Thursday, March 03, 2005

Taxing the Net

A pretty good outing for Dvorak
Taxing the Internet is an extremely dangerous idea to promote. This is because some boneheads in Washington and elsewhere will read these assertions uncritically, and the next thing you know, we're being taxed, once again. So instead of paying $29 a month for Net service, it will be $34.95. Then someone will come along, and it will go higher until it's like gasoline - where an average of 62 cents in state and local taxes is collected per gallon of gas. For what?
For what? Why for government unions of course John!
He also makes mention of the VAT tax idea floating around. The Bush trial balloon is to replace income taxes with a VAT (value added tax) on items, essentially a federal sales tax. Of course it didn't take too long for some genius to propose a gradual migration to such a setup, where the vat is steadily increased over the years as income taxes get lowered. Of course we all know how that would work: it would get stuck halfway and then they'd both up! I personally loathe the VAT tax, and I've always been confused as to why the VAT zealots don't just propose raising the gas tax to $20 a gallon since it would accomplish much the same thing. One more quote:
In California, we pay almost 10 percent for sales tax, 10 percent for personal income tax, and high property taxes, and get little in the way of government services to show for it. This tells me that the American public will put up with a lot of taxation-so pile it on, boys!

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