Telcos: A long history of gouging

November 19th, 2008 by Mitch Brisebois

Our friend Alec often writes about telco gouging… $6,000 per Gb data plans, Impossible iPhone deals.

Telcos aren’t the only ones gouging. Since 1932, the US government has been taxing conversations. Here’s an exerpt from the Tax History Project:

In 1932 economic emergency prompted Congress to adopt a new version of the telephone tax. Desperate for revenue, lawmakers imposed excises on a wide range of goods and services, including communications. Critics were unhappy. “Under this section every voice over a long-distance telephone will become sweet music to the White House,” wrote H.I. Phillips in The Washington Post. “Uncle Sam is going to put a levy on all messages except those sent by smoke signal.”

Unfortunately, most municipal bylaws now forbid smoke signals!

Where there’s gouging, there’s innovation, like this handy Dial-Lock for your candlestick! The company has no plans for a Blackberry model.

Phone lock via Modern Mechanix