Roger Shoffstall spent three years in prison for tax evasion. Still, each year the federal government pays his Alaska company, Summit Telephone, for internet service that’s slower than in most of the U.S.

One thing never changes, however: Each year, the federal government sends his company, Summit Telephone, more than $1 million.

The money comes from a special government subsidy program that Congress created to bring fast, affordable phone and internet service to hard-to-reach places. You help pay for it.

Pull up your latest phone bill and look for a line labeled “Universal Service Fund.” Some phone companies list it as a “Universal Connectivity Charge” or fold it into a “Regulatory Programs & Telco Recovery Fee.” It’s all the same thing: a surcharge added to the monthly bill of phone customers throughout the United States.

The federal government and phone companies don’t call it a tax — but it acts like one. Carriers must currently contribute 37 cents of every dollar of their interstate and international phone revenues to the fund.

  • pinball_wizard@lemmy.zip
    4·
    19 days ago

    Public goods help everyone - sometimes in subtle ways. We don’t need fewer taxes, we need billionaires to pay their fair share.

    • b000rg@midwest.socialEnglish
      4·
      19 days ago

      Agreed. This really sounds like a loophole needs to be closed. I think eliminating the “fee” would be throwing the baby out with the bathwater. Rural communities deserve to be connected; the issue is the 300 buildings connected in a town of 80 people.