A new proposal for universal service telecommunications discounts for libraries and schools was introduced July 23 by Sen. Conrad Burns (R-Mont.) and Rep. Billy Tauzin (R-La.). The legislation would cut the 3% federal excise tax on telephone service to 1% and redirect the revenue to fund the e-rate program.
The proceeds from the tax would go to a Telecommunications Technology Trust Fund to be administered by the National Telecommunications and Information Administration, removing the program from Federal Communications Commission oversight. The NTIA would award grants to the states for schools, libraries, and health-care providers.
"This legislation is an excellent compromise that would allow us to keep our promise of educational access to the Internet without sticking it to the American taxpayer," said Burns. "At the same time we are cutting the bureaucracy that oversees the program and relying on current agencies."
Posted July 27, 1998.