The Fifth Circuit Court decided this week that the FCC is not permitted to use funds from the Universal Service Fund to support its initiatives to assist low-income households in accessing affordable internet.
Whether the Universal Service Fund permits the FCC to spend the funds for internet is the question at hand.
Numerous people contend that the money was intended to be used for phone service when it was established. It is now used for the internet thanks to a move made by the FCC. Many contend that since the FCC is now using this tax for internet access rather than phone service, consumers shouldn’t be required to pay it on their phone bills.
In the Telecommunications Act of 1996, Congress gave the Federal Communications Commission the authority to levy taxes, according to the court’s decision this week. The FCC then gave a private company subordination over the taxing authority. The amount that American people would be required to pay for the “universal service” tax that shows up on cell phone bills across the country was decided by that private corporation, which in turn depended on for-profit telecommunications firms. We conclude that this improperly levied tax contravenes Article I, Section 1 of the Constitution.
This decision probably indicates that the Supreme Court will hear this matter and render a decision. Until a final decision is made, which may take some time, it is probable that neither your phone bill nor the FCC discounted plans will change.
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