Friday, February 15, 2013

Obama Phone Scam Dates Back to Reagan Administration

We all remember the Obama phone lady last year.  Well, this program has been going on since the Reagan administration.  And of course, many have the mentality that if it’s free, it’s for me:

The Lifeline program—begun in 1984 to ensure that poor people aren't cut off from jobs, families and emergency services—is funded by charges that appear on the monthly bills of every landline and wireless-phone customer. Payouts under the program have shot up from $819 million in 2008, as more wireless carriers have persuaded regulators to let them offer the service.

Suspecting that many of the new subscribers were ineligible, the Federal Communications Commission tightened the rules last year and required carriers to verify that existing subscribers were eligible. The agency estimated 15% of users would be weeded out, but far more were dropped.

A review of five top recipients of Lifeline support conducted by the FCC for the Journal showed that 41% of their more than six million subscribers either couldn't demonstrate their eligibility or didn't respond to requests for certification.

The rest of us who don’t scam the system are aware of the litany of surcharges on our bills.  This is another example of do-gooder stupidity.

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