TITLE

Taxing VOIP: Consider The Alternative

AUTHOR(S)
Passmore, David
PUB. DATE
October 2004
SOURCE
Business Communications Review;Oct2004, Vol. 34 Issue 10, p14
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article discusses various approaches to VOIP regulation and taxation that are more compatible with new technologies. Federal excise and many state telecom taxes represent a major source of government revenues. It could be argued that some of these taxes should be eliminated, since monies they raise don't all go toward telecom-related activities and services, but instead fund general government expenditures. For years, many politicians have viewed taxes on phone service as "the gift that keeps on giving." Universal service is a federal program that assists rural and poor customers who otherwise might not be able to afford service. All interexchange carriers and U.S.-based international service providers pay into a universal service fund that is then allocated back to telcos based on their customers' needs. VOIP service providers are not required to pay into the universal service fund - this is consistent with the current federal policy of not taxing Internet or information services.
ACCESSION #
14728214

 

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