The Federal Communications Commission (FCC) took a big step forward to save taxpayers their hard-earned dollars with the 'interim' cap on companies subsidized by the High-Cost Fund. That portion of the USF was intended to provide phone service to people in remote rural areas, but has turned into a slush fund of subsidies for too many telephone companies all serving the same areas. However, there is much more work the FCC needs to do to protect American taxpayers now shelling out $7 billion annually for the USF. The FCC-imposed cap on USF waste is only interim in nature; it should be made permanent.
I also urge the FCC to adopt comprehensive high-cost universal service reform, including:
1 - Imposing reverse auctions to ensure cost-efficient spending of USF monies. This is perhaps the single best way of protecting the pocketbooks of taxpayers.
2 - Wiping out fraud, waste and abuse of USF tax dollars. We are deeply disturbed by reports that the spending of as many as one out of five High-Cost Fund USF dollars cannot be accounted for properly.
3 - Proceeding with elimination of identical support so that multiple phone companies serving the same areas do not receive the same amount of subsidization regardless of their costs.
Phone taxes are out of control in America. Wireless customers pay a crippling $21 billion per year in taxes and fees. American consumers deserve less taxation and more common sense from their government. I encourage the FCC to move forward immediately with needed reforms to further rein in the runaway Universal Service Fund.
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