Tuesday, August 9, 2011

Why work if you can get it all for free or at reduced rate if your poor?

By Brendan Sasso -

Television and Internet service provider Comcast unveiled a plan offering discounted Internet and computers for low-income families last week.

The Internet Essentials plan offers Internet service for $9.95 and a "netbook-style laptop" computer for $149.99.

To be eligible, families must have at least one child receiving free school lunches, must have been a Comcast customer for at least 90 days and cannot have any overdue bills with Comcast.

The plan will provide download speeds of up to 1.5 Mbps and upload speeds of up to 384 Kbps, according to Comcast.

The plan will be available starting in the 2011-12 school year. Comcast intends to accept new customers into the plan for three school years.

The plan follows Comcast's recent merger with NBC Universal. Federal regulators allowed the merger to go forward with the condition that Comcast agree to make affordable broadband access available to 2.5 million low-income households.


"How many subsidized are we expected to provide the `poor`? They have subsidized gas/electricity, phone, internet, housing, food assistance, college, WiFi, EIC, Child Tax Credits, etc. I`m sure there are others which escape me at the moment. It`s like having to pay for children you didn`t father...."

A serious problem we have in accounting for all these "freebies" is that they are never included in the income that defines poverty. I pay $80+ for my Comcast internet service, albeit a higher speed service, and if I wanted to provide this service to my daughter I would be required to pay a gift tax on the value.

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