Americans across the nation are increasingly accessing broadband services using a variety of tools and connecting not only through wireline services, but also with their wireless devices. As demand grows for increased connectivity, so does the need to expand the infrastructure these devices rely upon. To meet this demand, wireless carriers often find it necessary […]
Time Wasting Away With Internet Tax Ban Set to Expire
On December 16, 2014, the Internet Tax Freedom Act was temporarily extended in the Consolidated and Further Continuing Appropriations Act, 2015 (H.R. 83), keeping the ban on Internet access taxes in place until September 30, 2015. Unfortunately, time is once again running out and only the House of Representatives has taken any action on the ban, this time making it permanent.
FITARA Plans Moving Forward
Federal agencies were required to submit their implementation plans for the Federal Information Technology Acquisition Reform Act (FITARA) by August 15, 2015. The plans were developed and submitted to the Office of Management and Budget (OMB), and indications from Federal Chief Information Officer Tony Scott, is that many agencies are embracing the changes to their […]
Clarity Needed in Taxation of Digital Goods
With technology changing the way consumers listen and view music and videos, state and local governments are now looking toward taxation of digital goods and services to increase their tax revenues. Currently, 17 states require by statute that taxes be paid on digital goods and services, and another eight states plus the District of Columbia […]
The Rural Broadband Boondoggle
In the 2009 stimulus bill, Congress allocated $2.5 billion to the Rural Utilities Service (RUS) to fund its Broadband Initiatives Program (BIP), all of which was supposed to be spent by the end of June 2015. This was a massive influx of money for a small agency whose previous annual average budget for broadband programs was approximately $290 million in direct loans and grants.
The IP Transition Is Coming
An innovative and ever changing communications landscape benefits everyone. This is one of the reasons the IP transition is an important component to the future of communications. While the evolution of the transition from copper to fiber may not necessarily be on everyone’s radar screen, how this transition is managed will have ramifications for years […]
Big Government Threatens Internet Independence
Americans will celebrate their freedom from tyranny on July 4. Unfortunately, these freedoms are rapidly eroding due to an increasing amount of government regulation and intervention into everyone’s daily lives.
The Unfair “Fairness” Act
It is disingenuous to call something fair and equitable when it is clearly not. This is the case with both S. 698, the Marketplace Fairness Act of 2015 (MFA), and the Remote Transaction Parity Act (RTPA), introduced on June 15, 2015 by Rep. Jason Chaffetz (R-Utah). Both bills purport to bring “equity” between the taxation […]
Taxing the Digital Age
Imagine someone sitting at the airport terminal in Seattle, Washington, waiting for a flight home to Ohio. Boredom has set in, as she waits for her flight to board, and she wants something to do. So she scans through the app store on her mobile device, finds a game that happens to be located on a server in Utah and purchases it. When she is back in Ohio and opens up her mobile billing statement, she could find a sales tax remittance for not just her home state of Ohio, but also from Utah and Washington. In fact, if the company that developed the app was based in yet another state that taxes digital goods, she could potentially be subject to up to four separate taxes on a single purchase.
Tossing a Broken Lifeline to Subsidize Broadband
In 2014, approximately $8.5 billion was collected in Universal Service Fund (USF) fees from consumers as a tax on their communications services. The four main USF programs are the Low-Income support services, which includes the Lifeline and Link-Up programs; the High-Cost program; the E-Rate Library and Schools program; and the Rural Health program. While there are many questions and concerns about all of these programs, the Lifeline program, which was established in 1985 to provide subsidized telephone services to low-income households, has perhaps the most sordid history of waste, fraud and abuse.