Sunday, May 14, 2006

Federal government plans $1 per month tax on telephone numbers.


A plan to make federal phone taxes a flat fee for every phone number and computer modem could cost the nation’s colleges an extra $320 million and prompt some to do away with dormitory phones or raise tuition and fees, opponents say.

Under the proposal, the federal Universal Service Fund fee would shift from the current pay-as-you-use percentage of long-distance calls to a flat $1 tax per month on every phone number.

Because of the number of lines colleges and universities have, the plan would pose a particular blow, many say, resulting in a net annual increase of at least $320 million in taxes at the nation’s 4,325 post-secondary institutions.

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