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Here is a recent example of how the media and the government both perpetuate the idea that prepaid phones somehow relate to dealing drugs.

Bloomfield man arrested on drug charges in Middletown

This article from the Connecticut newspaper, The Middletown Press, describes the arrest of a man on drug charges after a traffic stop. According to the paper “a search of the car yielded drugs and a large amount of cash, as well as two cell phones.” He was arrested for having two and a half grams of marijuana and a bag with marijuana residue.

Somehow this minor arrest is considered “news”. Forget for minute that the amount of marijuana he had, 2 and a half grams, weighs about the same as 3 pieces of popcorn. Three pieces. Also, forget for a minute that the so called War on Drugs is actually a fake war.

What I found interesting about this article is how both the police and the newspaper try to associate prepaid cell phones with dealing drugs.

“The officer also found an open box of small plastic bags, one of which had marijuana residue inside, and two cell phones, one of which was a pay-as-you-go phone that Holung said he used to call a cousin in Jamaica.”

They go on to say,” The arresting officer explained that, based on the fact that he had marijuana, baggies, a prepaid phone and a great deal of cash, ‘a reasonable officer would entertain the possibility that he was dealing marijuana.’”

So, did you catch that? Do you see how he associates prepaid cell phones with dealing drugs? This guy is pulled over with a trivial amount of marijuana, an amount that weighs less than 3 kernels of popcorn, but because he has a prepaid phone on him, he is a big time drug dealer. Any “reasonable” person should make that conclusion.

I see this in the news all the time and it’s an agenda being pushed by the media and government to demonize prepaid phones.

Since prepaid plans don’t require you to sign a contract or get a credit check, you don’t have to provide a social security number. You don’t even have to give your name. With a regular contract plan, your identity is tied to your phone. With a prepaid phone you can remain completely anonymous. Prepaid plans offer a huge level of privacy over regular contract plan. This is the main reason I’m such an advocate of these types of plans.

Let’s not forget that privacy is a fundamental tenant of a free society.

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Oregon currently taxes cell phone plans to fund it’s 911 call centers, but prepaid plans are exempt from the current law. As more people switch to prepaid plans (because they make more sense financially, duh), the state’s revenues are dropping. Lawmakers are looking at ways to include prepaid plans in a new law. The state currently adds 75 cents per month on cell phone bills, but since prepaid plans don’t have bills, the plans aren’t taxed.

The problem is that prepaid plans are typically flat rates in whole dollar amounts. For example, an unlimited monthly plan from MetroPCS is $40 a month. The plans are typically sold on cards with the dollar amount printed on the front. So if Oregon passes this law, will MetroPCS have to start selling a $40.75 unlimited minutes plan? Probably not. What they will probably do is continue charging the same amount and just loose 75 cents on every transaction. Or maybe they will raise their rates to the next round number like $45, but only in Oregon. Which means they will have to print new cards just for Oregon, change their marketing material for Oregon, change their website for Oregon customers, etc. Either way it will cost the carriers a significant amount of money. It will be interesting to see what the state comes up with since other states will follow suit.

Read more: http://www.oregonlive.com/politics/index.ssf/2013/03/legislature_looking_at_taxing.html