FCC Likely To Tax VoIP

Posts: 101 · Vonage Forum Senior Joined: Jun 05, 2005 Posts: 101

It's No Urban Legend, FCC Likely To Tax VoIP
from the the-republican-led-FCC dept

Given the telcos' newfound love of laissez-faire, who's taking bets on whether they'll stand up against an FCC proposal to start levying taxes on VoIP providers? This has been coming down the line for some time now, though it looks set to happen with the appointment of a third Republican to the FCC. Now before you start wondering whether you've fallen into an alternate universe where Republicans favor higher taxes, take note that he's a former telco lawyer (breathe, order restored). The arguments against VoIP's classification as a telecom service, and thus compelled to pay Univeral Service Fees, barely need restatement, as it's arbitrary to view voice data as different from emails or any other online services. This will only get trickier as voice gets closer to being completely free, like when two people talk over AIM or Skype. Will they move to tax those services as Universal Service Fees continue to dry up? Considering that the government just lifted the 108-year old phone tax to pay for the Spanish-American War, it's obvious the government won't go down easily in its quest for cash.

Posts: 1123 · Vonage Forum **MVM** Joined: May 26, 2005 Posts: 1123

This belongs in the Cafeteria.

Posts: 32 · Vonage Forum Junior Joined: May 08, 2006 Posts: 32

good news;
Any regulations crafted for VOIP services will be federal, making nationwide deployment of services easier and less costly. FCC had ruled that Broadband phone company's service was exempt from state and local regulation and tariffs. Replubilcan are against taxes in general and are pro businesses.

bad news;
VOIP, Cellphone Bills Could Rise for Subsidy

Posts: 80 · Vonage Forum Senior Joined: May 24, 2006 Posts: 80

I might not become too popular for this view, but I really do not see why VOIP users should be able to avoid taxes that traditional long distance users have to pay.

With more and more people dropping their traditional phone services in favor of VOIP the base of consumers paying under the old system is reduced, and I think it is only natural that this tax is extended to VOIP users as well now that the VOIP technology seem to be well established in the marketplace.