Understanding the Universal Service Fund
And the Constant Efforts to Try and Reform it
by morbo Friday 03-Jun-2011 tags: legal · fcc · coverage · business · bandwidth · Op/Ed · legislation · consumers
Pull up your cell phone statement online, or take out your paper landline phone bill. Hidden among the expected federal, state, and local taxes and numerous mystery fees is a line-item titled either the Federal Universal Service Fee or Universal Connectivity Fee. This article will discuss the history of this fee, how this money is spent, the recent attempts to reform the fee, and the implications reform will have on the telecommunications industry.
To understand the origins of this tax, you have to go back to the Communications Act of 1934. One goal of this legislation was to provide universal phone service at a reasonable price to all people of the United States. In the 1930s, only 40% of U.S. households had telephones. To accomplish the goal of universal service, phone companies charged higher long distance rates than needed to spread the financial burden for providing universal service.
It was not until the passing of the Telecommunications Act of 1996 that the funding structure for universal service changed. Phone companies could no longer fund universal service through higher long distance rates. Instead, the act mandated that universal service be paid for by telephone companies in the form of a tax. These collected taxes form the Universal Service Fund (USF) which is overseen by the Universal Service Administrative Company (USAC).
The Telecommunications Act of 1996 does not require telephone companies to bill customers for this tax but permits them to do so. Companies have the option of including this tax in the overall service price, or they can have a lower service price and list the USF charge separately. The majority of companies strategically choose the latter option.
If you have a cell phone, landline, or VoIP line in the United States you pay a percentage of your total bill into the USF every month. This percentage is known as the quarterly USF Contribution Factor. The monthly fee is collected from you by your carrier, forwarded to the USAC, and then the USAC distributes the funds to its four programs:
http://www.dslreports.com/shownews/U...ce-Fund-114526

They can keep taxing the shit out of rich, middle, and lower class, but the more tax money they have, the more they are going to spend. Instead of slightly raising taxes and cutting spending, to cut down the debt ceiling they would rather just keep sucking people dry.
Sounds like what this country has needed for oh, roughly 32 years now.....Those who enjoy the most of what this country has to offer be held to at least the same responsibility as the serfs? Perhaps even a little MORE.....? That's crazy talk, nigga! Even though the taxes on the Über-Wealthy are lower than any time since the early 60's, I think we need to go all in, and absolve the people "earning" above $10,000,000/$25,000,000 absolute freedom from taxes... They will feel so guilty, and so grateful, that they will finally bring jobs back to the US and pay decent, liveable wages, and tighten their belts and have only 6 or 7 vacation mansions, instead of 12, because by gosh, they're gonna trickle down that wealth just because they're so swell......
The recession ended 2 years ago, yo.
http://www.nytimes.com/2011/10/10/us...t-falling.html
tax rates can go up no problem on the higher earners, but you folks do know that the more you make the higher your tax rate is already. we have a tax code that is progressive for income taxes, its not regressive, so the wealthier already pay alot more than you & at a higher %. those that deal with this shit on a daily basis are wondering what that shit is about "their fair share" . for example, right now before the tax rate cuts expire, 72.5k couple pays 15%... a 223k couple pays 28%, almost double. & the top rate being 35% for 398k couple & up...i kind of expect the strange childish uniformed hate from most of the political posters here against higher earners, but heinousmark, whatsmata fo you? you guys really buy into the class warfare & have to have a bogeyman. i suggest you guys grow up.
I hate being bipolar, its awesome.
Says the guy who never leaves his tiny corner of the country.
Got to love the dem party, has the highest rate of people on entitlements and they scream for the the people who pay taxes to pay more so the people on the government teet can keep having babies that will be on the the government teet because hey, future dems.
Tell you what bro, 11/08/2012, "I told you so".
You'll see.
Bookmarks