Big Ugly Gray Boxes are cropping up in Shorewood, and AT&T is certainly not scoring any points with those. And while Shorewood should look at ways to mitigate that blight, the larger issue is one of new technologies, competition and taxes.
Time Warner cable has a monopoly on cable TV and a near monopoly on “pay” TV services in Shorewood and most other communities in this area, and they want to keep it that way. Their only competition is satellite TV, such as Direct TV, and that is not an option for most renters, and involves installing a dish which can be pointed in a certain direction.
Time Warner (TW) pays Shorewood for its cable monopoly here. On the cable bills TW sends out, there are two separate itemized charges, one for the “Franchise Fee”, usually about $5 per month, and one for the “Community TV” Fee, usually about 15 cents per month.
These “fees” are a sweet deal for elected officials who want more money to spend, but don’t want to be seen raising property taxes. The Franchise Fee, of course, is a TAX – and it is also what is considered a “regressive” tax, as it taxes the least affluent in the community the same amount as the most affluent – where as property taxes are set up “progressively” taxing higher valued property more.
This monopoly situation also includes a “Hidden Cost”. According to some studies, communities that give cable providers a monopoly, pay as much as 25 % more for their service. IE. if the average monthly cable bill in Shorewood is $70, this would amount to an additional cost of $17.50.
Based upon the example above, putting together the Obvious Tax of $5.15 per month, plus the Hidden Cost of $17.50, means that in Shorewood we are paying an average of $271.80 more per year, for Time Warner to have the monopoly.
Hence the problem that AT&T poses to both Village Politicians and Time Warner. With new technological advances, AT&T can offer the same viewing as Time Warner, over the telephone lines. This new competition threatens the higher fees that Time Warner can charge, and it forces the politicians to look for other ways to feed the tax machine ! That is why Shorewood, along with other local municipalities, are trying to sue AT&T, to either keep their new service out, or to agree to charge a tax to the end users (that be Us !).
In my opinion, I think we should see what we can do about the Big Ugly Gray Boxes ………. but let’s give a little thought to our response to new technologies, and look for ways to enhance and encourage them. New technology and information are the keys to tomorrow’s success for ourselves and our children. Let’s not look at them as simply possible new sources of taxes.
