Bragg criticised politicians for ignoring the impact ITV has on British television and said the network was "unjustly under-rated" by peers and MPs during the 2003 Communications Act.
He also said the network should not be made to pay the £200m broadcasting licence fee in a digital age when it faces stiff competition from non-terrestrial broadcasters, like satellite giant BSkyB.
"They're killing the golden goose in ITV if they're not careful. They can't continue to hang around its neck the burden of £200m in tax," he said.
Bragg also hit out at BSkyB and Rupert Murdoch saying they had got away with murder.
"Sky has been given a huge amount of licence and favour by the Labour government and the previous government. It has no public service broadcasting requirements. It should be more of a level playing field," he said.
Bragg was speaking at the launch of his new five-part documentary series 'The People's Channel' celebrating 50 years of ITV.
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