The federal tax on your cell phone bill pays for cellphone service for those who can't afford cellphone service. See that fee on your phone bill labeled USF? That's where the money goes. I just love this thought process that actually thinks free phones come from the phone fairy. Just like free Healthcare comes from the free Healthcare Lord of La La Land. When you get "free" stuff from the government it means somebody else paid for it. Why can't the left wrap their heads around this? Free stuff from the government is paid by taxes. The more "free" stuff you get, the higher your taxes become. Really, it's not rocket science.
The link you posted from the not-always-so-correct Factcheck.org basically said the same thing I'm say but in an extremely convoluted and roundabout way.
I confess that I don't know much about this program. First of all, I don't get a phone bill. I have MagiJack, and I paid a single fee...$80, as I recall, for all my telephone years for 5 years. Second. The program, as stated above, had absolutely nothing to do with either president Obama or president Regean (I was just rattling your cage about that). It was put togther by the FCC, and has absolutely nothing to do with "rewarding the base". Third, why in the hell would you care if it provides a free land liine vs. a free cell phone? Fourth, what does all this have to do with the price of rice in China? Fifth, which party are you going to blame for requiring seat belts on automobiles?