President George W.Bush is proposing a tax on WiFi and other unlicensed technologies as a way to get some cash into the government coffers and make up for the deficit. Apparently, now that it has become a viable business and innovation opportunity, the Government believes its time to tax it. Yet another example that there is a serious disconnect between Washington DC and Silicon Valley.
President Bush, facing a huge budget deficit, today proposed squeezing more money from the nation’s airwaves by supporting legislative changes that would allow the Federal Communications Commission to set “user fees” on “un-auctioned” radio spectrum. The proposal, contained in the president’s 2007 budget plan and projected to raise $3.6 billion during the decade, is believed to be aimed at unlicensed frequencies used for Wi-Fi and other applications.