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USF (Universal Service Fund, Universal Service Charge)
The
USF (Universal Service Fund) tax is a federal tax imposed on interstate
and international usage. The USF was set up to provide telecommunications access
to schools and colleges in rural or low income areas.
Also called the Universal Connectivity
Fee, the USF helps to make
phone service affordable and available to all Americans, including consumers
with low incomes, those living in areas where the costs of providing telephone
service is high, schools and libraries and rural health care providers. Congress
has mandated that all telephone companies providing interstate service must
contribute to the USF. Although not required to do so by the government, many
carriers choose to pass their contribution costs on to their customers in the
form of a line item, often called the "Federal Universal Service Fee"
or "Universal Connectivity Fee."
You
should pay attention to the USF tax, because it varies from one company to another.
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