12-13-2018, 10:09 PM
FCC panel wants to tax Internet-using businesses and give the money to ISPs
At AT&T's urging, committee proposes tax on websites to pay for rural broadband.
A Federal Communications Commission advisory committee has proposed a new tax on Netflix, Google, Facebook, and many other businesses that require Internet access to operate.
If adopted by states, the recommended tax would apply to subscription-based retail services that require Internet access, such as Netflix, and to advertising-supported services that use the Internet, such as Google and Facebook. The tax would also apply to any small- or medium-sized business that charges subscription fees for online services or uses online advertising. The tax would also apply to any provider of broadband access, such as cable or wireless operators.
The collected money would go into state rural broadband deployment funds that would help bring faster Internet access to sparsely populated areas. Similar universal service fees are already assessed on landline phone service and mobile phone service nationwide. Those phone fees contribute to federal programs such as the FCC's Connect America Fund, which pays AT&T and other carriers to deploy broadband in rural areas.
AT&T stands to be one of the biggest beneficiaries if states assess the new taxes. AT&T already gets $428 million a year from the FCC's Connect America Fund in exchange for providing 10Mbps Internet service in rural areas.
An AT&T executive who is on the FCC advisory committee argued that the recommended tax should apply even more broadly, to any business that benefits financially from broadband access in any way.
Article 11 of the BDAC's model state code would create a Rural Broadband Deployment Assistance Fund, paid for by contributions from broadband providers and "Broadband Dependent Services."
The newly revised definition isn't quite grammatically correct and seems to apply to any subscription-based retail service, even those that don't use the Internet. But it was clear from the meeting that the committee intended to apply the tax only to subscription-based businesses that require Internet connections and to advertising-supported services that use the Internet.
At AT&T's urging, committee proposes tax on websites to pay for rural broadband.
A Federal Communications Commission advisory committee has proposed a new tax on Netflix, Google, Facebook, and many other businesses that require Internet access to operate.
If adopted by states, the recommended tax would apply to subscription-based retail services that require Internet access, such as Netflix, and to advertising-supported services that use the Internet, such as Google and Facebook. The tax would also apply to any small- or medium-sized business that charges subscription fees for online services or uses online advertising. The tax would also apply to any provider of broadband access, such as cable or wireless operators.
The collected money would go into state rural broadband deployment funds that would help bring faster Internet access to sparsely populated areas. Similar universal service fees are already assessed on landline phone service and mobile phone service nationwide. Those phone fees contribute to federal programs such as the FCC's Connect America Fund, which pays AT&T and other carriers to deploy broadband in rural areas.
AT&T stands to be one of the biggest beneficiaries if states assess the new taxes. AT&T already gets $428 million a year from the FCC's Connect America Fund in exchange for providing 10Mbps Internet service in rural areas.
An AT&T executive who is on the FCC advisory committee argued that the recommended tax should apply even more broadly, to any business that benefits financially from broadband access in any way.
Article 11 of the BDAC's model state code would create a Rural Broadband Deployment Assistance Fund, paid for by contributions from broadband providers and "Broadband Dependent Services."
The newly revised definition isn't quite grammatically correct and seems to apply to any subscription-based retail service, even those that don't use the Internet. But it was clear from the meeting that the committee intended to apply the tax only to subscription-based businesses that require Internet connections and to advertising-supported services that use the Internet.