

78204168 (banned) to dnoyeB

Member

to dnoyeB
Just what the hell are the property taxes for if not for schools?!? They keep jacking mine up and I don't even have any kids..
intok (banned)
join:2012-03-15

intok (banned)

Member

Re: No

School funding has been slashed in so many parts of the country that large numbers of schools have been closed and class sizes bloated just so that they can even try to keep an education system going.

With right leaning politicians pushing to instead have private schools receive subsidies based on the performance of cherry picked students in increase the school's overall GPA numbers.
cpuoverck
join:2012-09-29

cpuoverck

Member

Re: No

if we learned anything over the past 50 years it is that more money does not equal better education. Many of the worst performing schools are also the most expensive per student. How many children are you prepared to sacrifice in schools that don't care? Parents should have a choice where they send their children and failing schools should close before they screw up more children.
intok (banned)
join:2012-03-15

intok (banned)

Member

Re: No

Are you referring to voucher schools and diploma mills? As those are the ones where the costs are high and the results are low.

If a school's funding is so bad that they are using 30 year old text books because there is no money in the budget for new ones those kids should at least be able to get to google to do their research.
NOVA_UAV_Guy
Premium Member
join:2012-12-14
Purcellville, VA

1 recommendation

NOVA_UAV_Guy to intok

Premium Member

to intok
I'm strongly in favor of school vouchers.

If funding gets taken away from failing public schools and goes to private institutions that outperform them, then the end result is still a better overall system - as those without money close and those with money grow and spread their success further.

Perhaps the institution of such a system nationwide would cause schools to rethink how they spend their money, how they evaluate their teachers, and how they structure their curriculum in the hopes of producing better results. At a minimum, it would go a long way toward eliminating the dead weight in our public school systems.
moonpuppy (banned)
join:2000-08-21
Glen Burnie, MD

2 recommendations

moonpuppy (banned) to dnoyeB

Member

to dnoyeB
More free stuff for those that suck off the government teat. These are the people that voted for our current President.

cableties
Premium Member
join:2005-01-27

cableties

Premium Member

Only if they refund my

property-school taxes that ALREADY PAY for the excessive school technology needs.
Like tracking kids macbooks, ipads for teachers, software, admin, and all the other school-related fiefdom needs....
Crookshanks
join:2008-02-04
Binghamton, NY

1 recommendation

Crookshanks

Member

Re: Only if they refund my

You forgot the multimillion dollar sports fields that are in vouge, bonus points for building them while laying off teachers and increasing class sizes....
intok (banned)
join:2012-03-15

intok (banned) to cableties

Member

to cableties
Yeah, I've never understood the whole "give them all laptops" thing for anything other then the ill fated OLPC that was supposed to be a dirt cheap, hand crank rechargeable device to host public domain K-12 textbooks.

The only tech I've seen that would actually be useful in most classrooms is a digital whiteboard, many things are easier to absorb when you can see proper video representation of it and it makes it so the teacher doesn't have to waste time drawing up the same things on the board 8 times a day because there is only so much space on the board and thus parts of it have to be erased and redrawn every class of the day.

Probitas
@teksavvy.com

Probitas

Anon

government ineptitude is bad enough...


...but when private companies see who foots the bill, the bottom line always gets at least one extra zero added.

DC DSL
There's a reason I'm Command.
Premium Member
join:2000-07-30
Washington, DC
Actiontec GT784WN

1 recommendation

DC DSL

Premium Member

How about NO!?

Make Verizon, AT&T, and countless other huge corporations PAY THEIR FRIGGIN TAXES and the gov won't have to keep coming up with more ways of taking money from consumers. I and my small business pay more in taxes than those megacorps. Either my business gets the same breaks and loopholes for tax-free living, or those clowns have to play by the same rules and pay up.

••••••••••
silbaco
Premium Member
join:2009-08-03
USA

silbaco

Premium Member

School Broadband

Most of the schools in my state can already get 100 Mbps through ICN. But something tells me my state, who already invested in a state network for purposes like this would still have to pay this tax for other states who did nothing. How wonderful.

I do have to wonder just how this money will be used. $4 to $6 billion to roll out 100Mbps to schools? How many schools truly can't get 100Mbps right now if they desired it? As I have said before, I don't even know of any schools other than a couple private schools that don't already have fiber. I'd be willing to bet the vast majority of those schools with fiber can get 100Mbps. Something tells me the few schools out there that don't have fiber or can't get 100Mbps won't cost $4 to $6 billion to get it.
intok (banned)
join:2012-03-15

intok (banned)

Member

Re: School Broadband

The vast majority. Most are still lucky to be getting a T1 line or a cable buisness line.

Network speeds are pathetic in most of the country, the friends I have in the local unis and tech schools often complain that the school's connection is as bad as dialup more often then not.

guppy_fish
Premium Member
join:2003-12-09
Palm Harbor, FL

1 recommendation

guppy_fish

Premium Member

List please of schools NOT on the internet ..

This isn't 1995, I don't know of any schools not on the internet, and if there are, the parents of the kids going to those schools can pay for it, just as my property taxes pay for my local schools!

•••••••••
ackman
join:2000-10-04
Atlanta, GA

ackman

Member

No way

As an politically independent voter, I feel this would be a terrible idea. School kids need textbooks and adequately paid and qualified teachers first, then maybe we could consider value-added extras like Internet access. But honestly, what would be the point for the Internet access? Is there a plan for what to do with it, in order to justify the expense, or is this just another window dressing buzz-word to help us feel good about "giving technology to schools"? Schools are buying ipads for the students and teachers, so they can tout how their school has all this technology, blah, blah... but once they get all the hardware, they have no plans, no teaching materials, nothing. So great, they get to say they have all this technology in the school, but how is it benefiting education?

••••
ackman

ackman

Member

Political ramifications

So we have a right wing majority in the US House of Reps, which is where this tax increase would need to get traction. This is the same House of Reps that has refused to pass a single White House budget since 2008, and has been running the US on continuing resolutions ever since. One would have to think the odds of floating a new tax at this time would be abysmal.

•••••
IanR
join:2001-03-22
Fort Mill, SC

IanR

Member

Yeah like annual car regstration...

... pays for road repairs...
Beans5
join:2005-07-16
united state

Beans5

Member

Re: Yeah like annual car regstration...

It does pay for road repairs... The little brick roads that goes to somebodys bank account.
cornelius785
join:2006-10-26
Worcester, MA

cornelius785 to IanR

Member

to IanR
that reminds me how connectitax's gas tax is being siphoned out into to be used on other BS. i'd be more open (from fully against to only an infinitesmal amount of support)to the cellphone tax if i was certain it'd be used only for school broadban, but because i'm not that naive, they can shove it you know where.

thxultra
@mooseintl.org

thxultra

Anon

More money for the government to waste

Didn't we throw tea in the harbor over taxes at one time. Getting out of control all the taxes charged on everything. What ever happened to the lottery money going to fund school broadband? Lets start cutting government spending instead to fund this project. Our pockets are already empty with all the taxes we pay we don't need another one.

EUS
Kill cancer
Premium Member
join:2002-09-10
canada

EUS

Premium Member

intelligent

choice, the public has shown they will pay almost anything for smartphone convenience.

BimmerE38FN
join:2002-09-15
Boise, ID

BimmerE38FN

Member

Carry Books, not Broadband!

I remember going to school where we had to carry books to school. I think we should go back to that. Broadband isn't needed in school, whats needed is good curriculum and good teachers and support for teaching kids.

atcotr
@rr.com

atcotr

Anon

Re: Carry Books, not Broadband!

Back in my day, we didn't have books. We had to memorize passages after collecting firewood and walking uphill both ways in the snow.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK to BimmerE38FN

Premium Member

to BimmerE38FN
Books! Every Student needs an Ipad2!!

StuartMW
Premium Member
join:2000-08-06

1 recommendation

StuartMW

Premium Member

It's always...

It's always

• for the children.

• to protect us from terrorists.

in this case the former.
whoyourdaddy
join:2013-02-20
Honey Brook, PA

whoyourdaddy

Member

have the

will every school desk have a computer that's up to date I bet not the schools can't even afford to open on time. do to budget flow like how they tried to make u pay for your child to ride a school bus everyday that's next ( if the GAS prices keep going up)

Hipsteryywwt
@verizon.net

Hipsteryywwt

Anon

As long as this is only...

for the big guys like AT&T and Verizon, and not the MVNO's I'm all for it!
whoyourdaddy
join:2013-02-20
Honey Brook, PA

whoyourdaddy

Member

why don't the goverment tax us

why don't the government tax the ones that get suspended from school something like that per day

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

1 edit

tshirt

Premium Member

It's not that schools don't need more money...

...but this is a big disconnect between the source (cellphones) of the revenue, and the use (school IT technology/broadband).

beyond general fund taxation, there should always some sort of "cause and effect" linkage between taxes collected and tax money spent particularly on "special purpose" taxes.

just because wireless currently has "deep pockets" doesn't mean they can be over taxed to pay for everything else.
This is similar to the idea (currently very popular) the "sin taxes" should cover more and more of the gap left by undertaxing the broader public to fill the general fund intended to cover more basic gov't services.
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