At this point it is beyond ludicrous to have VoIP providers pay into the USF. VoIP is just an application. It makes much more sense to have broadband providers pay into the USF. I have mentioned this before and feel I must keep mentioning it until someone listens. Increasing taxation on VoIP calling will push people to use services like Skype more quickly. As everyone uses free VoIP packages there will be no revenue left to tax for the USF.

Moreover, if I pay for e-mail service why is that not taxed for the USF? What is it about voice over IP that makes it more taxable? What about instant messaging? What if I start using voice IM? Is that taxable? It is functionally equivalent to VoIP. The FCC doesn’t want to have to deal with nuances of communications mediums to try to figure out what is taxable and what is not.

Instead of exempting broadband providers from paying into the USF they should be flipping the model around altogether.

Broadband costs will not erode as quickly as VoIP and by taxing all broadband equally you don’t push consumers to use one broadband type over another.

That is just my two cents – one of which I will soon have to contribute to the USF.

Reference: FCC Mulls Taxing VOIP Calls