Tax Amount On Cell Phone To Subsidize The Wireless Facility For Poor

Tax Amount On Cell Phone To Subsidize The Wireless Facility For Poor

0 2004

Strategy has been made to collect taxes from the people who can afford it and then provide the facility of broadband and wireless phones to those who are unable to pay for it. An annual $8.5 billion tax collection from the wireless services users is being used to spend on the schools in rural areas so that they can also get the facility of the wireless. Another plan is to subsidize the wireless service which will allow the poor people to utilize the services who are not able to pay their cell phone bills.

USF (Universal Service Fund) have a program which is known as Lifeline and according to this program, people who have low incomes and gets food stamps and Medicaid are given a subsidy of $9.25 for a month.

In the past, Lifeline had to face criticism as well when a scandal came in front of everyone and the scandal was related to the addition of those people in the program who actually did not deserve to be its part and were given the chance of getting food stamps and Medicaid. The program was started under the President Reagan and the expansion of the program was made by President Bush by adding the cell phones to the program and recently it has been changed into “Obama Phone” program.

According to FFC, if the program is extended, it will not be politically viable. Therefore expansion in the program should be done in a way that no more funds are required i-e the program should be expanded with the help of the funds which they already have.

USF have provided many people in America access to the broadband internet and according to FCC, almost 94% have access to the broadband but still there are100 million people in America who have no internet connection. Out of those who have access to the broadband connections, 70 percent have the broadband and if the percentages of the poor, less educated and rich with better education who have internet connections with them, it is more in case of rich people while there are less poor people who have these broadband connections.

Persons who earn $30,000 or less per year are only 54% who connect to the internet by using broadband connections while the number of people earning more than $75,000 per year are 88% of the total population who also use broadband connections.

Use of cell phones has increased during few past years and despite of that, still there are 33% poor people who do not have cell phones and internet connection. On the other hand, if rich people are seen, there percentage is only 5% who do not use cell phones and internet broadband connection.

If the tax amount is used to provide facilities of broadband to the people who lack it and subsidize it for them, the average of the people who are connected through these broadband connections will be increased very soon.