End of One Tax = The Start of Another
Posted in Telecommunications by jspirko on June 2nd, 2006 
Well just a two days ago I reported about the demise of the Federal Excise Tax on Long Distance and that they are considering removing the same tax on local phone service but by now we know Uncle Sam will get his money. What’s the new target? Of course it is voip services from companies like Packet8, Sunrocket and Fonvantage.
PCMag.com just reported that, “FCC Chairman Kevin Martin proposed recently that VOIP service providers such as Vonage, Skype and others begin paying 10.9 percent of 65 percent of their revenues into the US“. Good gosh but isn’t that a bunch of double talk, “10.9% of 65%”.
Can they not just say 7.085%?
Honestly why every time that the government sticks its’ hands into consumers pockets do they do two things?
One, try to make it sound like they are taxing the businesses not the consumers when anyone with an IQ above 45 knows any business simply must pass the expense on to the consumer to remain profitable.
Two, confuse the issue with double talk (i.e. 10.9% of 65%) rather then simply use plain language.
Sadly the answer to both points is because they work and most people fall for it. If you are a VoIP user and want to stay in the world of not paying more taxes then now would be the time to contact your Senators and Congressmen about this.
For full details on this read the article on PCMag.com called, “FCC Mulls Taxing VOIP Calls”.
~ Jack
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