Senator Warns of Email Tax This Fall

cnet-declan writes "State and local governments in Washington this week began an all-out lobbying push for the power to tax the Internet, according to our article at News.com. A new Senate bill would usher in Internet sales taxes, and the Federation of Tax Administrators (representing state tax collectors) advised senators at a hearing on Wednesday not to renew a temporary moratorium limiting broadband taxes that expires in November. One irked Republican senator warned that unless the moratorium is renewed, we could start seeing email taxes by the end of the year. Former House Majority Leader Dick Armey blames it on the Democrats taking over, as do Yahoo and eBay lobbyists. Is this a non-hoax version of bill 602P?"

Comments

Democrats, right, of course

[hxnwix]

That makes sense because Mr. Enzi, the bill's sponser, who is listed at the very top of the bill as its sponser, is a Republican.

Yes. That's right. Republicans want big government in your computer and want big government's hand in your wallet.

Re:Democrats, right, of course

[KermodeBear]

Unfortunately, this is turning out to be more and more true as time goes on. The Republican party is really losing touch with traditional conservatism: Small government, low taxes, state rights. That's why I'm leaning more towards the (weirdo-filled but well meaning) Libertarian party these days.

Re:The problem...

[Dunbal]

Is the people need to stop electing idiots.

      No, the problem is only idiots run for election.

Familiar

[Sciros]

It's similar to what the Dems pulled with the "bringing back the draft" BS they tried to claim Republicans were planning during the 2004 election (Dems were the ones who proposed twin bills for it, but then voted against it cause it was just a campaign tool to get college students to pledge votes for Kerry).

Now Republicans seem to be doing the same thing. Propose a BS bill, then claim "it's the Democrats' fault!"

I F-ING HATE POLITICS

Re:Fine: Define email

[Maximum Prophet]

From a bricks and mortar perspective, *stopping* the shipment of goods shipped over state lines would be a good thing. I can see many states setting up tax systems that are so complicated and expensive it effectively shuts down direct marketers. (internet and catalog)

The thing is, the constitution is clear on this. The states don't have a right to charge taxes on stuff shipped across state lines. Why are we even having this discussion?

Re:Fine: Define email

[AKAImBatman]

The thing is, the constitution is clear on this. The states don't have a right to charge taxes on stuff shipped across state lines. Why are we even having this discussion?

Because Congress (both state and federal) likes to keep the Supreme Court on its toes? It certainly seems like it sometimes. :-/

Let's cut to the chase

[DanielMarkham]

Let's cut to the chase:

• It's not about partisan politcs. It's a power grab by a political system that continues to trade money to special interests for votes. Not all spending is bad. Some is. But that's a conversation for a different day.
• It's not about email, sales tax, or whatever. It's about having a lot of money floating around on the net, and politicians wanting a piece of the action.
• It's not about reason. Yes, taxing email makes no sense. Neither does taxing online sales, which will just move elsewhere or underground. This is the same political setup as DRM -- people will wave their hands around and make great moral arguments about people "paying their fair share" and "making big business pull it's weight" ad infinitum. If you choose to buy this schtick, don't come complaining to me
• These things have historical patterns which are instructive. Take a look at the income tax: passed in the early 1900s to pay for WWI. Supposed to only be around a few years. The Alternative Minimum Tax (AMT), passed recenty, supposed to sock it to the rich guys who have too many tax breaks. In each of these cases and dozens more, the bozo-head making the original pitch disappears but the tax never does. Most times it just grows. "Letting the moratorium expire" or "streamlining the tax sysem" is just a way of getting a foot in the door. They know they can't go after your wallet directly, so they're willing to take a decade or two. Like the story of boiling the frog.
• This isn't about good people or bad people, or good government or bad government. This is about the natural tendency of the government over the past seventy years to consume more and more resources from the people it is supposed to be protecting. I imagine most of these expenditures are great ideas. The problem is that we can't pay for the crap politicians got elected on twenty years ago, much less the crap they're promising for the upcoming election. Both parties, full of great, smart, ethical people, are stuck in a process that is always looking for more money to pay off special interests. Nobody fixes a problem that isn't immediate and crtical because they get votes for blaming things on the other guys.
• It's a losing game. We can try to stop them at this line by trying to pass something like a constitutional ammendment preventing any tax on internet-based economic activity, but this is a thousand-year battle, guys. One which we'll probably lose very quickly while you-all go patting yourself on the back for not buying into the FUD and being so much smarter the the political wonks.
• It'll work just like DRM. In the grand scheme, it will push the economy underground where it will be completely unregulated and offshore where people actually appreciate the business. But pay attention: soon (within ten years) we'll be hearing those same old DRM stories spun for sales taxes. Granny makes rugs in basement and goes to jail for failing to file. Big companies setting up offshore pulling american dollars for the same stuff that used to happen here. More politicians will appear on TV yelling at the other side for getting us into this mess, and promising to fix it (either by law and order or by relaxing the law). Nothing will happen, though, because this will become yet another issue that can be used to stir up support for an election. Fixing the problem would be like throwing cold water on the base, so it ain't gonna happen.