FCC Backpedals From Internet Tax

The Federal Communications Commission is rapidly backpedalling from a proposal to tax broadband Internet service after a public outcry over the issue, according to a story by Brendan Sasso at The Hill.

Democrats and Republicans at the agency are now blaming each other for pushing the idea in the first place.

Neil Grace, a spokesman for Chairman Julius Genachowski, said the commission only made the proposal “following the urging of Republican Commissioners and members of Congress."

"The Chairman remains unconvinced that including broadband is the right approach,” he said.

Robert McDowell, the only Republican on the commission when the proposal was floated earlier this year, flatly rejected that he ever supported the idea.

"I have never suggested taxing broadband Internet access," he told The Hill.

McDowell said he is skeptical that the FCC even has the legal authority to tax Internet service.

Consumers already pay a fee on their landline and wireless phone bills to support the FCC's Universal Service Fund, which aims to provide phone service to everyone in the country, even if they live in remote areas.

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