CNet reports that new legislation proposed by two U.S. congressmen on Thursday could use taxes on Internet telephony and broadband services to fund subsidies for rural broadband deployments.

House Energy and Commerce Committee members Reps. Lee Terry (R-Neb.) and Rick Boucher (D-Va.) released a draft of the Universal Service Reform Act of 2005, which calls for new taxes to be added to voice over Internet Protocol and broadband services to help pay for the Universal Service Fund. The draft also proposes expanding the fund to subsidize rural broadband deployments.