Net neuterdom 2


By Tom Quiner

What does net neutrality really mean?

It means the federal government is going to begin regulating the internet like they do practically everything else related to commerce.

Regulations always, always, always impose compliance costs. Regulations oftentimes determine winners and losers. Government regulations are not necessarily bad, but under the Obama administration, they have been particularly onerous.

A letter writer to the Wall Street says so-called net neutrality is simply a smokescreen for new, hidden taxes:

“President Obama’s public stance has been that the FCC should reclassify broadband Internet services as a Title II “common carrier” under the current Telecommunications Act. Title II common carriers are required to “contribute” to what’s called the Universal Service Fund—a government program to bring telecommunications services to underserved areas, with the goal of universal coverage. Whether it’s called “contributions” or fees or whatnot, the function of the program is a tax on corporate revenues to fund services for those who might not have them otherwise.

It’s a redistributive corporate tax paid for by consumers.”

In other words, your costs will go up, speed will decline, your frustration will increase, and innovation will decline.

Obama does it again.

The WSJ letter writer drove home his thesis brilliantly:

“To update Ronald Reagan’s quip: Republicans think every day is the Fourth of July, and President Obama and the Democrats think every day is April 15. The FCC’s net-neutrality move is but the first step toward death by typical government overregulation.”

2 comments

  1. I don’t mean for this to sound rude, but do you know what net neutrality means? You noted that this will allow the government to pick winners and losers. The alternative is to let Comcast, Time Warner, and AT&T pick winners and losers. Personally, I would rather have it in the hands of someone I can vote out.

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