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Democracy & Technology Blog Time for Tennessee’s hidden phone tax to go

Hance Haney
March 21, 2011

In Tennessee, legislation to eliminate the hidden subsidies in intrastate access charges applied to long-distance calls which originate and terminate within the state has passed the Senate Commerce Committee and the House Sub-Commerce Committee.
The votes in the two panels were overwhelming: 8-1 and 12-1.
It has taken real leadership by the bills’ sponsors — Sen. Mark Norris and Rep. Gerald McCormick — and others to write and pass legislation dealing with this matter over committed opposition.
As amended, SB 0598 would prohibit telecommunications providers from charging intrastate access charges that exceed interstate access charges. The amendment includes a 5-year transition, beginning in April 2012. The House bill is HB 0574.
As I’ve blogged about here and here, eliminating the hidden subsidies in intrastate access charges will promote private investment and benefit consumers.
Update: SB 0598 passed in the Senate on Mar. 24th, Ayes 26, Nays 6. It passed the House Commerce Committee on Mar. 22nd.

Hance Haney

Director and Senior Fellow of the Technology & Democracy Project
Hance Haney served as Director and Senior Fellow of the Technology & Democracy Project at the Discovery Institute, in Washington, D.C. Haney spent ten years as an aide to former Senator Bob Packwood (OR), and advised him in his capacity as chairman of the Senate Communications Subcommittee during the deliberations leading to the Telecommunications Act of 1996. He subsequently held various positions with the United States Telecom Association and Qwest Communications. He earned a B.A. in history from Willamette University and a J.D. from Lewis and Clark Law School in Portland, Oregon.