Even yet still more on revenues …
A few weeks ago, Rep. Dan Bosley gamely commented on this site that closing the Verizon tax loophole would lead to higher bills for consumers, and cripple broadband rollout in rural communities. Let's address these two claims:
- Verizon can only raise its prices as much as the market — or government regulation — will allow. It does not follow that if a business's costs rise, prices necessarily rise.
As we know, Verizon pretty much has a monopoly on local service, particularly in areas where Vonage et al are not available. So maybe they can raise prices without fear of losing business. Shouldn't monopolies be heavily regulated in the prices they charge?
- How's that broadband rollout working out for us? Is that even happening? Even if so, should that be funded by a completely unrelated tax loophole? Is that the best way to do things? Is it really a legal understanding with the state? What's the enforcement mechanism for the state?
In other words, if we continue to grant them this archaic loophole, Are we getting our money's worth?