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Government Regulation Widens Digital Divide Contact: Christin Tinsworth Washington - CSE has attended more than 150 presidential campaign
events in Iowa, New Hampshire, Michigan and South Carolina. Our staff and
activists have directly asked the candidates more than 200 questions. We
know voters are passionate about technology issues and have appreciated
willingness of candidates to answer specific questions. Presidential candidates need to tell voters how they plan to break down
obsolete government barriers and unleash the full potential of the
high-tech economy for consumers. Government taxation and regulation has exacerbated the "digital
divide." Some areas of America are receiving the benefits of high-speed
Internet access, while others are denied. Outdated federal regulations-
left over from the break-up of Ma Bell- limit the ability of some phone
companies to provide highspeed Internet service to consumers. As a result,
there are fewer companies that compete to provide consumers with
service. Consumers pay between 20 percent and 40 percent in taxes on
communications services -rates similar to those imposed on alcohol and
tobacco. Consumers pay nearly $6 billion every year for a phone tax
originially enacted in 1898 to pay for the Spanish American War. The
government imposes regressive rates of taxation on access to the
technology that Americans want to rapidly expand to all regions and to all
income levels. We can give consumers the full benefits of high technology by removing
high taxes and obsolete government barriers to competition and innovation.
Before Saturday's South Carolina Republican primary, candidates should
answer the following questions: "Senator McCain, you have signed CSE's e-Freedom pledge, which calls
for a permanent ban on Internet taxation and the elimination of the
federal telephone excise tax. These are positive steps to encourage the
development of the Internet and eliminate regressive taxation on
communication. Shouldn't we also repeal regulations that stop phone
companies from providing Internet service, so we can expand access and
reduce the government imposed digital divide?" "Governor Bush, you have proposed an aggressive economic program that
includes a large tax cut to keep the surplus out of Washington.
Additionally, you have proposed a bold plan to end lawsuit abuse because
trial lawyer greed is threatening the ability of our entrepreneurs to
invest and innovate. And, your education plan recognizes the importance of
competition and the need to educate individuals for our high-tech future.
Will you show the same boldness and vision by repealing taxes and
regulations that perpetuate the digital divide? For example, how long will
you keep the Internet free from discriminatory taxation? Do you support
eliminating the federal telephone excise tax and will you repeal
regulations that prevent phone companies from completing to carry high
speed Internet services for consumers?"
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