Why a Music Tax Is a Bad Idea

An anonymous reader writes with a followup to the story posted last week about Warner Music's plan for a music tax for universities. "There's been some debate about this plan and Techdirt has a detailed explanation of why a music tax is a bad idea, noting that it effectively rewards those who failed in the marketplace, punishes those who innovated and sets up a huge, inefficient and unnecessary bureaucracy. Meanwhile, plenty of musicians who are experimenting with new business models are finding that they can make more money and appeal to more fans. So, why stymie that process with a new bureaucracy that simply funds the big record labels?"

Comments

a new bureaucracy that simply funds the big record

[RichMan]

You answered your own question:
"a new bureaucracy that simply funds the big record"

If you were a big record company that is the greatest solution ever. They have to do nothing and roll in the cash at the government and end users expense. Straight to step 4) profit.

Why our governments are even considering it is a question we should ask every law maker out there.

Why the nation of the Boston Tea Party is even considering it? Is an even greater question.

"The Art of Taxing"

[PolygamousRanchKid]

I read in "The Economist" a while back, that the "Art of Taxing," is like plucking a live goose for feathers.

You want to get the maximum amount of feathers, with the minimum amount of fuss.

So, try to sneak in a small tax, that nobody notices, or can do anything about. Or pick on a small minority, and whack them with a big tax.

Here we have Warner asking for a small "taste" from everybody.

I prefer to "eat alone."

Re:While we're at it...

[TypoNAM]

Funny thing is in my neighborhood you can frequently hear some birds chirping like they're reciting car alarm tones and the most hilarious part is they memorized the entire alarm cycle and will do so in the exact order on common alarms.

I'm sure birds in other places have done the same thing, but in order to find out requires actually going outside. :)

Here's one

[Xelios]

Normally I'm not a fan of rap, but I came across a guy by the name of Immortal Technique a few weeks ago that impressed me quite a bit. Not only are his lyrics actually about important things rather than bling, hos and poppin caps, but he seems to get the new way music distribution works.

He's been on an independent label since 2000 (he's co-owner of it now I think) and in that time he's sold maybe 300,000 units total. Is that a lot compared to artists on major labels? No, but he makes $7 per CD sold and lots more money doing live shows. He said in an interview that he was offered $150,000 to make an album for a major label and he turned them down.

He's not making nearly as much money as Jay Z or some other big name rapper, but he has full control over his production and full control over his music, something he says is more important than money. I'll leave you with a piece from an interview:

Lots of people, not just the record labels, told me that this wasn't going to be lucrative or that no one was going to care, but I was fortunate enough to believe in myself and say, listen, I'm going to do whatever I want, with or without the express permission of other people. There's no gatekeeper for me. I don't need somebody to co-sign me to put me on.

Anyone who has supported me has never been because I twisted their arm, it's been out of the goodness of their own heart because they felt the truth in the music. So I think in terms of marketing myself, I don't need to create a rap persona, or a different personality in order to sell records. For me, it's just as simple as getting the word out and getting the music to people. The music sells itself, and the message sells itself.
...
I definitely would like people to purchase The 3rd World in stores and purchase it online, but I think it was more of a way for me to express my frustration with the music industry. I can't believe they have the audacity to call anybody else a thief. As much money as they steal from artists, as much as they don't have a health care program for any of their artists, and I look at stuff like that and I'm disgusted. They go to these conferences and tell kids, "How can you steal a record?" I'm like really?

Full interview

Possibly Incorrect Assumption

[Greyfox]

Everyone seems to assume the money would go to the record companies. How about we establish a music tax and allow musicians to register their copyrights with the Library of Congress to get a cut of it? We could completely remove the music industry and its associated overhead from the equation. Musicians wouldn't have to worry about marketing anymore, everyone would get a share and we could remove the drag on society that the RIAA has become.

Re:More reasons why it's a bad idea

[Iamthecheese]

Copyright was always intended to give artists of all types a temporary monopoly on their works. When a law is abusive, it becomes the citizen's duty to violate it. I stopped respecting copyright the day I read about the micky mouse law, which effectively extended copyright far far beyond the term anyone rationally should have a copyright.