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"Enhanced" Bail-out


You may have noticed that several states added additional taxes to phone bills in the last few years. These new taxes (sometimes deceptively called "fees") were imposed with a promise that they would lead to greater public health and safety by making sure that citizens could use the 911 feature on their voice over IP (VoIP) phones or even from wireless phones, so-called E911 services.

But, in the last couple of years, some states could not resist dipping their sticky fingers into the piggy bank to take collected tax money--that designated to be used to protect the public--to spend freely for other purposes. These slush funds, a virtual monetary representation of irresponsibility, siphon money from the legitimate need of funds for E911 services or to upgrade existing equipment and networks for better service. Without funds, in time, systems will fail, infrastructure will falter and training will expire.

And with public safety now exposed what happens? Additional taxpayer money will have to be appropriated by the state legislatures to pay for what taxpayers already paid for once--essentially another bailout.

Even in the FCC's second annual report to Congress a pattern of repeat offenders is emerging identifying these raiders of public safety funds: New York, Illinois, Nebraska, Oregon, Wisconsin, and Rhode Island.

A further correlation of fiscal imprudence is also clear, two-thirds of the worst offenders are states that already tax wireless customers at the highest rates. With Nebraska at 23.14%, New York at 20.74%, Rhode Island at 19.32% and Illinois at 19.03%, these states tax mobile access at many multiples higher than gambling proceeds, liquor, or even pornography.

Wisconsin has even allowed the 911 fund to sunset after the state raided it, and the state legislature passed a new fee called "Police Fire and Protection Fee" dropping the pretext of a public safety fund and depositing the revenue directly in the general treasury to be spent freely.

Certainly some officials should be held accountable for their thieving ways, actions which drive public safety accounts to bankruptcy.

Bankrupting those accounts to go on spending sprees is beneath contempt, but the real bankruptcy is one of morals.