Anyone who wants to know how Washington works should look to an article buried in today’s Communications Daily (sorry, it’s by subscription) on a House Small Business Committee hearing. The committee had brought together representatives from various communications industry segments to talk about the “innovation agenda, ” focusing on the growth of broadband.
The good news: “All witnesses opposed an Internet tax and supported extending the moratorium” on federal taxation. Easy enough. But wait a second: many of the same witnesses also supported extending universal service subsidies to broadband, presumably applying universal service fund fees to broadband access bills (right now they only are imposed on telephone bills). Isn’t that a tax? No, said the Shirley Broomfield, representing rural telephone firms, who would benefit from extended subsidies. It depends on how it’s implemented, said Earl Comstock from the competitive carriers, whose customers already pay the “fee.” Only one witness — Richard Cimerman from the cable industry, whose customers would have to pay the tax/fee — said yes.
So much for the united front against taxation.
Outside of Washington, it’s pretty clear that something — such as the universal service fee — that you have to pay to the government to support subsidies to others — is a tax. It’s your money, the government asks for it, you have to hand it over.
But in DC, words mean whatever people want them to mean. You can be against taxation, but want others to be taxed, er, well maybe “fee’d” to pay for subsidies.
Perhaps after the hearing, cake was eaten, and not eaten as well.
The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.
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