Sen. Cruz Releases Plan to Protect Americans from Biden’s Hidden Phone Bill Tax

Statement

“With Bidenflation still untamed, the last thing the government should do is increase taxes on American consumers. And, yet, that is precisely what the Biden-led FCC is poised to do with the USF—a regressive, hidden tax on consumers’ phone bills that funds a series of unaccountable, bloated broadband subsidy programs. This stealth tax hike is the quintessential Biden ‘junk fee.’

Caught in a dilemma of wanting to further expand USF programs, but having already maxed out the level of taxation that American consumers can reasonably tolerate, the conversation at the FCC and in Congress has focused on expanding the pool of companies and products subject to the tax. This approach is anything but fair to American taxpayers: it would hide the problem of excessive USF taxation rather than fix it and ultimately make tax burdens worse by emboldening further unaccountable spending growth. It represents ‘Bidenomics’ at its worst: reform nothing and hide unsustainable spending through inflationary taxes that Americans would never agree to pay directly.

American taxpayers deserve better. Rather than giving the FCC carte blanche to expand its balance sheet, Congress must reform the USF’s structural problems, re-evaluate its component programs, and get the FCC’s spending under control. In the blueprint that follows, I lay out a plan to do just that.”

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