Posted on 12/22/2004 5:41:59 AM PST by OESY
Much of the Washington press corps was preoccupied last week with the White House economic proposals, which are about allowing people to keep more of their money. Meanwhile, the National Governors Association was across town hosting a separate gathering that focused on just the opposite.
The NGA -- along with its buddies at the National Conference of State Legislatures, the National League of Counties, the National League of Cities and the U.S. Conference of Mayors -- desperately wants to tax Internet use. And they're hoping that Internet phone calls... will pave the way.
You're forgiven if you thought this was settled last month when President Bush signed the Internet Tax Non-Discrimination Act. But that law merely extends through October 2007 the current moratorium on taxing things like Internet access; or taxes by multiple states of a product or service purchased online; or taxes that treat Internet purchases differently from other types of sales.
State politicians have their sights on bigger game. They want the Internet classified as one giant telephone for tax purposes. That's because telecom levies are some of the highest in the country, averaging 17.9%, according to the Council on State Taxation, and producing a cool $20 billion or so every year for state and local coffers.
In a good call last month, the Federal Communications Commission excluded VOIP -- the new technology that allows consumers to place calls over the Web -- from state regulation. Unfortunately, the agency was silent on the issue of taxes and fees, and states have taken that silence as a cue to go on the offensive....
Since the Internet is making everyone more productive, it deserves some credit for the economic growth that has led to greater tax collections. Taxes are unlikely to help this trend, let alone encourage faster broadband deployment....
(Excerpt) Read more at online.wsj.com ...
I got a feeling this stuff is coming soon to an internet connection near you. Be on the look out for 'incremental-ism'.
Hmmmmmmmmmmmmmmm.
This forces me to look at those brainless zombies with stuff stuck in their ear while driving or walking in a whole different light...
I'd say this nation is way, way overdue in having itself another tea party.
Let's hope the opposite happens ... that a discussion of the telephone tax leads to its long overdue retirement. After all, we have the case of someone complaining that of two similar things, only one is taxed. Well there is an alternative to being fair by taxing them both: tax neither.
They do not understand--or they do not care--that government officials want our money to keep themselves in power.
They point to Europe,
"Where "everybody pays a much higher percentage of their wealth in taxes and blah blah blah blah",EUROPE IS DECADENT!"And compared to Europe, the American people are vastly under-taxed and blah blah blah blah"
"And they have more social services and blah blah blah blah."
MARXISM ALWAYS FAILS! IT REQUIRES A TOTALITARIAN GOVERNMENT!
I think you're right, Mew. What we had on November 2, 2004, was a sample hors d'oeuvre.
I like the way you think.
The line quality of Vonage is outstanding. No problems whatsoever. In account includes online services configuration (e.g. call forwarding, voicemail); international rates about 40 percent less than AT&T; and virtually realtime billing updates online. It's great.
The $49.95 Vonage VOiP router comes with a $50 rebate (from Staples), so they're basically paying you 5 cents to get started. Unlimited U.S. calling plan is $25.00, including Alaska and Hawaii.
As far as the VOiP tax goes:
Looking at my Verizon bill, it is indeed true that about 15 to 20 percent is various taxes and surcharges (e.g., "Public Rights Of Way Use Fee", "Federal Subscriber Line Charge"). And my AT&T LD bill (which is mainly international charges) typically runs about 10 to 15 percent various taxes.
No wonder these guys are salivating over taxing VOiP.
Right now there are only about 1 million VOiP subscribers. But the horse is out of the barn, and when people discover the savings and service improvements vice Verizon, AT&T, et al, there will be a deluge of bailouts from POTS to VOiP companies like Vonage. The handwriting is on the wall.
These schmucks at NGA and elsewhere aren't stupid. It's pretty clear they want to get their mitts on VOiP taxation *before* that deluge hits, and before there's a large anti-tax constituency.
Hopefully they won't strangle companies like Vonage before VOiP really gets off the ground.
One person tea party here.
I canceled all long distance on my phone. Any LD calls are made on an ATT calling card at 5 cents/min.
My phone has only a dial tone for i-net access. ALL other services are cancelled. Still, my bill has 14% added fees and taxes, but it is based on a lower amount.
I'm thinking of doing this today, but a little confused.
I'm inferring from your post that you kept dialtone to support a DSL line. I need to do the same here.
But checking various DSL and VOiP boards, it appears that Verizon won't give you "dialtone only," and that you have to keep some minimal level of service.
Have you heard this?
I considered going the phone card route but have a lot of international calls, and for international only the worst fly-by-night operations beat Vonage for LD rates.
these guys lay awake at night trying to think up new things they can tax...Monty Python had it nailed back in the 60's...they won't rest until they find a way to tax
"all foreigners living abroad"
They'll have to go to VOiP companies like Vonage and say "hand over your subscriber records". That's the only way they'll get a tax.
Obviously this'll have to be mandated at the federal level, and impose huge filing requirements on startup VOiP companies.
AT&T and Verizon are also scrambling to get their VOiP services in place, but their services suck and prices are higher.
I have had Vonage since July. Absolutely no problems. Got rid of Verizon and AT&T long distance. I pay $29.00 flat for unlimited calls to US and Canada and very reasonable rates (less that $.10/minute) to most of Europe.
Are you on DSL or cable?
If DSL, how do you handle your DSL connection? Did you get dialtone only phone service for that line?
I think the Nat'l Telephone Tax is needed, but just on a temporary basis. How else will we finance the Spanish-American War?
I suspect many of us will live to see the failure of socialism in Europe. Massive government spending for largess coupled with a falling birth rate is an end of the road scenario.
I forgot in my e-mail, my neighbor tried to get rid of his phone (dialtone) but keep the DSL, and U.S. West told him he had to have their phone to continue to have the DSL service. I think it is a scam.
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