The next time you pay your cellphone bill, take a closer look at the section that explains about the government fees and taxes you’re paying. Have you ever noticed one called “Federal Universal Service Fund”? You probably didn’t know what that meant, but it means that you’re buying cellphones for other people.
The predecessor of the Universal Service Fund had its origin years and years ago as a way to pay for home phones for people who couldn’t otherwise afford them. (It was originally high long-distance fees that subsidized free phone lines.) Even after the current system started, the fee was pretty tiny, so nobody much complained about this tiny bit of socialism. It was just another itty bitty tax.
But that tiny little tax has become a monster that’s rife with fraud and abuse — and you’re paying for every bit of it.

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