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Cellphones Communications The Almighty Buck Technology

California Considers Text Messaging Tax To Fund Cell Service For Low-Income Residents (thehill.com) 244

According to a report from the California Public Utilities Commission (CPUC), California may soon tax text messaging to help fund programs that make phone service available for low-income residents. The report says the tax would likely be a flat fee added to a monthly bill instead of a per text tax. The Hill reports: The report outlines the shrinking revenue coming from a current tax on the telecommunications industry and argues that a new tax on text messaging should be put in place to make up for it. "From a consumer's point of view, surcharges may be a wash, because if more surcharge revenues come from texting services, less would be needed from voice services," CPUC spokeswoman Constance Gordon said in a statement. "Generally, those consumers who create greater texting revenues may pay a bit more, whereas consumers using more voice services may pay less." "Parties supporting the collection of surcharges on text messaging revenue argue that it will help preserve and advance universal service by increasing the revenue base upon which Public Purpose Programs rely. We agree," the report states. The CTIA, a trade association representing major carriers in the wireless industry, says the tax is anti-competitive and would put carriers at a disadvantage against social media messaging apps from tech companies such as Google and Facebook. The CPUC is expected to vote on the proposal in January 2019.
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California Considers Text Messaging Tax To Fund Cell Service For Low-Income Residents

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  • by nospam007 ( 722110 ) * on Wednesday December 12, 2018 @05:10PM (#57794450)

    The iPhone crowd have their own messaging system and the rest uses whatsapp et al.

    If the tax gets through, the latter will be used by everyone.

    • Re: (Score:2, Informative)

      by Anonymous Coward

      If by "Nobody" you mean "95% of people" then.. I guess? It always amuses me how out of touch people are with reality.

      "Hey guise, nobody uses credit cards anymore, it's all BITCOIN!!!!". Sure.

      • he rest uses whatsapp et al.

        Yep.....my anecdotal experience is...I have YET to meet anyone that uses whatsapp, much less even has ever heard of it before.

        Everyone communicate with uses text....Apple switches to use whatever the recipient uses..so, likely a mix of iMessage and regular text...

    • You missed the part where it would be a flat fee. So in other words they're taxing any cellular plan capable of texting, whether or not you actually text.

      • So then people will demand plans without texting.

        • by rtb61 ( 674572 )

          Wait so people VOIP but they don't TOIP, now that just don't make any sense what so over, you people have been scammed. In reality you are actually TOIPing but being charged likes its an extra special service, ohh you schmucks.

          • I'm not the one trying to tax it. But someone's going to have to draw an oddly arbitrary line somewhere.

          • by faedle ( 114018 )

            Most VoIP providers charge a per-text fee for sending text messages via SIP. That's because the gateways to the major cell carriers charge for each text message (granted, it's usually fractions of a penny, but the end result is that the end user gets charged a penny-per-text). On top of that, many of the low-end VoIP end terminals (ie. phones) don't support anything other than SIP (or MGCP), and at that an even smaller subset handle texting.

            My SIP provider literally just started handling text messages ove

      • by bws111 ( 1216812 )

        Yeah, it says that. It also says "consumers who create more text revenue" will pay more. Then again, it also says the purpose is to increase revenue, while also claiming people won't be paying more. The whole thing is full of California-speak.

    • by antdude ( 79039 )

      SMSes still use between iPhones and Android hpones though. I only know one person who uses WhatsApp, and he lives in China.

  • So people will be billed for incoming? with only choice to get out of it to block all txt

    • by raymorris ( 2726007 ) on Wednesday December 12, 2018 @05:49PM (#57794662) Journal

      Let's play a game. Somebody posts a news story and the rest of us try to guess whether it comes from the Onion or from California.

      That could be a very challenging game.

      Okay, okay - I know someone reading this probably *likes* California, and doesn't think California politics is ridiculous. That's cool. Thanks to Article 1 of the Constitution, the rest of us aren't allowed to tell you how to live. California can have whatever laws you all want. Just in case anyone forgets to read Article 1, the framers repeated it in the 10th Amendment:

      The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

      So don't worry. Even though I think you guys are a parody of yourselves, I'm not going to try to stop you, I can't stop you. You can tax blinking if you want to.

      • Comment removed based on user account deletion
    • It says flat tax. If your cellular service includes texting you get an extra tax.

    • Which I already do.

      Number of texts I have sent or received in the last 5 years: 0

  • by rsilvergun ( 571051 ) on Wednesday December 12, 2018 @05:18PM (#57794494)
    for low income residences than with a regressive tax [investopedia.com] that disproportionately impacts the working class, including the working poor.

    Seriously, in 2018 does anyone still fall for this crap? It's like when they rebranded trickle down economics as "Tax cuts for Job Creators" and left out the fact that "Job Creators" don't pay taxes when they invest in their companies...
    • Don't want to pay the tax turn off texting. Your regressive tax has just become progressive.

      • data isn't. So if you have a pricey plan and an iPhone you won't notice this in the slightest. If you've got a cheap subsidized burner phone it'll hit you hard. You'll have to choose between texting and doing your homework. A lot of regressives like that choice.

        There's a sizable group of people in this country that want poor people to suffer. The idea is that their suffering will encourage them to stop being so damn poor. Now, virtually all research on the topic shows that pressure does not in fact make
    • Many people don't seem to understand that the poor and the rich can drive roughly the same amount of miles (fuel taxes), consume the same amount of alcohol and cigarettes, and use the same amount of cell phone service.

      Even if a rich person consumes 10x as much fuel and 100x as much alcohol, the tax is generally a smaller fraction of their income than it is for a poor person. It hits middle-class harder, since the marginal utility of any spending is lower, so they'll toss more pennies here and there for t

  • When a state needs to tax everything tech, considers a ban on ban employee cafeteria?
    Wont enforce laws about trash and waste in the streets. Park RV and tents in the streets.
    Has to clean waste from its streets.

    How many more "tech" tax attempts before tech understands that many other US states are clean, safe, welcoming and low tax?
    Move to a state where you don't have to "pay a bit more" in new tech tax and you can invest a lot more.
    • by zippo01 ( 688802 )
      The issue is that as the tech move the workers who voted for all this in the first place, vote more of the same people in to office and it just slowly moves with them...
  • Should tax people on a per character basis.

  • How bout taxing things like multiple lines, or those $1000 phones or something? Oops that would tax those that are well off, best to tax something the poor have to use to reduce their voice and data costs.
  • Better idea (Score:5, Funny)

    by grasshoppa ( 657393 ) on Wednesday December 12, 2018 @05:32PM (#57794550) Homepage

    Let's tax every stupid idea a politician has. 1 cent per.

    We'd be able to pay off the national debt before the end of the year.

  • What can possibly be more logically coherent than regressive taxes to help the poor?

    After massive fraud magnet that USF has proven to be states just can't help themselves to more of the same.

  • Just as long as it doesn't send us back to the dark ages [slashdot.org] of text messaging (2008).
  • subsidizing? wtf (Score:5, Insightful)

    by ahodgson ( 74077 ) on Wednesday December 12, 2018 @05:37PM (#57794584)

    You can have a prepaid cell in California for $12/month. No one needs subsidizing. End the subsidizing and you don't need a new tax. ffs.

    • Yes, but politicians get more votes from low-income residents when they give low-income residents things totally for free. When someone buys a $12 prepaid card a politician can't get the credit for it. When a politician pushes a law that gives phone service away totally for free, that will buy them votes.

    • by misnohmer ( 1636461 ) on Wednesday December 12, 2018 @06:21PM (#57794840)

      Remember, every government program is an opportunity for people to skim, grant contracts to friends and family or for kickbacks in one form or another. Maybe you have a family member who needs a job, why not hire them to administer some new program and of course pay for the job it of the same pool of taxes collected for that program.

  • Because text messaging is cheap enough for us "Low Income" folks.... i dont get it.
  • That makes a lot more sense than taxing text messages

  • by misnohmer ( 1636461 ) on Wednesday December 12, 2018 @06:01PM (#57794744)

    1. If it's going to be a wash because they will lower voice service taxes, why bother, just take a portion of voice service taxes - unless somehow California has separate governments for voice and text services.

    2. How do I reconcile those two statements:
    "The report says the tax would likely be a flat fee added to a monthly bill instead of a per text tax."
    "consumers who create greater texting revenues may pay a bit more"
    If the tax is flat, how to consumers who create greater texting revenue pay more? Did they not think it through, or just telling people whatever they want to hear?.

    This is straight from the government "How to get some more money to skim from" handbook - ask for a new tax, make it small do people don't think it matters, tell everyone what they want to hear, get sufficient approval (or indifference) from the public to add the new tax, wait a year, increase the new tax, award new contracts to people who now owe you. After all, six taxes at 4% each don't seem as bad as one at 24%, right?

  • Go back to e-mail. Or IRC, or ....

  • I can almost guarantee that their "low income" definition will have a hard cut-off. This will just make the hurdle of transitioning from welfare to work that much harder to jump. Anybody above the low income bar will be regressively taxed. California's government really needs to turn in it's progressive card. They've totally forgotten what that word originally meant.

  • This is pretty interesting, but what is going to be really interesting is to see how governments end up replacing gas taxes as electric cars become more popular...

    They are going to have to do something, in the end I am thinking it will probably have to be an extra yearly fee on electric vehicles. Which will make hybrids rather unpopular, as you get taxed twice...

    • Well, rule out any method that doesn't involve the taxation itself adding an additional unnecessary cost that is paid for through the act of taxation.

      For example, in Oregon they're already piloting a GPS unit that you're required by law to connect to your vehicles diagnostic port. [myorego.org] How's that for convoluted and needlessly expensive? It even comes with with the added bonus of privacy and security concerns.

      Sacramento is going to piss themselves in excitement in copying this system for their state, if they

  • Individuals making $27,000 a year (the approximate current limit) can afford to pay $10-$15 a month for a basic phone plan. Reduce the maximum income to $20,000, or to whatever it takes to fit within the program's funds. Or if you must, make it be for homeless people only -- they're the ones whose lives it makes the most difference in (connecting them to services and making it more possible to find work).

    Incidentally, this same approach could help California's affordable housing crisis. Stop making families

  • In fact, in CA, the poor have to pay for the Lifeline help for people in other states, yet they cannot get help.
  • You're saving a ton of bandwidth vs. making a phone call. How we got into this bizarro land of pretending like texts are some premium feature is beyond me.

  • "From a consumer's point of view, surcharges may be a wash, because if more surcharge revenues come from texting services, less would be needed from voice services,"

    Except that you're still adding a new surcharge so there is an instant increase in cost. It's never a wash from the consumer's perspective, only from the tax collectors', and then only after it's been in place.

    Besides, the whole point is that, "The report outlines the shrinking revenue coming from a current tax on the telecommunications ind

  • This is about declining number of land line users paying into the utility fee attached to every physical phone line. The Utility commission isn't going to tax you per message, they are going to slap a monthly fee on your cell account. There will be no getting around it. It sucks but it's not going to be a per text sent or received issue. You may continue your blissful ignorance.

  • Comment removed based on user account deletion

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