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Mississippi Bill Would Tax Software Sales

Byzantine writes "The Mississippi Legislature has passed MS House Bill 1461 which would amend the state's tax laws specifically to charge sales tax on 'electrically transferred digital products,' including products bought via mail-order. The bill is currently on the governor's desk awaiting signature." Softpedia claims that 20 states have enacted download taxes of one sort or another — most of them for iTunes music — and that New York is considering taxing downloads of all kinds.

293 comments

  1. thus ensuring by bugs2squash · · Score: 1

    Mississippi stays at the bottom of the heap

    --
    Nullius in verba
    1. Re:thus ensuring by geekoid · · Score: 4, Funny

      Maybe someone should tell them it's not FIFO~

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:thus ensuring by yog · · Score: 4, Interesting

      Mississippi stays at the bottom of the heap

      Don't worry, they'll be joined shortly by many other states hungry for revenue. The problem with this bill (well, one of many problems, actually) is that it will damage the nascent e-book and e-music industry just as they're struggling to get established, even as paper and CD publishers flounder. Also, it will largely tax the teens and 20-30-somethings who actually purchase these kinds of products. A rather regressive tax.

      It should be easy enough to get around this law. If you read the bill, it spells out the precise types of electronic "products" that are taxable. So the vendors can simply convert these products to non-ebooks and non-music and non-videos, and provide a little converter that allows the buyer to change them back into ebooks and music and videos at his/her discretion. We don't sell music, we sell blobs of binary data. If you find a way to transform it miraculously into your favorite music, more power to you!

      --
      it's = "it is"; its = possessive. E.g., it's flapping its wings.
    3. Re:thus ensuring by penix1 · · Score: 2, Interesting

      An even better idea would be a refusal to sell to residents of those states. The moment the billing / destination address is identified as a taxing state, refuse the sale based on the tax legislation. If it's online, link to it specifically. Nothing like political pressure to make a politician squirm. Once those states stop having sales from Internet based sources, they'll change their tune.

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    4. Re:thus ensuring by LaskoVortex · · Score: 1

      Why don't they just tax email advertisements? Then they can go after those fuckers with a gun when they don't pay up.

      --
      Just callin' it like I see it.
    5. Re:thus ensuring by digitig · · Score: 1

      How many businesses are going to say "Hmm, shall we make a profit, or shall we make a political statement"? Rather few, I think, will go for the principle; almost all will take the sale. The ones who would have sufficiently strong principles (in the appropriate direction) are probably producing open source anyway. Does the bill tax support?

      --
      Quidnam Latine loqui modo coepi?
    6. Re:thus ensuring by Greyfox · · Score: 3, Funny

      I don't think they actually have computers there. I've never met anyone claiming to be from Mississippi on the Internet.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    7. Re:thus ensuring by b4upoo · · Score: 1

      Obviously such a law can not be enforced. But the thought behind this new law is disturbing. The notion that a government can muck about and stir up things to create a new source of taxation needs to be nipped in the bud so that we are not forced to perpetually fight such obnoxious ideas.

    8. Re:thus ensuring by TheSpoom · · Score: 1

      I don't usually go with what's normally a Republican line of thinking, but for something like this, businesses absolutely will move states to avoid being subject to a sales tax.

      This will only take jobs away from Mississippi and other states that pursue such policies.

      --
      It's better to vote for what you want and not get it than to vote for what you don't want and get it.
      - E. Debs
    9. Re:thus ensuring by oldframe_tk · · Score: 1

      I don't think they actually have computers there. I've never met anyone claiming to be from Mississippi on the Internet.

      I'm both using a computer and from Mississippi! Amazing, right? Thanks for showing your lack of intelligence by trying to point out ours. People should really learn that stereotyping is not very efficient- EVERYONE is different, including people of the same ethnicity/region/religion/etc. K? thx.

    10. Re:thus ensuring by Anonymous Coward · · Score: 0

      shall we dump all the servers into the bay then??!?

    11. Re:thus ensuring by cayenne8 · · Score: 1
      but how are they gonna enforce this?

      I mean...the reason hard goods aren't taxed by sellers online..is due to the myriad of state tax laws, making it impossible pretty much for any company to figure how to collect what and how much for who.

      That leaves it up the individual to volunteer to pay the tax...and we know how well THAT has worked so far, eh?

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    12. Re:thus ensuring by rtb61 · · Score: 1

      You need to stop and think about what you have just written. in order to stick it to states that apply sale tax to closed source proprietary software including digital downloads you want to refuse to sell closed source proprietary software to those states, hmm, you want to force them to use free open source software, so exactly how do you win as a seller of closed source proprietary software.

      Of course as a supporter of FOSS, I think your idea is fantastic and heartily recommend it but I doubt it is for the same reasons as you do ;D.

      --
      Chaos - everything, everywhere, everywhen
    13. Re:thus ensuring by negRo_slim · · Score: 1

      The notion that a government can muck about and stir up things to create a new source of taxation needs to be nipped in the bud so that we are not forced to perpetually fight such obnoxious ideas.

      Yes heaven forbid the government gets an idea stuck in it's craw about new forms of tax revenue, marijauna and prostitution come to mind as legitiment areas the government could establish taxable revenue in.

      --
      On the Oregon Cost born and raised, On the beach is where I spent most of my days
    14. Re:thus ensuring by ImNotAtWork · · Score: 1

      Negative, the big fish will be targeted by the Attorney General of said state and be forced to pay or be dragged into court.

      --
      open source sub sim. I might start coding again for this. http://dangerdeep.sourceforge.net/contribute/
    15. Re:thus ensuring by mysidia · · Score: 1

      The courts are likely to find that what they sell an e-book, when they sell something and provide a tool to convert into an e-book, or the legislature will expand the law very quickly.

      One thing government, the legislature, and the courts are prolific at are rejecting, preventing, and closing tax loopholes like that.

      Even if there might be such a hole by the letter of the law, the courts will probably interpret it broadly enough that the sale of the blob is a sale of an e-book. With few exceptions, consumers don't get to utilize tax loopholes.

      In this case, the states are desperate, they need the cash so badly, we should be thankful they haven't moved to add a CHARGE to free downloads (yet).

      5 or 6 years from now, you may have to pay $.50 in download taxes to get the brand new copy of Apache.

      They could deem that there's really no such thing as a free download, since all downloads utilize some bandwidth, and the party offering the download buys such bandwidth from their ISP.

      In reality, the download isn't free, the person providing it is merely covering the charge, so additional taxes are due for each download based on the bandwidth consumed, divided by number of downloads, PLUS a mandatory minimum markup (just like the IRS forces you to charge interest if you loan some cash to a friend, they could thus force free download providers to take a virtual "profit" and pay per-download taxes on that).

    16. Re:thus ensuring by CodeBuster · · Score: 1

      This will only take jobs away from Mississippi and other states that pursue such policies.

      The jobs left decades ago along with just about every other non-localized business in the state. Mississipi is famous for its unsophisticated rural jurors (who tend to hand out high punative damages awards), easy class action lawsuit certs, and busy federal court docket (albeit a bit less busy in recent years due to new Federal laws addressing "venue shopping" by ambitious and enterprising attorneys). Mississipi produces lawyers and lawsuits, but not much else; that is why no sane national or international company has any presence whatsoever in the state. Mississipi might as well hang a big notice out below each of the "Welcome to Mississipi" signs on the state lines that reads "but take your business elsewhere".

    17. Re:thus ensuring by penix1 · · Score: 1

      This has nothing to do with FOSS. It has to do with interstate commerce which the states are hindering. It is political pressure that got this passed and nothing but political pressure will undo it. Either a business will do something like this or they will comply with the law. Not complying is not an option since they can be hauled into court and if they don't show up, they get the default judgment. Which is worse, death by a thousand cuts or pointing pissed off people at their legislatures?

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    18. Re:thus ensuring by demonlapin · · Score: 1

      unsophisticated rural jurors

      No, they're quite sophisticated; they've realized that if enough lawsuits are filed in one low-population county, they'll eventually be one of the people "harmed" by some multinational. And they'll get their cut.

      no sane national or international company has any presence whatsoever

      Not true; Nissan and Toyota come to mind. They just paid off the right people. Essentially, they were granted huge tax breaks in return for funneling a large portion of the money saved to certain... interests. Like the trial lawyers.

    19. Re:thus ensuring by Talderas · · Score: 1

      You got it wrong. People who live in Nebraska don't exist. Have you ever met someone from Nebraska who wasn't in the military? I haven't. Nebraska is nothing but a big military installation.

      --
      "Lack of speed can be overcome. In the worst case by patience." --Znork
    20. Re:thus ensuring by Attila+Dimedici · · Score: 2, Interesting

      It just means that all of these businesses will move to a state that does not have such a law. If you do not have a physical presence in a particular state, said state cannot require you to collect sales tax (read this bill, it also recognizes this limit). The problem with this tax is that it encourages businesses to locate in another state. It will not generate as much revenue as the legislators anticipate, unless they spend a significant amount of money on enforcement. Even then I suspect that the result will just be lots of people being penalized for not declaring this on their own, not actual compliance.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    21. Re:thus ensuring by Attila+Dimedici · · Score: 1

      Actually, hard goods sold by sellers online are taxed. However, a state cannot require a business that does not have a physical presence in said state to collect the tax, so the individual is required by law to report any such purchases that they make and pay the tax directly to the state. Of course very few people do that.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    22. Re:thus ensuring by Ihmhi · · Score: 1

      If there were 49 states with this law, most of these businesses would move to the 1 state smart enough not to have it.

      One state's gain in consumer taxes is another's gain in business taxes, jobs, and great benefit to the local economy.

    23. Re:thus ensuring by Greyfox · · Score: 1
      Couldn't tell you having never driven through Nebraska. I've driven through Mississippi and between that, having never met anyone on the net who claimed to be from there and the fact that they're one of three states worse at everything than Alabama leads me to believe that the state is not much more than a stretch of interstate that you maintain the speed limit through because the one thing you CAN find in Mississippi are very well equipped state patrol cars.

      Now I have driven through Kansas and had to go off the interstate to find diesel about halfway through it one time. That was like going in to the Twilight Zone, let me tell you. A half-mile by half-mile square of buildings in the middle of nowhere filled with people who just stare at people they don't know. So I can say for sure that people live there, and that some subset of those people are somewhat creepy.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    24. Re:thus ensuring by Anonymous Coward · · Score: 0

      Once those states stop having sales from Internet based sources, they'll change their tune.

      The voters will just get mad at the companies for not selling to them. They are too stupid to get mad at their legislators.

      The states aren't seeing any revenue either way, why would they care?

    25. Re:thus ensuring by ebunga · · Score: 1

      Mississippi was the first state to have every classroom wired for internet access.

    26. Re:thus ensuring by MBGMorden · · Score: 1

      Do you honestly think that Joe Public is going to go through the trouble of downloading an unusable file and running it through a CONVERTER just to avoid a 4-5% tax? Understand: people will pay for convenience. This is destroying that convenience. Even when Amazon's MP3 service had no DRM (superior product), and was usually about 10% lower in cost (superior price) compared to iTunes, Apple was still kicking their butt because the iTunes app was more integrated, easier to use, and synced to iPods much easier.

      My guess is that any store that made their customers jump through hoops to avoid this tax will quickly find themselves loosing customers to better places that simply comply with the law.

      I do question about sites that are essentially subscription "buffets" though. As in, pay monthly and download whatever you want. Do they tax the subscription fee (essentially flat rate tax), or per song (which would totally kill the entire subscription model)?

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    27. Re:thus ensuring by Anonymous Coward · · Score: 0

      Hi, sorry I'm so late to this discussion.

      I had to walk over 100 miles down a dusty road from my home to Tennessee, where I paid a kindly gentleman to record my words into this magic box.

      If only I had some of those hard foot coverings I see people wearing around here...

      -Mississippi redneck

    28. Re:thus ensuring by Anonymous Coward · · Score: 0

      OK, I know this is a joke posting, but just so you know, I'm from Mississippi myself. I'm working now as a Sr. Software Engineer with roughly 12 years experience in the field. I got my B.S. in Computer Science and my first five years work experience in the Jackson area.

      There is a (smallish) tech industry in Mississippi (http://www.technologyalliance.ms). It's not as big now as it was some years ago (before WorldCom collapsed and the dot-com bubble killed off a lot of the startups) but it's still there.

      To be fair, I live in Austin, TX now. I remember my last job in Mississippi: I could open the blinds on my office window and look out at the cows in the pasture next to our building. :)

  2. Tax Evasion? by veganboyjosh · · Score: 4, Insightful

    I wonder how this will play out with regards to illegal downloads? If one gets caught/charged/accused of transferring "digital goods" to which they don't own the copyright to, are they then responsible for the taxes those goods would have generated had they been legit?
    Reminds me of Al Capone's downfall...

    1. Re:Tax Evasion? by geekoid · · Score: 4, Insightful

      tax fraud, that's how they will nail downloaders.

      Ingenious.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Tax Evasion? by nurb432 · · Score: 0, Redundant

      That is how they got Capone.

      --
      ---- Booth was a patriot ----
    3. Re:Tax Evasion? by Anonymous Coward · · Score: 4, Funny

      tax fraud, that's how they will nail downloaders.

      Ingenious.

      That is how they got Capone.

      They got him for tax evasion...that's how they will nail downloaders. It's genius!

      -- Brought to you by the Redundancy Department of Redundancy

    4. Re:Tax Evasion? by Anonymous Coward · · Score: 0

      That is how they got Capone.

      your redundancy is redundant

    5. Re:Tax Evasion? by Anonymous Coward · · Score: 0

      I wonder how this will play out with regards to illegal downloads? If one gets caught/charged/accused of transferring "digital goods" to which they don't own the copyright to, are they then responsible for the taxes those goods would have generated had they been legit?

      No. There was no sale or transfer of ownership, so no sales tax is payable.

      Now if you started selling your illegally downloaded material, you would have to include the revenue from the sales on your income tax.

    6. Re:Tax Evasion? by Anonymous Coward · · Score: 0

      If you listen closely, you can hear Al Capone laughing.

    7. Re:Tax Evasion? by Anonymous Coward · · Score: 1, Insightful

      I'm not sure it's quite the same thing. Al Capone was prosecuted for failing to pay income tax. The source of income was treated as a separate matter than the fact that the tax wasn't paid.

      Serious question: Is there precedent for prosecuting for failing to pay sales tax on stolen physical goods? If so, how is the sales price determined? Since the product was acquired at no cost, wasn't the appropriate tax paid on the cost (nothing) paid by the consumer (thief)?

    8. Re:Tax Evasion? by larry+bagina · · Score: 2, Insightful

      Let's say you go on wheel of fortune and win a car. You pay taxes on it, as if it were income. Not only that, but you pay taxes on the MSRP, not the discounted price you would have paid, had you actually bought it.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    9. Re:Tax Evasion? by Anonymous Coward · · Score: 0

      -- Brought to you by the Redundancy Department of Redundancy

      There is a city nearby called Culver City. The word "City" is part of the city's name. They have a building where outside there is a huge ass stone sign that reads, "City of Culver City" department of something or other. The City of Culver City. And you thought you were just joking. Government. Because stupid people need jobs, too.

    10. Re:Tax Evasion? by SL+Baur · · Score: 3, Informative

      Is there precedent for prosecuting for failing to pay sales tax on stolen physical goods?

      It's right there in black and white and never been repealed.

      (From the 2008 US IRS guidelines http://www.irs.gov/publications/p17/ch12.html )

      Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

    11. Re:Tax Evasion? by legirons · · Score: 1

      I wonder how this will play out with regards to illegal downloads? If one gets caught/charged/accused of transferring "digital goods" to which they don't own the copyright to

      When reading someone's email is charged as unlawful electronic transmission of material outside Tennessee, it seems there is no limit to how far laws can be stretched to fit an action that someone really wishes to prosecute.

    12. Re:Tax Evasion? by internerdj · · Score: 1

      But are you evading taxes if you download Open Office rather than purchasing MS Office?

    13. Re:Tax Evasion? by ElmoGonzo · · Score: 1

      Mississippi has computers? Who knew?

    14. Re:Tax Evasion? by jdcope · · Score: 1

      But isnt that IRS code is based on if someone was making taxable income doing it? I could only see that as relevant if I was selling pirated software/movies/music. If I am downloading for myself, Im not generating income that would normally be taxed.

    15. Re:Tax Evasion? by MBGMorden · · Score: 1

      You missed the key point of the OP. Al Capone was prosecuted under the stipulation you quoted because that's INCOME tax. The OP specially asked about law relating to SALES tax.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    16. Re:Tax Evasion? by Anonymous Coward · · Score: 0

      I don't know about in our current more fascist USA, but the USA of the 1990s... at least one person where I went to high school with filled out taxes. Job: "Drug dealer". All drug income. The IRS is not allowed to share tax info with ANYBODY, so he knew he was safe as long as the tax info was accurate. The IRS still isn't *allowed* to but I don't know if this would stop them now.

  3. Inevitable.... by IamGarageGuy+2 · · Score: 1

    I don't believe that any reasonable person believed that online sales would not eventually be taxed. This government after all - thier job is to find things to tax after all. I assume it took this long because of the ineptitude of beuracracy.

    --
    Stay tuned for new sig...
    1. Re:Inevitable.... by geekoid · · Score: 2, Insightful

      There Job is to find way to pay for services that people demand.

      No one taxes to just tax. It's hard enough to tell people you need to tax for the things they want!

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Inevitable.... by Chabo · · Score: 2, Interesting

      No one taxes to just tax.

      Obviously you don't live in California.

      --
      Convert FLACs to a portable format with FlacSquisher
    3. Re:Inevitable.... by geekoid · · Score: 1, Insightful

      I lived in CA long enough to remember when they had an excellent schools system, both K-12 and community college. Watched it all go to hell when they passed prop 13. Limiting taxes.
      I left in 2000.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    4. Re:Inevitable.... by Chabo · · Score: 5, Interesting

      I recently came to California from New Hampshire, which introduced a property tax several years ago. I wasn't around for Prop. 13, but after doing a bit of reading, I'm glad it passed. If someone owns land, and has little income, why should they be punished for that?

      I know a man who works as a teacher in New Hampshire who owns over 100 acres of land. The land's been in his family for at least two generations. The property tax was passed, and he nearly went bankrupt paying the taxes on the land because the land value assessments were artificially inflated by the housing market bubble.

      I don't like heavy taxation in any form, but property taxes are disproportionately unfair to anyone who owns land and doesn't have a high income.

      --
      Convert FLACs to a portable format with FlacSquisher
    5. Re:Inevitable.... by Anonymous Coward · · Score: 2, Insightful

      No, their job is to preserve individual liberty and to stay within the boundaries set for them by the Constitution. The US government is failing terribly at both.

    6. Re:Inevitable.... by CrimsonAvenger · · Score: 2, Interesting

      No one taxes to just tax. It's hard enough to tell people you need to tax for the things they want!

      I wish I lived in your world. Here in the Real World (tm), governments tax anything they can get away with taxing.

      After all, if you have revenue, you'll find a way to spend it....

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    7. Re:Inevitable.... by icebike · · Score: 1

      Typically states do not tax sales to citizens of other states or tax good purchased from other states because 1) its bad for business, driving mail-order companies out of state, and 2) The murky provisions of Article 1 Sections 9 and 10 have, in the past been seen as making such a tax illegal.

      Therefore, most states will only tax transactions where the seller has a presence in the state.

      --
      Sig Battery depleted. Reverting to safe mode.
    8. Re:Inevitable.... by Obfuscant · · Score: 2, Insightful
      There Job is to find way to pay for services that people demand.

      No, their job is to provide the services they are supposed to be providing. They have gone so far afield in the last few decades that many people believe that "I want" is justification for the state to do something. "I want a place to live", and politicians jump to help. "I want a free college education". "I want a museum honoring left-handed butterfly collectors."

      It's hard enough to tell people you need to tax for the things they want!

      It's supposed to be hard to say that, and they SHOULD be saying that, but they don't. They pretend that it's "free". "Free" education. "Free" healthcare. "Free" housing. Don't ever expect to hear a politician that is in favor of spending on something to call it "taxpayer-funded" service. It's always "free".

    9. Re:Inevitable.... by Glith · · Score: 1

      He must be a very old teacher. NH passed the world's first property tax. Back in 1742. Notably it's also the only major tax the state has.

    10. Re:Inevitable.... by spood · · Score: 1

      Land is a finite commodity. If everyone got the same amount, there would only be about 5 acres of land available per person today.

      It might not be fair to the teacher to have to pay high taxes on the land, but it's not fair to society to let him keep it for no/low cost when it might be put to better, more productive use for society by someone else.

      If he can't afford it, let him sell it to someone who can. If there's no incentive for people to make productive use of capital, the economy stagnates.

      --
      ---- Just another spud server.
    11. Re:Inevitable.... by Chabo · · Score: 2, Interesting

      I'm fairly young, but I thought that the state-wide property tax was only enacted after the Claremont Decision. This seems to be confirmed by the fourth all-caps paragraph of this story:

      http://www.nhpr.org/node/4290

      Is this incorrect? I thought that the NH tax system before the Claremont Decision involved only direct taxation at the town level.

      --
      Convert FLACs to a portable format with FlacSquisher
    12. Re:Inevitable.... by Anonymous Coward · · Score: 2, Insightful

      I think the next tax will be computer taxes... for every computer you own you will be taxed appropriately. Doesn't matter if the computer is a TI-2 or the latest Dell super computer. To make it easy a computer will be defined by a cpu, for every cpu in your house you're taxed...

      If you can't afford to have a quad core computer, microwave, refrigerator, tv, remote control, digital cable box, digital thermostat, hot water heater, alarm clock, cell phone, LAN telephone, home router, home entertainment center, ps3 (ooo x8), xbox 360 (x3), I could probably go for awhile.

      I hope this puts into light that property should not be taxed, because guess what, property is property regardless of land or home electronics.

    13. Re:Inevitable.... by geekoid · · Score: 1

      "someone owns land, and has little income, why should they be punished for that?"

      Umm, since this hadn't happened before the Prop, why would it suddenly start happening without the prop?
      Yeah people where all 'Don't throw old ladies out in the street' even though there had never been a recorded incident of that happening.
      If I had know the term then, I would have called it FUD.

      In every state I have looked into it, taxes are based on the accessed value from the county, not on the market conditions. In CA my condo was assessed at 150K but sold for 182K.
      And that was in Huntington Beach.
      In two years, the scommunity colleges went from anyonwe with a part time min wage incomes could take course to the point where the poor couldn't afford it.

      Add to that there where other proposal for things like Freezing taxes for people whoa are retired.

      The worst thing was they never stopped to thing how they where going to continue to pay for the services.

      Why should tax payers support people who can't afford to pay there property tax? Please avoid appeal to emotion.

      If I can't afford my property tax now, will you carry me?

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    14. Re:Inevitable.... by Anonymous Coward · · Score: 0

      While i can't say i was alive to see the pre-prop13, since it was passed in 1978, I have to say that our school wasn't even close to underfunded..they just didn't know how to spend. Full tearout and replacement of sod every year, campus wide fiber optic network, repainting of the buildings, new fencing, re-building the sports arenas, etc... and this was a yearly thing, they'd build one year, tear it down the next and rebuild, the sports fields and the gym were renovated pretty much every summer, hell, our gym was probably worth more than the entire rest of the school combined. I guess our 60 year old science textbooks held together with tape and containing inaccurate information, or our history textbooks that don't go past 1975 are weren't very important. We won every sporting competition in our area though, i guess that's all that matters....

    15. Re:Inevitable.... by LaskoVortex · · Score: 1

      It might not be fair to the teacher to have to pay high taxes on the land, but it's not fair to society to let him keep it for no/low cost when it might be put to better, more productive use for society by someone else. If he can't afford it, let him sell it to someone who can. If there's no incentive for people to make productive use of capital, the economy stagnates.

      Brilliant use of capitalist arguments to support socialism. Just curious--which are you?

      --
      Just callin' it like I see it.
    16. Re:Inevitable.... by Anonymous Coward · · Score: 0

      1978 - Wasn't that about the same time California became Mexifornia?
      Limiting taxes isn't a bad thing, but allowing millions of people to overwhelm a region sure is.

    17. Re:Inevitable.... by eclectro · · Score: 1

      Actually most property taxes goes to pay for schools to educate children. Nobody believes in socialism until it is possible to get someone else to pay for your own bills.

      --
      Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
    18. Re:Inevitable.... by jabithew · · Score: 1

      Why should tax payers support people who can't afford to pay there property tax?

      Circular reasoning.

      --
      All intents and purposes. Not intensive purposes.
    19. Re:Inevitable.... by Buelldozer · · Score: 4, Insightful

      Sorry, I know this is off topic but I can't let it pass without comment.

      So you REALLY think that it was Prop 13 that sank California?

      Why is it always the income side of Government that is deficient? How about examining the expense structure of the state and how it changed.

      Somehow more tax money NEVER solves the revenue problem faced by Government. NEVER. NOT ONE TIME.

    20. Re:Inevitable.... by Buelldozer · · Score: 1

      :blink::blink:

      So, just where do you think the county's assessed value numbers come from? Thin air? The Assessor's magic 8 ball? Roll 5d6?

      The ignorance in your statement is staggering.

      The county's assessed value is based almost exclusively on market value!

    21. Re:Inevitable.... by Chabo · · Score: 2, Interesting

      Actually, one of the biggest reasons I don't like New Hampshire's property tax is that for the last few years, the assessors were inflating the assessed value. Thing is, the more they say your house/land is worth, the more you're taxed. It was in their best interest to say that your house was worth a fortune! My dad had to appeal on our house to get another assessor to come and give a more reasonable figure.

      --
      Convert FLACs to a portable format with FlacSquisher
    22. Re:Inevitable.... by shutdown+-p+now · · Score: 2, Insightful

      Brilliant use of capitalist arguments to support socialism. Just curious--which are you?

      Probably a pragmatist. People who are not willing to restrict themselves by purely ideological arguments tend to be that.

    23. Re:Inevitable.... by Peyna · · Score: 1

      NH has had a property tax for a long time. In fact, the property tax in NH pretty much accounts for almost the entire state budget. The problem is that owning valuable property does not necessary equate to ability to pay taxes. Thus, you're anecdote bears some relevance to NH's tax system, but not because the tax is new, rather, because your friend inherited valuable land, but has a limited income and therefore cannot pay the tax.

      --
      What?
    24. Re:Inevitable.... by mikael · · Score: 1

      The problems were caused by Market Value Assessments. Retirees bought a small house, paid their property taxes, no problem. The next door neighbor decides he wants to cut down all the trees, and turn the back lot into into rental units to make money. OK, they can live with that. At the next MVA, their property tax quadruples because the city figures out that if their neighbors property is now bringing in sixteen times as much property tax as it used to, so should theirs (MVA just averages the property tax of the house and the local neighbors).

      And they were even madder when someone built a multi-story condo unit right next door, blocking off their sunlight, invading their privacy and rocketing up their property tax just for the privilege.
      Plus they were getting pissed off about other people spending all their pension earnings on education programmes.

      --
      Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
    25. Re:Inevitable.... by mikael · · Score: 2, Informative

      http://e-city.ca/events/event_details.php?id=143

      Retired homeowners see their assessments skyrocketing because others are buying and selling, putting their ability to age in place at risk.

      --
      Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
    26. Re:Inevitable.... by davidsyes · · Score: 0, Offtopic

      Your response is yet ANOTHER testimony to the brokenness of the comment/score-comment system here. When a comment is rated, and then someone attaches a comment to it, if they can cite evidence contrary to an insightful or other "elevated" or "lowered" comment, then the commentator should be identified as the one affecting someone's score/rating. Moreover, the cited reference information could be verified. It's not the sort of thing for fast "discourse", but it would help clean up this mess where clearly faulty comments elevated remain elevated, and where blatant retaliation is used to drive down someone's score gets left uncorrected.

      DAMN! What is wront with the slash sytem.

      --
      Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
    27. Re:Inevitable.... by Anonymous Coward · · Score: 0

      It might not be fair to the teacher to have to pay high taxes on the land, but it's not fair to society to let him keep it for no/low cost when it might be put to better, more productive use for society by someone else.

      You're a whore. This bullshit about "highest and best use" (determined solely by one who can make a profit on the transaction) is just a fucking canard to transfer the property of the less well off to the wealthy. It's most recent and most poisonous incarnation was the supreme court's decision that it was OK to seize someone's private property and hand it over, not to a government entity for a school or freeway, but to a private developer who wanted the property to build a mall. The craven, pusillanimous black-robed sons of bitches went for it. Within a week or so, some bastard in Santa Cruz, CA, went to court for the same thing. The property next to his business had burned down, leaving a fenced-in pit. The prick used the same bullshit argument. In both cases, the "public good" served was higher taxes for the other man's property.

      By that standard, the c in CA, should be forced to sell my (pre-Proposition-13) property to anyone who walks by, solely to trigger a post-Proposition-13 reassessment, thereby helping toity to fill their coffers. Fuck that shit and fuck you in the ass.

    28. Re:Inevitable.... by asicsolutions · · Score: 2, Funny

      Sorry, I call BS coming from NH. There has been a property tax here for 20 years (as long as I've been here) at least. The difference is that the property tax and business taxes are the only taxes. What this means is that towns with no business have much higher property taxes than those that don't. But... I've got lower property taxes on a 1 acre lot near a lake in NH than people I know on a postage stamp in Taxachusetts. And, get this, no state income tax, and really hold onto you hats, no sales tax. Also, guns are very easy to get, so.... GET OFF MY LAWN!

    29. Re:Inevitable.... by Anonymous Coward · · Score: 0

      I wish I lived in your world. Here in the Real World (tm), governments tax anything they can get away with taxing.

      Damned right --and if they can't tax something, they'll "fee" it.

      A friend recently got a speeding ticket, good for a $100 fine. By the time the law had finished adding on "processing fees", making him pay for and attend some bullshit "safe driving sessions" and finally tacking on some "court supervision fees" for all of the above, the bill had ballooned to nearly $250.

      They're just a bunch of duplicitous sons of bitches who will call their highway robbery anything but a "tax", just to avois a 2/3 vote of the politicians.

    30. Re:Inevitable.... by shaper · · Score: 5, Insightful

      If there's no incentive for people to make productive use of capital, the economy stagnates.

      The incentive for people to make productive use of capital is the reward / gain they get from doing so. I'm no rabid objectivist or "big-L" libertarian, but that's just fundamental economics.

      it's not fair to society to let him keep it for no/low cost when it might be put to better, more productive use for society by someone else.

      Spoken like a true communist. Other than life itself, there is no more fundamental right than the right to property. From your comments I get the impression that you are not a property owner or you would not be so cavalier in taxing it away.

      Reallocating property from one person to another based on "productive use of capital" for the benefit of society over the rights of the individual is always going to be a negative incentive to productivity. Why acquire property if it can just be taken away (or taxed away) at the whim of some powerful individual or group? Some property taxes are probably inevitable to pay for necessary social services (fire, police, etc.) but those taxes should never be used to penalize for some imagined lack of relative "productivity".

      Unfortunately, there are others who agree with your line of reasoning, most notably some US Supreme Court justices. See Kelo v. City of New London for a real world example of the results.

    31. Re:Inevitable.... by Anonymous Coward · · Score: 1, Insightful

      So someone who doesn't make a lot of money, but inherits land (which was cheap in the past) should be forced into bankruptcy because a property tax they hadn't planned for was suddenly introduced?

      You go on to compare the assessment policies on a condo in CA with a large amount of land in CT without knowing how their policies differ.

      Try again.

    32. Re:Inevitable.... by larry+bagina · · Score: 1

      On the prettier side of the Connecticut River, they have a system called "current use" to accommodate those situations. If you own a [30+ acre?] parcel of land and agree to keep it undeveloped (farming is ok), you pay a significantly smaller tax rate.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    33. Re:Inevitable.... by Temkin · · Score: 3, Interesting

      Sorry, I know this is off topic but I can't let it pass without comment.

      So you REALLY think that it was Prop 13 that sank California?

      Well.... The thing about prop 13... It set up a conflict of interest between the cities and counties and their populace. After prop 13, the cities and counties were opposed to new housing development. Housing demands services that is not covered by the revenue generated. As time goes by, the cities and counties develop complex ways of hiding this problem by implementing all manner of permit fees and revenue enhancements. For example in 2000, in one small east SF Bay area city, in order to build a house, it cost in excess of $70,000 for the required building permits. That means that every single house that has a valid occupancy permit, no matter what condition, has a built in base price of $70,000.

      Artificial scarceness drives up prices. When a house changes hands, it can be reassessed under prop 13. So churn is good for cities.

      Finally... The banks get to collect 5 - 6 - 7% interest on all this property tax avoidance chicanery. Lather rinse repeat for 30+ years...

      We're reading about the results in the paper every day. The house of cards finally folded. Now some of the gross abuses of the state expense structure are coming into view. My favorite... The police and correctional officers union. You do your 20 years, and get to retire with full benefits. So you can retire at roughly 40 years old, and have full pay and benefits for life while you go double dip as a security consultant, etc... Same deal with the firefighter unions.

      The problem is... It's easy enough to say "yea, that's wrong. They shouldn't sign those contracts." or "they should repeal prop 13", but they're entrenched. If you benefit from them, you support them. My parents love prop 13. And why shouldn't they? They're paying property taxes last reassessed in 1978. Their son bought a cardboard box of a house, payed 11% income tax, 5% of his income in property tax, 9.25% sales tax, 1% vehicle property tax, and countless fees... and double that again in inflated prices so others could do the same... and got fed up sold his house and transferred his job out of state. They still don't understand why.

    34. Re:Inevitable.... by cayenne8 · · Score: 3, Insightful
      "It might not be fair to the teacher to have to pay high taxes on the land, but it's not fair to society to let him keep it for no/low cost when it might be put to better, more productive use for society by someone else. If he can't afford it, let him sell it to someone who can. If there's no incentive for people to make productive use of capital, the economy stagnates."

      So..you're saying you are against the idea that people own things like land/property. That they ONLY 'rent' it from the government (tax==rent)

      Boy, now that is a big change from how things in this country started....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    35. Re:Inevitable.... by cayenne8 · · Score: 1
      "Actually most property taxes goes to pay for schools to educate children. Nobody believes in socialism until it is possible to get someone else to pay for your own bills."

      Precisely, if things were fair...people that HAD kids, would be taxed more to pay for the extra drain on public resources they bring about. But, we do the opposite, and give them tax breaks....essentially making those people who have less or no kids, subsidize the results of them fucking without protection.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    36. Re:Inevitable.... by scamper_22 · · Score: 1

      Taxes on existence should be banned.

      Property tax is the worst kind of tax. It is tax just to have shelter.
      Quite frankly, you should not have to pay property tax on any land that is in use. Imagine that... business would not leave city centers as they would not need to pay property taxes. Suburban sprawl would be reduced too. You should only pay it on land not in use, so that you don't horde land for no reason.

      But that's my fantasy world. New Hampshire traded freedom for death a long time ago :P

    37. Re:Inevitable.... by Falconhell · · Score: 1

      Interesting. In Australia land tax only applies to properties other than a persons home, so rental houses and business are the only ones who pay.

      Seems a fairer system.

      Council rates do apply to all however and are based on valuation.

    38. Re:Inevitable.... by LaskoVortex · · Score: 1

      Probably a pragmatist.

      What's pragmatic is a matter of perspective, and therein lies the ideology.

      --
      Just callin' it like I see it.
    39. Re:Inevitable.... by Alex+Zepeda · · Score: 1

      Oh please. Props 8 & 13 didn't save homeowners. Prop 13 merely encourages aristocracy.

      They penalize people who buy new houses. They don't prevent raising the taxes, they merely created a whole level of bureaucracy (a la Mello-Roos districts) to deal with the fees (nee taxes).

      Even better, Prop. 13 applies to commercial property as well. This means that corporations who simply shuffle officers around a bit get sweet, sweet tax breaks... and your local assessor can't do anything about it.

      The example you've given is a weak example for Prop. 13, and a much better example for why the position of assessor should be an elected one.

      --
      The revolution will be mocked
    40. Re:Inevitable.... by triffid_98 · · Score: 1
      I think the major problem with it is that it doesn't exclude corporations. They own lots of real estate and they never die. Therefore California loses absurd amounts of tax revenue on any land they happen to own.

      As for whether people who are lucky enough to own land that has vastly appreciated should pay taxes on it, well...It's nice if you're in the AARP, the rest of us commoners will continue to rent from you and grumble.

      I recently came to California from New Hampshire, which introduced a property tax several years ago. I wasn't around for Prop. 13, but after doing a bit of reading, I'm glad it passed. If someone owns land, and has little income, why should they be punished for that?

    41. Re:Inevitable.... by TheLink · · Score: 1

      You do have a point.

      But if you solely view things that way, you might as well encourage nonproductive members of society die ASAP.

      Taxing some retiree so that he/she ends up with no place to live and/or insufficient nutrition/heating, is one way to do that I suppose.

      If the purpose of society was just to be productive, I think that's not worth it, we might as well all quit now.

      We might laugh at Bhutan for having a Gross National Happiness index, but it should be a good reminder that GNP should not be all there is to life.

      I think we need more Love, Grace and Mercy in this world.

      --
    42. Re:Inevitable.... by Anonymous Coward · · Score: 0

      Sorry, I know this is off topic but I can't let it pass without comment.

      So you REALLY think that it was Prop 13 that sank California?

      Of course it didn't. More recent property buyers use that as an example of how "unfair" life is.

      Funny, one of the issues in the Prop 13 fight was that it was a scam, not to save homeowner's taxes from constantly-approved school bonds as advertised, but to gradually shift the tax burden from businesses to homeowners. The theory was that, in a mobile society, people would turn houses over when they moved, triggering the higher post-Prop-13 tax assessments. Meanwhile businesses were presumed to rarely sell their property, leaving them sheltered under the lower pre-Prop-13 tax structure.

      You can be damned sure I won't be moving any time soon out of my pre-Prop-13 house.

      Meanwhile businesses are constantly trying to find new ways to "non-sell" their property, while still realizing the profits of a sale. Some years back, a well-known railroad and a well-known life insurance company jointly developed a piece of property. They eventually wanted to transfer title to someone else while allegedly keeping the property for themselves to avoid the reassessment. The city assessor threw cold water on their proposition when he declared the transaction to be an actual change of title and reassessed them way up.n

    43. Re:Inevitable.... by Anonymous Coward · · Score: 0

      http://e-city.ca/events/event_details.php?id=143

      Retired homeowners see their assessments skyrocketing because others are buying and selling, putting their ability to age in place at risk.

      A tax on hoarding land? That's almost as weird as a tax on hoarding money

    44. Re:Inevitable.... by who+knows+my+name · · Score: 1

      Other than life itself, there is no more fundamental right than the right to property.

      Spoken like a true capitalist...

      But seriously, people like to justify property by making it some natural right. But that is inherently hypocritical; we don't give animals property rights to their habitats. Marx wasn't too far off the mark with 'all property is theft'.

      --
      Nothing to see here.
    45. Re:Inevitable.... by Anonymous Coward · · Score: 0

      you're anecdote bears some relevance to NH's tax system

      I think you mean "your".

    46. Re:Inevitable.... by Anonymous Coward · · Score: 0

      Somehow more tax money NEVER solves the revenue problem faced by Government

      That's because the end goal of all government IS revenue. Government is a business, and the people in this business are no different than the people running private enterprise: the goal is money. I can understand why this is so hard to realize (or admit) for the vast majority of people who "believe" in the system.

      But it's easier to understand when you observe how governments -- all governments -- only expand in overall revenue throughout their lifetimes, never reduce. This is the key to the mystery. No government in history -- democracy or otherwise -- has ever significantly, permanently, and willingly reduced its overall level of revenue! There can be only two logical reasons for this. Either it's literally impossible for government to have enough revenue, or (more likely), revenue is the objective itself.

    47. Re:Inevitable.... by Anonymous Coward · · Score: 1, Interesting

      Reallocating property from one person to another based on "productive use of capital" for the benefit of society over the rights of the individual is always going to be a negative incentive to productivity.

      The classic socialist rebuttal would be that you don't reallocate the property to another PERSON, you reallocate it to the state, which then shares it with everyone based on who can make the best use of it.

      Nice in theory... fails in practice. Heads of state tend to engage in cronyism and pet projects simply because it is human nature to do so.

      Insofar as property taxes being inevitable for public services... why not a service tax? I'd like the fire department to stop my apartment from burning down even though I don't own it.

    48. Re:Inevitable.... by Ded+Bob · · Score: 1

      Precisely, if things were fair...people that HAD kids, would be taxed more to pay for the extra drain on public resources they bring about. But, we do the opposite, and give them tax breaks....essentially making those people who have less or no kids, subsidize the results of them fucking without protection.

      Actually, the government is bribing us to have children, so it will have more people to tax later. Ingenious! :)

    49. Re:Inevitable.... by Ihmhi · · Score: 1

      Perhaps he should have sold a few dozen acres and lived within his means, then, instead of trying to hold onto something he can no longer afford.

      If gasoline is at $5 a gallon and you're going broke driving your SUV, you sell your SUV and buy a more fuel-efficient car.

    50. Re:Inevitable.... by NeoSkandranon · · Score: 1

      Yep. Great way for a county/state to brag about not increasing tax RATE while still increasing income.

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    51. Re:Inevitable.... by NewWorldDan · · Score: 1

      As long as people keep demanding services from government, government will have to find a way to pay for them. Have you ever been to a town-hall type meeting? They're filled with people looking for a handout. Everyone has something different they want the government to do for them. Fix this, fix that. It's always something specific that needs to be addressed and hard to say no to. And so taxes need to be raised to pay for all this crap and they try to raise them while pissing off the fewest number of people in the process.

    52. Re:Inevitable.... by Chabo · · Score: 1

      Except that he didn't cite his information. As I said in my reply to him, the only things I can find on Google suggest that the state-wide property tax didn't exist until the "Claremont Decision", about 10 years ago. I can find evidence that NH enacted a property tax in 1742, but I can find no evidence suggesting that the 1742 tax exists today.

      --
      Convert FLACs to a portable format with FlacSquisher
    53. Re:Inevitable.... by ibbey · · Score: 1

      Spoken like a true communist. Other than life itself, there is no more fundamental right than the right to property.

      Spoken like a true Objectivist.

    54. Re:Inevitable.... by MBGMorden · · Score: 1

      There are some things to help out in some places with situations such as the teacher you mention. I'm not familiar with CA or NH law, but I do know about SC property tax law.

      Here, as long as you have remained the owner of the property (ie, haven't transferred it) from one reassessment to the next, your taxable land value is capped at a 15% increase in between reassessments (which happen about every 5 years). So even if there is a development boom in an area where the value inflates rapidly, you still don't get hit very hard as long as your land doesn't change hands (inheritance generally doesn't change this either - it has to be an ATI - Assessable Transfer of Interests, which has certain conditions which must be met).

      Also, often cases the people with lower income are often elderly, and the elderly can apply for various exemptions and the like to reduce or eliminate their tax bills.

      The bottom line though is that MOST local governments survive off of property taxes. Your local police/Sherrif's office, EMS, the local library, waste management, mapping services, and a host of other things. Revenue to pay for that property has to come from somewhere. Sure, you can say that property taxes unfairly hurt people with high property and low income, but one could make the reverse argument against income taxes: that they take an unfair sum from those with higher income. The bills have to get paid somehow.

      --
      "People who think they know everything are very annoying to those of us who do."-Mark Twain
    55. Re:Inevitable.... by roman_mir · · Score: 1

      So if I work and make some money, are they mine or do they not belong to me at all? If they are not mine, then I don't want to work, fuck that.

    56. Re:Inevitable.... by who+knows+my+name · · Score: 1

      So if I work and make some money, are they mine or do they not belong to me at all? If they are not mine, then I don't want to work, fuck that.

      I think a distinction can, and should, be made between 'property' we claim as natural ownership, and property we create. Inherited property, for instance, could easily be designated as the first type.

      --
      Nothing to see here.
    57. Re:Inevitable.... by roman_mir · · Score: 1

      I don't see how you can make any distinction. If someone starts a corporation and his kid joins the corporation, the father retires, the kid stays at the head of it. So who's is it?

      If you are born in a house of your parents and they eventually die, how can anyone make a case that the house is not also yours?

      However if you go down that path, then consider that the parents would simply have to make sure that all the items they own, are actually owned by an independent immortal entity and the kid would be written up as a co-owner.

      It is not easy to argue away inheritance rights, but it is even more difficult to take them away in practice. If one wants, (s)he will come up with a way to liquidate the estate and transfer the money. How about a salary to the kid in form of cost of all of the assets (for some obscure consultations or maybe performances), that will be hanging on the estate as a debt that will have to be disposed of upon death of the parent?

      It's just too easy to avoid this for the people who actually have something they can give as inheritance. Just selling all of the assets, opening an off-shore system of accounts (non-profit corps for example) and making the descendant a co-owner.

      ---

      also you say: property that WE create vs property that WE do not create. What about MARKET creating 'value', for example: you buy a house, the house grows in value, you sell a house. YOU didn't do anything really for the house price to go up. Are they money yours?

      etc.etc.etc.

    58. Re:Inevitable.... by who+knows+my+name · · Score: 1

      Lets be clear now, I do not advocate a completely communistic system; however I think some of the values can be easily implemented. In the case of inheriting a house, I think it is quite plain that the inheritor has done nothing above anyone else in society to 'deserve' the house. Now you quite rightly show that value can be transferred essentially as gifts before the estate is taxed. It is also very simple to tax all gifts (possibly above a combined total value, or whatever seems least bureaucratic), and this seems entirely morally equivalent. In most countries these systems do work most of the time in practice.

      Really, though, I think you have a deeper objection than practicalities. People tend to feel that somehow they deserve to inherit their parent's house/wealth. But for what? For being born to the right person? I think it really is a case of the wealthy trying to protect their wealth, whether they have inherited or earned it.

      You talk of the market like it is a real entity, but the market is just the sum of all transactions. If the house grows in value because of the market, then it is because certain transactions (i.e. people) have created property/wealth.

      --
      Nothing to see here.
    59. Re:Inevitable.... by roman_mir · · Score: 1

      Of-course I am against the practice, in 15 years I worked to acquire my properties. More interesting than that, I bought the first house for my parents, not the other way around.

      I will make sure that the money I make stay in my family, obviously, you may have objections to it, but I would rather see the money go up in flames than someone coming to me taking it away. I worked for it, so, absolutely seriously, I would sooner liquidate everything and burn the cash than give it away, it's my life, my time=my money. Which way I wish to do with it - dispose of it in a bone fire or give it to someone is entirely up to me.

      Of-course I will not have to burn it, I will use every possible last ounce of intellect I've got to not let it go to waste, but to make sure it serves my selfish purposes.

      You see, you are going against the desire of people who are actually earning the wealth, that's where I have moral objections with this.

    60. Re:Inevitable.... by who+knows+my+name · · Score: 1

      >

      You see, you are going against the desire of people who are actually earning the wealth, that's where I have moral objections with this.

      hmm, and remind me why a certain group of peoples desires are more worthy than others? And remember that those with wealth already have a disproportional amount of power whether they are good at creating things or just are lucky to inherit it. Of course we want to encourage people to create wealth (as this is usually beneficial to everyone); but removing wealth that is not earned should actually encourage this.

      --
      Nothing to see here.
    61. Re:Inevitable.... by roman_mir · · Score: 1

      Removing wealth is not useful even for the purposes that you are talking about.

      If you take money from someone and give it to someone else, nothing has changed in the total wealth production. It's just the people you gave money to now have fewer reasons to create wealth - now they have it. It's counter-productive to give wealth to anyone at all for no reason, they will not want to work : ) So the people who create wealth and ensure that it stays in the family actually do better for society:
            1. they create wealth
            2. they take burden of caring for their family off the rest of society

      Now, again, if the law is that inheritance is illegal, then simply put, only those with illegal mind-set (most people) will have inheritance. Money can be converted into something valuable, stored away and then, when the dust settles taken back from the cache. Nobody even has to know..

    62. Re:Inevitable.... by who+knows+my+name · · Score: 1

      3. they encourage their family to work less because they have no need to.

      --
      Nothing to see here.
    63. Re:Inevitable.... by roman_mir · · Score: 1

      Excellent, so at least someone has to work less, but they can buy stuff.

      However what happens when government comes over and takes the money? It's the money that is lost in the system, some number of bureaucrats are going to decide what to do with the money that could instead provide comfortable life for people, for who these money was intended in the first place.

      This is so funny, evolution itself shows that parents are working for the benefit of their own kids, you want to change that to mean that people should work for the benefit of some meaningless faceless society?

      Again, I'd rather burn my money in a fire.

    64. Re:Inevitable.... by who+knows+my+name · · Score: 1

      This is so funny, evolution itself shows that parents are working for the benefit of their own kids, you want to change that to mean that people should work for the benefit of some meaningless faceless society?

      precisely; natural != moral. http://en.wikipedia.org/wiki/Naturalistic_fallacy
      I would rather people worked to benefit each other than their biological imperative.

      --
      Nothing to see here.
    65. Re:Inevitable.... by roman_mir · · Score: 1

      I would rather people didn't try to change the nature of people, it ends badly.

    66. Re:Inevitable.... by shaper · · Score: 1

      Spoken like a true communist. Other than life itself, there is no more fundamental right than the right to property.

      Spoken like a true Objectivist.

      If I sounded that way, it was truly not intentional. Unlike objectivists, I don't try to build a huge immoral self-justification on top of first principles. I just wanted to recognize and point out something that has been obvious to any retard ever since Ug the caveman made a cool club and whacked the first guy who tried to take it away from him.

      Property rights, along with the right to defend one's self, family and property are fundamental, but they must also be tempered by moral consideration. It is the balance and tension between individual and social considerations that make for a well functioning society. Extremes to either side of the equation are unproductive and ultimately self-defeating.

    67. Re:Inevitable.... by ibbey · · Score: 1

      I just wanted to recognize and point out something that has been obvious to any retard ever since Ug the caveman made a cool club and whacked the first guy who tried to take it away from him.

      So I take it that, by your definition, every culture that didn't place property right paramount are retards? Does that apply to all the tribal culture that lived communally, the sort that existed peacefully for thousands of years before running into the white men who exterminated them to take their property? [Before you object, not all tribal cultures fit this definition.] What about countries like Sweden, Finland and Norway where capitalism is tempered by a liberal helping of socialism (and taxes to match), yet by most surveys have the happiest citizens in the world?

      Or how about the United States, where property rights get but the barest mention in the Constitution or the Bill of Rights (really none other than the right to be secure against illegal searches and seizures and the prohibition against quartering soldiers with the populace during times of peace), yet things like freedom of the press, freedom of religion and the prohibition against unjust prosecutions are explicitly mentioned? The Declaration of Independence cites three unalienable rights, none of which include property. It also cites numerous grievances against the King of England justifying our rebellion, only a few of which could even remotely be argued as violations of property rights. Clearly our founding fathers must have been retards for failing to spell out such a "fundamental" right.

      The reality is that property rights, while significant, are secondary to civil rights. Without personal freedoms, property rights are useless. All the wealth in the world doesn't benefit you if you're locked in the King's dungeon. And while the tyrant in a libertarian culture may not be a king, the natural conclusion of libertarianism state is totalitarianism just the same. Gradually the wealth will become more and more concentrated until it is in the hands of a very few people, and everyone else will be their de facto slaves. Without progressive taxation (AKA the dreaded "wealth redistribution"), there is no other possible conclusion (and remember, every society has some form of wealth redistribution. It's just that in libertarian societies, the wealth is always redistributed upwards).

      The argument that taxes somehow stifle people's desire to create new businesses (not made by you here, but made by many others while justifying similar viewpoints) is just absurd on it's face. Remember, every company in America today was started by people paying those same high taxes that the right likes to rail about. In fact most of the companies that are more than eight years old were founded when income taxes were much higher than they are today (the average top marginal tax rate since the income tax was established is 60 percent). Those high taxes didn't stop their founders from starting their companies, so the argument that we must cut taxes or they won't have incentive to reinvest is just silly.

      In fact, contrary to everything you've ever heard from the Republicans, higher income taxes actually create a greater incentive to reinvest, since you only pay income taxes when you take money out of a company. In practice, low taxes encourage people to take money out of their businesses and invest in such "economy-growing" things as luxury yachts and villas in France. They also encourage things like the outsourcing of jobs overseas, which is great for the shareholders of a company, but lousy for everyone else in the country. It's funny how much of this stuff is just obvious if you stop and think about it for a moment, yet people rarely bother to do so.

      (Sorry to be a bit rambly, but I'd appreciate if you'd at least skim the whole thing)

    68. Re:Inevitable.... by Anonymous Coward · · Score: 0

      Is that what you tell your idiot wife?

    69. Re:Inevitable.... by roman_mir · · Score: 1

      Aaaaaa, circletimescocksucker, is that you? He-he.

    70. Re:Inevitable.... by shaper · · Score: 1

      Does that apply to all the tribal culture that lived communally, the sort that existed peacefully for thousands of years ...

      No they didn't. There is no such mythical perfectly peaceful primitive tribal culture.

      ... before running into the white men who exterminated them to take their property?

      But if property rights are subordinate to the betterment of society, taking their property to bring them the benefits of modern society should be a good thing, right? Though I do admit the extermination thing is pretty bad.

      Without personal freedoms, property rights are useless.

      I wholeheartedly agree with that. I would also add that without individual property rights, personal freedoms are useless. As a trivial example, without property rights, what good would be freedom of the press if you had no right to own the press?

      Forgive me if I am misunderstanding you, but you seem to be arguing from extremes. There must be at least some individual property rights, if nothing else, to own the clothes you are wearing. That's what I mean when I say that they are fundamental. I do not believe that property rights are paramount over all other considerations. I believe that reasonable people can disagree over where to draw the line. I tend to fall more towards the individual side of the spectrum, you obviously tend towards the collectivist side. There's plenty of room in the middle to come to an agreement and live amicably.

    71. Re:Inevitable.... by ibbey · · Score: 1

      There is no such mythical perfectly peaceful primitive tribal culture.

      There were many such tribes. I'm not saying that they had no experience with war, or that they necessarily felt that their neighboring tribes had equal access to the land that they considered their homeland, but within their own tribe they had no concept of property (And believe it or not, many of them did live in relative peace with outsiders as well). There are several N. American Indian tribes that lived that way, as well as others from around the world. Watch the movie "The Gods Must Be Crazy" for a humorous examination of what happens when the concept of property is thrust into a society that has no concept of it. If property rights were something "that has been obvious to any retard ever since Ug the caveman made a cool club and whacked the first guy who tried to take it away from him", those tribes would obviously either be made up of retards, or or they never existed at all. Well, they did exist, and while I haven't seen their IQ tests, I doubt that they are all retards.

      There must be at least some individual property rights, if nothing else, to own the clothes you are wearing.

      I agree. In fact, virtually everyone in the US agrees. You would be very hard pressed to find a single sane person anywhere on the left who doesn't believe in property rights to some extent. Hell, even the Soviet Union had the concept of property rights. The question is just how far those rights extend. Where that line is drawn is by no means 'obvious to any retard'.

      It's possible that we agree more than we disagree, but there is one point where I think you're dead wrong. You've bought in to a bit of right-wing rhetoric that, like so much else on the right, takes a complicated issue and dumbs it down to a soundbite. You argue that "Other than life itself, there is no more fundamental right than the right to property", yet you now acknowledge that it's not quite that simple. When people lose site of the nuance in these issues, they will be taken advantage of by others who have not lost that perspective.

      Remember, whether we're talking global warming, drilling for oil, or just cutting income taxes, there are usually a few VERY rich people who stand to gain a whole lot more money by convincing the populous to go along with them (and those gains usually come at the expense of the property values of others, property rights be damned). If they can achieve that by oversimplifying a few issues, they are more than willing to do so.

    72. Re:Inevitable.... by Anonymous Coward · · Score: 0

      its yourdumbasswife... heheheheheheeeeeeee.

  4. So, are the retailers going to report these sales? by pecosdave · · Score: 1

    Or are they going to tax based on the honor system? What if I lived in Mississippi, but I traveled to Louisiana and downloaded music? What if I host a server in Colorado, pay for downloads from that server remotely, then sync my file system with that server?

    --
    The preceding post was not a Slashvertisement.
  5. Logical Move by nurb432 · · Score: 2, Insightful

    When the chips are down, tax people even more and damage the economy further.

    --
    ---- Booth was a patriot ----
    1. Re:Logical Move by geekoid · · Score: 2, Insightful

      Please show me where taxes on the citizens hurt the economy. I am not talking about corporate taxes; that is a different matter.

      They only way out of this is education, and education costs money. You need things for civilization, and that takes taxes. Increasing purchase, and decreasing income will not work.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Logical Move by copponex · · Score: 2, Informative

      When the mode of commerce changes , tax people in order to fund the government and pay for things like social services, roads, and other infrastructure.

      I get so tired of this argument. Government is not always bad, taxes are not always bad, and markets are not always the answer. The rest of the world has been dealing with these realities since the 1970s. If we don't wake up, our wealth isn't going to last into another generation.

      And finally, the "right" to get wealthy is less important than anything on the Bill of Rights. Liberty has nothing to do with owning a Hummer.

    3. Re:Logical Move by Anonymous Coward · · Score: 0

      Due to lower income and capital gains collections, states are trying to increase the collection of sales taxes and fees. Regressive taxes are socially harmful.

    4. Re:Logical Move by jabithew · · Score: 2, Interesting

      Please show me where taxes on the citizens hurt the economy.

      This is the second time I've posted this link today.

      --
      All intents and purposes. Not intensive purposes.
    5. Re:Logical Move by Buelldozer · · Score: 3, Funny

      Can liberty have something to do with *getting* a hummer? Please?

    6. Re:Logical Move by aztektum · · Score: 1

      If all your money goes into taxes you have less to put into the economy to buy $NEW_SHINY_THING

      --
      :: aztek ::
      No sig for you!!
    7. Re:Logical Move by Creepy · · Score: 1

      The problem is that most of the budgets were set with 3-5% unemployment and now there is 7-8% or more nationwide. That may not seem like much, but 4-5% less Income tax adds up to billions of dollars of budget shortfall for both state and federal budgets. Lawmakers then have the burden of either cutting spending or increasing taxes or both, and they also need money to provide stimulus for all those unemployed workers to try to restart the economy.

      So lawmakers are really trying to shift the tax burden onto less people to keep existing services, not intentionally trying to increase taxes with the economy down. We still need people to deliver the mail and keep the wait at the DMV to only 2 hours instead of 40.

    8. Re:Logical Move by Anonymous Coward · · Score: 0

      I wouldn't hold my breath waiting for Mississippi to do anything great regarding education...

    9. Re:Logical Move by Anonymous Coward · · Score: 0

      Oh wait, let me try:

      Taxes are what allow the US government to throw our money to lenders who didn't have enough sense not to loan money to people to stupid to live within their means.

    10. Re:Logical Move by drinkypoo · · Score: 1

      Please show me where taxes on the citizens hurt the economy.

      Citizens are starting to move into tent encampments and shanty towns, and you propose to raise taxes? People are having trouble paying their taxes already. Perhaps instead we could actually ask the rich to pay their tax burden; the top taxpayers tend to pay taxes on only about 50% of their income.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    11. Re:Logical Move by drinkypoo · · Score: 1

      And finally, the "right" to get wealthy is less important than anything on the Bill of Rights. Liberty has nothing to do with owning a Hummer.

      Who said anything about the right to get wealthy? The only reasons we need more tax revenues are a) pork and other handouts for the rich and b) the rich don't have to pay taxes on all of their income, while the rest of us do. The whole problem is that you do seem to have a legal right to have certain benefits to help you get wealthier once you are already wealthy, but you don't have any right to support yourself even if you work ten times harder than some fucker who never worked a day in his life. Call me a commie if you want, I could give a fuck.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    12. Re:Logical Move by Attila+Dimedici · · Score: 1

      The rest of the world has been dealing with these realities since the 1970s. If we don't wake up, our wealth isn't going to last into another generation.

      Over my lifetime, the U.S. economy has grown more and faster than any other economy industrialized economy in the world. I am pretty sure that at any given time the U.S. economy was growing faster than any other industrialized economy, except possibly for the last several quarters.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    13. Re:Logical Move by copponex · · Score: 1

      An increase in GDP is meaningless. How did the middle class do? How much is the average person paying for basic needs like health care and transportation? Is there a larger disparity in wealth? What's the poverty level? What's the average savings level?

      I haven't seen a serious paper anywhere that claims that the middle class is doing better today than it was in the 1970s. The GDP is up because the majority of Americans are working harder, longer hours for less money. So a few people benefit, and the majority of Americans have seen a poorer standard of living - the only middle class in the western industrialized world to do so. Is that your definition of success?

    14. Re:Logical Move by Quiet_Desperation · · Score: 1

      They only way out of this is education, and education costs money.

      All well and good. The problem, especially here in California, is that certain people just want to throw more money at a clearly broken system. The teacher's union won't even allow merit based pay (what Obama suggested this week). Do you know how hard it is to fire a bad teacher? Do you have any idea how many useless administrators there are? But so many people think this is all well and good and just want to tip another barrel of billions into the same sink hole. It's a definition of insanity to keep doing the same thing over and over and expecting a different result, and yet that insanity is perpetrated on a daily basis by the politicians (and those who love them), and it's all just accepted as normal. Those of us who remain independent and apart from the major parties are left scratching our heads and wondering how we got born into such a batshit insane world.

      Some of us just want the system to be looked at and tinkered with before we spend more money. It that *really* such an unreasonable request? What we are doing now ---IS NOT WORKING---.

    15. Re:Logical Move by Attila+Dimedici · · Score: 1

      I don't know about a paper that claims that the middle class is doing better than in the 1970s, but I do know that the people I know who are middle class are doing significantly better than the middle class of the 1970s. And that is across the board, I don't know anyone today who is not better off than someone of similar economic circumstances that I knew in the 1970s.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
  6. Re:So, are the retailers going to report these sal by geekoid · · Score: 1

    I would wager that while technically you would need to pay taxes in those scenarios, but no one is going to give a rats ass because most people will be downloading through a service like iTunes from their home. Your examples would apply to so few people that it wouldn't be worth paying someone to track you down.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  7. Tax digital downloads and amil order products? BFD by rtrifts · · Score: 5, Interesting

    I live in Canada. Here, all of these products are taxed like any other good or service - and there is no mail order freebie to distory the level playing field of the retail economy by not having to pay them via mial order. Up here? It's not new. It's not shocking. Believe it or not, the sun still comes up every morning - the world turns. Then it gets dark and we go to sleep. Every day. Life goes on.

    Thing is, the federal debt in the USA has been spiralling so fast since 2000 that all of these "reports" and pointing to same as the portents of the Four Horsemen are going to go the way of the dodo in a dozen years or so - or less.

    You simply will not have a *choice* but to increase taxes in the USA to at least Canadian and possibly Western European levels if you don't deal with it soon enough. (My bet - you won't deal with it soon enough. Americans are nutty when it comes to taxes.) You'll put it off and put it off and then put it off somemore until there is no wiggle room left at all. And then you will point fingers at your politicians - instead of you the voters - which is *precisely* where the blame will lie.

    That's the price you will ultimately have to pay for spending money for decades that you simply do not have. That prediction is not a *maybe*. It is a *certainty*. The cheque is coming to your table. Deal with it (and kindly quit your whining about it too, please. It's not a big deal.)

    --
    .Robert
  8. I Wonder... by elemnt14 · · Score: 1

    How the impact of tax will affect purchases? Since people might be reluctant to pay extra money for taxes (especially in this economy), will they then be discouraged to buy online, or will it be insignificant enough to not care? How about paying taxes and shipping?

    1. Re:I Wonder... by Anonymous Coward · · Score: 0

      How the impact of tax will affect purchases? Since people might be reluctant to pay extra money for taxes (especially in this economy), will they then be discouraged to buy online, or will it be insignificant enough to not care? How about paying taxes and shipping?

      Taxation has always curbed a certain amount of trade. I don't have to cite a source, as I would consider it common sense.

      For YEARS we used to have zero tax on services (in Canada). The federal government had to put a stop to that in the early 90's. I mean, seriously, all that trade happening without being taxed? The 7% GST (goods and service tax) was born. Of course, the 8% PST (provincial (retail) sales tax, which also, yes, does cover "goods") wasn't eliminated. So, that's 15% on top of pretty much everything anyone buys. (As an aside, electoral promises were made to eliminate the GST, but, of course that didn't happen, and it was only reduced to 5% about a year ago)

      A decade or so after introduction, around 2002, the PST guys were jealous that the GST guys were getting all this money for services. So...you guessed it...they started charging on services too. As a computer guy, I have to charge PST on on-site technical services. I expect that will leech into other services over time. And yes, some people balk at the idea, but there's nothing I can do. The government taxes us, and we pay it.

      There IS however, something WE can do. Everyone needs to act together, and purposely stop paying the government for things we believe aren't fair.

      They can't put everyone in jail...not because it isn't right, because governments do many things that aren't right...it's because if they did, they'd make $0...THAT is the real power.

      I digress.

    2. Re:I Wonder... by Peyna · · Score: 1

      Taxation has always curbed a certain amount of trade. I don't have to cite a source, as I would consider it common sense.

      Does it though? Instead of you spending your money on X, the government takes your money and spends it on Y. It still gets spent. In fact, when the government takes your money, it's almost guaranteed to be spent on some good or service, because the government doesn't typically horde cash. Whereas, if you held onto that money instead of giving it to the government, you are probably not going to spend as much of that money as the government did, and instead might horde it and not spend it at all.

      --
      What?
    3. Re:I Wonder... by Time_Ngler · · Score: 1

      There was an invention awhile back.. it's very popular, perhaps you have heard of it. It's called a "bank". A "bank" allows you to deposit your money, and they loan it out to other people to spend on goods and services.

    4. Re:I Wonder... by Peyna · · Score: 1

      My point was that people treat income lost to taxes as money lost forever. It's still being used for something, it's just that you have a lot less of a say in how it is used. It's not wasted, just used in a different manner.

      --
      What?
    5. Re:I Wonder... by Time_Ngler · · Score: 1

      The problem is that a lot of it *is* wasted. If the government uses its income to perform tasks or buy goods or services that are useful to no one, it has occupied the time of the people that performed it and the materials used whereas that effort could have been used to perform something useful.

      This equals less *real* goods and services available to the people, and therefore less trade.

      There isn't much difference between someone working for the government to create something useless and someone living off of the government's dole.

    6. Re:I Wonder... by Anonymous Coward · · Score: 0

      "My point was that people treat income lost to taxes as money lost forever. "

      Because it is, in most cases. Over 50% of the government budget is social services, which does not directly create any wealth.

  9. Already taxed in EU by cdrguru · · Score: 1

    In most EU countries there is a 17% VAT tax on electronic downloads. Has been that way for a couple of years.

    Why shouldn't it be taxed in the US?

    1. Re:Already taxed in EU by Chabo · · Score: 5, Insightful

      Because there's no "value added" by introducing a Value Added Tax.

      Why should a business transaction be taxed simply because it happened? Taxes are meant to give the government the bare minimum of income necessary to conduct government business, not to punish people for spending money they received in exchange for their labor.

      --
      Convert FLACs to a portable format with FlacSquisher
    2. Re:Already taxed in EU by Vectronic · · Score: 1

      Because the USA isn't the EU?

      Just because something exists in another country, doesn't mean it should be a world-wide trend.

      I live in Canada, we have a maple leaf on our flag, why shouldn't there be a maple leaf on the US flag?

    3. Re:Already taxed in EU by Burdell · · Score: 1

      The main reason is that sales taxes in the US are only at the state/county/city level, not the federal level. Many years ago, there was a federal court ruling against one state trying to charge sales tax on something bought in another state (I don't remember the details but I'm sure Google does), so mail-order businesses did not have to charge sales tax on shipments to states where they did not have a physical presence.

      Also, the way sales taxes are handled complicates collections on mail/web-order sales. For example, I pay 8% sales tax here: 4% to the state, 2% to the county, and 2% to the city. If I buy something online, how is a random merchant (in another state) supposed to know how much sales tax to collect and where to send it? A big business like Amazon could handle it, but it could put small (Mom-n-Pop type) shops out of business (or they just won't sell online). Telling Amazon to collect taxes because they can handle it, while letting the small businesses bypass taxes, would create unfair competition.

      Also, what gets taxed varies from area to area. For a long time, my state did not tax computer software and games, because they were not considered a physical sale but a license (for once that concept worked for consumers instead of against). That changed of course as software sales went up. Many states don't tax some types of food and clothing ("essential" items), but the exceptions vary.

    4. Re:Already taxed in EU by CannonballHead · · Score: 1

      Because we buy our syrup from you? :P ;)

    5. Re:Already taxed in EU by Killer+Orca · · Score: 1

      Because there's no "value added" by introducing a Value Added Tax.

      Why should a business transaction be taxed simply because it happened? Taxes are meant to give the government the bare minimum of income necessary to conduct government business, not to punish people for spending money they received in exchange for their labor.

      I agree with you in spirit. But as the recession has shown our economy is built on a foundation of sand. Since Consumption and Government Spending are two large factors driving the economy whenever the Government cuts back it adversely effects the economy; they can't spend forever though that money needs to come from somewhere. Unfortunately people either: 1. Don't want to hear with it, 2. Don't want to deal with it or 3. Want to do something but end up doing nothing because changing the bureaucracy to be more efficient is a ridiculous task. I think we can only expect more of these taxes to become a reality as time goes on.

    6. Re:Already taxed in EU by Anonymous Coward · · Score: 0

      In most EU countries there is a 17% VAT tax on electronic downloads. Has been that way for a couple of years.

      Why shouldn't it be taxed in the US?

      That's not the question you should be asking. You should ask why it should be taxed in the EU.

      Unless you work for the government, then I know why you think everything should be taxed.

      Captcha: extort

    7. Re:Already taxed in EU by geekoid · · Score: 1

      Just becasue it's done one way in the EU is no argument for why it should be done here.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    8. Re:Already taxed in EU by ZorinLynx · · Score: 1

      Do you Canadians pay GST/PST on Internet downloads? Or at least GST?

      Just wondering since you have to pay it on pretty much everything else.

    9. Re:Already taxed in EU by Vectronic · · Score: 3, Informative

      Yes and No... it depends on the Province, the size of the company, and wether you are selling in-province or out-of-province, in some it's 0, in others its anywhere from about 5% to as high as 18%.

      Selling outside of country is generally tax free, with exceptions like the EU, where there's some weird translated tax, where 'our' tax of the item gets sent to the EU.

      But naturally, because like all governments it's a clusterfuck of weird loopholes, there are ways around almost all the taxes. But I am by no means an expert on it, so if you really want to know, you'll have to look elsewhere.

    10. Re:Already taxed in EU by jabithew · · Score: 1

      We have taxes that punish people for conducting transactions, being productive citizens and family tragedy. We also reward people for being idle.

      Hey ho, it seems to broadly work.

      --
      All intents and purposes. Not intensive purposes.
    11. Re:Already taxed in EU by CohibaVancouver · · Score: 1

      Just because something exists in another country, doesn't mean it should be a world-wide trend.

      The problem is this: You can either pick

      1) Lots of government spending, and lots of all kinds of taxes to pay for it, including taxes on ether like digital downloads

      or

      2) Little government spending, and as a result fewer / no taxes.

      What those of use struggle with 'in other countries' is that USA has picked both lots of spending and no taxes. It's unsustainable. Pick one or the other, USA.

    12. Re:Already taxed in EU by XMode · · Score: 1

      Because there's no "value added" by introducing a Value Added Tax.

      Yes there is. You didn't have to go down the shops and buy a whole CD for a single track, and you got it cheaper. If that's not added value i don't know what is. Pay your tax so your country doesn't go to the dogs.. (or china)

    13. Re:Already taxed in EU by XMode · · Score: 1

      How about... The company pays its taxes based on where it is and not where the buyer is? That's a LOT simpler isn't it? It will also mean that the local resources that said company uses (roads, water, sewerage, street cleaners... ) get paid for by the entity that's actually using them.

    14. Re:Already taxed in EU by Slavik81 · · Score: 1

      Yes. GST is applied to everything (except basic groceries, and a handful of other products deemed basic necessities). PST is a provincial thing, and the provinces haven't been nearly as good at keeping the rules simple.

      However, my billing address is Albertan and thus I don't pay PST on digital goods because Alberta has no PST. Generally I still have to pay on physical goods, as they'll use the shipping address to determine taxation. GST, however, is rather straightforward in that I have to pay it on all goods and services.

    15. Re:Already taxed in EU by bentcd · · Score: 1

      Because there's no "value added" by introducing a Value Added Tax.

      Well, I don't think anyone is calling it a "value-adding tax".

      Why should a business transaction be taxed simply because it happened? Taxes are meant to give the government the bare minimum of income necessary to conduct government business, not to punish people for spending money they received in exchange for their labor.

      The govt needs to get its money from somewhere, so someone needs to be "punished" for something and in this case that someone just happens to be people buying stuff.

      --
      sigs are hazardous to your health
    16. Re:Already taxed in EU by Burdell · · Score: 1

      Well, the company isn't really paying the sales tax, the consumer (in another area) is. The company is presumably already paying property taxes, payroll taxes, etc. Why should I (as a consumer) pay sales tax to build roads in another state? If I pay sales tax, I want it to go towards my local roads, schools, etc.

    17. Re:Already taxed in EU by Anonymous Coward · · Score: 0

      ... VAT tax ....

      Excellent -- a Value Added Tax tax. I suppose you also go to your Automated Teller Machine machine and key in your Personal Identification Number number.

      Why shouldn't it be taxed in the US?

      Because the EU is not the measure of all nations, you silly twit.

    18. Re:Already taxed in EU by Anonymous Coward · · Score: 0

      Many states don't tax some types of food and clothing ("essential" items), but the exceptions vary.

      Yeah, it's really weird. Many years back, in California, I was in a place where there was a sign next to the cashier stating that food ordered as take-out must be removed to outside the store. I asked why and was told it would be taxed if eaten in-store, but not outside.

      More recently I got a container of hot food and another of cold food at a Whole Foods store. This time the cashier held up the hot food and asked if I was going to eat "this one" outside or inside. I told her it would be outside and asked why it mattered. She said that hot food (only) was taxed if eaten inside. They had just a single, long counter and chairs inside, so you had to eat facing the front window. If I chose instead to eat at one of the tables outside the window, I would not be paying the tax paid by the guy eating the same stuff two feet away inside the window.

  10. Re:So, are the retailers going to report these sal by Chabo · · Score: 2, Interesting

    I have a feeling this will be implemented like sales tax for purchasing items online: you buy an item from Newegg, and they have to charge you sales tax if you live in a state where they have a physical presence (CA, NJ, TN), even if your order is shipped from elsewhere.

    --
    Convert FLACs to a portable format with FlacSquisher
  11. Re:So, are the retailers going to report these sal by pecosdave · · Score: 1

    They syncing version maybe - though it's an interesting idea.

    The leaving the state one - absolutely not. You can't charge sales tax in one state for business done in another state, especially business that is most likely interstate anyways. I'm not going to research the location of the servers to be certain - but iTunes, probably hosted in Washingston state or California. How would Mississippi have any right to tax a transaction between Louisiana and California? I regularly travel between Texas and Louisiana, I sure as hell don't have to pay Texas state tax on Louisiana gas when I cross back, the same thinking should apply.

    --
    The preceding post was not a Slashvertisement.
  12. good luck. by girlintraining · · Score: 1

    Let's start with a fact: If you're over the age of 18 and have ever filed taxes, you're guilty of tax fraud. I don't know what law, but I assure you, you're a criminal. Shame on you. Now, that said, they can pass this law all they want... and it will only succeed in chasing any businesses operating in their state that sell software online away. And really, how many skilled programmers are you going to find in Mississippi anyway? Oh, sorry, that might be stereotyping. Shame on me. :) But seriously -- I suggest the British approach to this for my fellow american citizens: See a stupid law? Ignore it.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:good luck. by Peyna · · Score: 1

      The good thing about the criminal code in the U.S. as it relates to taxes is that most of the crimes require you to act "willfully," which is one step above knowingly, and requires that you voluntarily and intentionally act in violation of a known legal duty.

      In other words, you have to know that what you're doing is a tax crime before you can be guilty of it, under U.S. law, a rare exception to the usual "ignorance is no excuse" rule.

      --
      What?
  13. Someone please help me ... by PPH · · Score: 1

    ... figure the Misissippi tax on an Ubuntu .iso download.

    --
    Have gnu, will travel.
    1. Re:Someone please help me ... by Shakrai · · Score: 2, Funny

      Depends on whether or not Microsoft lobbyists were involved in writing the bill ;) If they weren't 8% of $0 = $0. If they were then 8% of $0 = $1,000.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
  14. Awaiting by Anonymous Coward · · Score: 0

    Photo of the bill on the governor's desk, awaiting...

  15. Use tax by Ghubi · · Score: 1

    Internet and mail order purchases are already subject to use tax in many states. Not that anyone actually pays it.

  16. porn tax (with apologies to Mr. Heston) by Shakrai · · Score: 3, Funny

    You can tax my porn when you pry it from my wet sticky fingers ;)

    and that New York is considering taxing downloads of all kinds.

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
    1. Re:porn tax (with apologies to Mr. Heston) by poot_rootbeer · · Score: 1

      As I understand it, New York State already has a tax rule on the books that the customers residing in state should be taxed on downloads when the company delivering it maintains a "digital warehouse" in the state...

  17. Re:So, are the retailers going to report these sal by pecosdave · · Score: 1

    Good luck getting a retailer in New Jersey to comply with Mississippi state law if they don't have to, especially small retailers.

    Though, getting Apple and a few the largest others, like Amazon to comply wouldn't be as hard.

    --
    The preceding post was not a Slashvertisement.
  18. Re:So, are the retailers going to report these sal by sqlrob · · Score: 1

    You can't charge sales tax in one state for business done in another state

    A rose by any other name...

  19. Re:So, are the retailers going to report these sal by geekoid · · Score: 2, Interesting

    http://window.state.tx.us/taxinfo/use/

    Many state do require you to report items purchased in another state, based on how long ago you bought it.
    You might want to find out about that tax fraud you've been committing.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  20. Re:Tax digital downloads and amil order products? by geekoid · · Score: 1

    This is a result of the Republicans loosening banking regs. since Reagan and the 'choking the beast' tax cuts.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  21. Way to go, guys! by kimvette · · Score: 1

    Good job, lawmakers. As we all know, the best way out of an economic recession or depression is to increase and create new taxes. After all, the fastest way to economic recovery is to increase the tax burden on citizens!

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  22. Re:So, are the retailers going to report these sal by AuMatar · · Score: 2, Interesting

    Its called a "use tax". For example CA charges one on anything bought on OR (where there is no sales tax). Buy a car there and you'll quickly find yourself being taxed by CA (although admittedly only big things like cars get tracked down. Everything else is done on the honor system, with remarkably few people filling out anything but a 0 on that line.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  23. Re:So, are the retailers going to report these sal by Chabo · · Score: 2, Interesting

    Read my post again: I listed those three states for Newegg because of sales tax. Newegg has locations CA, NJ, and TN, so if they ship an order anywhere in CA, NJ, or TN, they have to charge sales tax. If Newegg ships a package to any of the other 47 states, they don't charge sales tax.

    As far as I can tell, if Mississippi passes a Software Sales Tax, then the only retailers that have to comply are retailers in Mississippi to Mississippi residents.

    --
    Convert FLACs to a portable format with FlacSquisher
  24. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    I wouldn't place the blame on voters who really have little say on what politicians do. When we vote, it's usually a choice between bad or worse...

  25. Re:Tax digital downloads and amil order products? by CrimsonAvenger · · Score: 2, Insightful

    Thing is, the federal debt in the USA has been spiralling so fast since 2000 that all of these "reports" and pointing to same as the portents of the Four Horsemen are going to go the way of the dodo in a dozen years or so - or less.

    All very well and good.

    But Mississippi isn't the Federal government, and Ms can tax whatever it likes without affecting the Federal deficit in the slightest.

    Note, by the way, that Ms, like pretty much all the States (and unlike the Federal government), are required to balance their budgets.

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  26. Re:So, are the retailers going to report these sal by geekoid · · Score: 1

    Yes. While technically you should ahve been paying the use tax on that yourself* , nobody does.
    Wasn't a big deal when .00001% of sales where mail order. Now it's a big deal.

    Mail order companies know this is coming, that's why they are pushing for states to have a single tax for the entire state for these purchases.
    It's one thing to ahve to stay up to date on 50 sales tax numbers, it's another for every state county city, etc . . . in the US.

    Maybe the feds should apply a flat rate to all sales, and then divide those monies up to all states based on population.

    *assuming your state has a sales tax.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  27. Re:Tax digital downloads and amil order products? by girlintraining · · Score: 2, Insightful

    I think you misunderstand our method of government. Unlike most "western european" countries, our government is based on a division between the county, state, and federal levels. And it's not a clear division either. For example, a federal law trumps a state law, unless it happens to be in the state constitution, in which case only the federal constition can override or restrict it. You might imagine what merry hell this plays on our justice system (give you a hint: Everyone in this country is a felon, it's just that some of them haven't been caught yet). The law books are just that damned dense, and have that many competing administrations. And laws are rarely, if ever, repealed. Now, imagine how hellacious that is, and multiply it by a hundred and you have the tax codes in this country.

    It's not about tax as a percentage, or tax of a certain good or service, but simply knowing what to pay in. The tax code has become so horribly complicated that nobody wants to fix it, so they throw monkeys at it and they flip levers and switches and hope that it dials into the desired amount of income. It never does. Recently they approved a federal tax on cigarettes, one of a variety of so-called "sin taxes" that we knew the democrats would push forward as the solution to the deficit (if you're a minority of some kind or another -- prepare to be taxed. Alcohol is safe for now though because everybody drinks in a crap economy). Next they'll be taxing food with "trans fat" in it, and other acts of sheer idiocy, and the pattern will continue.

    You have this attitude that if you sprinkle magic european-thinking fairy dust over america there problems will all be solved. That's really naive. The current state of affairs is a byproduct of how this country's government is structured, and while at times it irritates all of us, it is all about tradeoffs. As I'm sure you're discovering across the pond right now, the European Union is a giant clusterf--k of monumental proportions. Our country did the same thing -- and then we abandoned that system of organization and created the US Constitution. The European Union is experiencing many of the issues our country dealt with 200 years ago -- which is, how do you organize a number of autonomous and sovereign member states into a cohesive whole? There must be a balance struck between the power of the central authority, and that of its member states.

    Our balance point may not be perfect, but it's been around for 200 years. I doubt the European Union will last another twenty. For starters, their constitution is way too long. ;)

    --
    #fuckbeta #iamslashdot #dicemustdie
  28. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    I live in Canada

    When the shit does finally hit the fan the biggest customer of your cattle, energy, labor, oil and practically everything else Canada produces will vanish. Despite your discipline and rigorous public governance you're still going to be screwed.

    That's the price you will ultimately have to pay...

    ...for relying on the American consumer.

    Enjoy.

    Oh, and when Obama gets around to renegotiating NAFTA, try not to whine too much. It's not a big deal.

  29. no nO No NO NO NO!!!!! by Ozlanthos · · Score: 1

    The way to make money off of the internet is to use it like a highway. Except instead of having ot cart your dumb ass all over hell and back, you could be conducting the business of the day from the comfort of your own home. That is where the money is, it is in the SAVING OF MONEY (a penny saved is a penny earned remember????). The money to be made off of the internet is in having to pay 50% of what you do now to insure the health if your employees. It is in the saving of space on the design of your "robotic" manufacturing plants (occupy less "real" estate, no need for corridors or offices, just a maintenance shop, a front office, and a staff meeting room,where you convene once or twice a month to talk face to face). The internet is the answer to our energy crisis too. Look around you if you work in an office and ask yourself sometime, "what of my surroundings here at work could I NOT DO WITHOUT"? Of those things that you CANNOT DO YOUR JOB WITHOUT, "how many of these things could be provided "virtually"? No doubt there are many of you that need to be on-site as a part of your job, but I bet there are far more of you who can do everything you do now for your company or business, from some cyber-cafe in town. Instead of pursuing this inevitable migration with gusto, it seems most of the US "Economy" is based on the idea that the internet MUST BE EXTORTED FOR EVERY LAST CENT IT CAN PROVIDE. Every time I hear someone on C-Span talking about the internet, the subject matter invariably is "how do we make money off of the internet". Get it straight, THE INTERNET IS NOT "THE PRODUCT". The "PRODUCT" is the service or items you provide others VIA THE INTERNET. The sooner we get away from the "capitalist-extortionist" mindset that currently runs internet related businesses, the sooner we can all make "real" money providing our goods and services to the world... FREE THE INTERNET!!! -Oz

  30. Electrically transferred by Cajun+Hell · · Score: 1

    That's the last straw! I'm switching to fiber optic networking.

    --
    "Believe me!" -- Donald Trump
  31. Bad news by fishbowl · · Score: 2, Insightful

    The bad news is there might be a sales tax on downloads.

    The far, far worse news is you are in Missinhippie. Get out while you can.

    --
    -fb Everything not expressly forbidden is now mandatory.
  32. Sex by Saysys · · Score: 1

    Legalize prostitution then charge everyone for taxes they should have paid on sex they have for "free".

    1. Re:Sex by Anonymous Coward · · Score: 0

      No woman likes you enough to have sex with you for free?

    2. Re:Sex by Logic+Worshiper · · Score: 1

      Legalize marijuana and tax that too.

  33. Re:Tax digital downloads and amil order products? by kpainter · · Score: 1

    Note, by the way, that Ms, like pretty much all the States (and unlike the Federal government), are required to balance their budgets.

    Only up to the point that the person doing the counting runs out of fingers and toes.

  34. Re:Tax digital downloads and mail order products? by rtrifts · · Score: 1, Redundant

    I didn't suggest Mississippi was the Federal Government. I did suggest - and do suggest - that the overall deficit burden at all local state and Federal levels is interdependent and is certain to result in cessations of funding and transfers from one government level to the next, requiring significant increase in taxation over the next 12 years to come close to maintaining current commitments.

    That means when the federal government runs a deficit, all ogvernment levels will ultimately be paying taxes to deal with the fallout of that red ink on their budgets in subsequent years. There is no free lunch.

    My point: You will not have a choice. You once had that choice and you made that choice. You have been enjoying a dollar's worth of government for much less than a dollar for decades. That dollar's wortg of government was not "on sale". The bill for the difference - between what you got and what you paid for it - comes due.

    In Canada, unlike virtually all of Western Europs and the United States, we have bene running significant federal budget surpluses since 1995. 2009 will be our first year in the red in over 14 years. That's the cost of bad times. We'll go back in the black in two or three years, I expect. The taxpayers in Canada would rather services were not cut and deficits are not run unless they have to be. We will keep tax levels higher in order to make that happen.

    Americans? They won't. Someone says raise taxes, and middle America freaks out.

    That, essentially, is the story of America since before Day One. It has its strengths - and it has its weaknesses, too. Welcome to "weaknesses".

    Americans have been told that they can pay now or pay a lot more later. They have consistently chosen "a lot more later" please. Without ever really *believing* that "later" will actually come.

    Fair enough. In many cases (now, say) that's probably good fiscal policy. In 2002-3, choosing to go fight TWO wars and cut taxes at the same time? All by borrowing the money from the Chinese to do it?

    That's maybe not so good a fiscal policy.

    Good or bad... doesnt' really matter now. That bill comes due either way.

    Moral of the Story: Man up and stop whining about it.

    --
    .Robert
  35. Government is the biggest vulture by elloGov · · Score: 0

    This pisses me off. No good reason to tax this but to just further profits. Give me a logical reason why software should be taxed. Why does the government deserve a piece of the action? I'm not against taxes, it's just got to be logical.

  36. just books, music and movies by Anonymous Coward · · Score: 0

    The way I read the bill, it appears that only digital books, music and movies are taxed: (a) "Specified digital products" means electronically transferred digital audio-visual works, digital audio works and digital books.

  37. Mississippi Bill? by twoDigitIq · · Score: 5, Funny

    Who the hell is "Mississippi Bill" and why does he care about software sales? He should probably devote more of his time to planning his upcoming battles with Minnesota Fats and the Cincinnati Kid.

  38. Mississippi Bill by reSonans · · Score: 1

    Reading the story title, I thought this article was going to be about a colourful, wacky American named "Mississippi Bill." Drag that it isn't... :)

    --
    Light the blue touch-paper and retire immediately.
    1. Re:Mississippi Bill by Garbonzo00 · · Score: 1

      Hah. Yeah, I thought the same thing. Like Tennessee Jed.

  39. Re:Tax digital downloads and amil order products? by MasaMuneCyrus · · Score: 1

    America was in debt since ever before Andrew Jackson and ever after Andrew Jackson. Certainly long before Reagen.

    Jackson despised any form of national bank (in our time, the Federal Reserve), and saw to their bankruptcy and demise, as he thought that whoever controlled the money had power and he wanted the people to have power.

    After bankrupting the national bank, he became the first and only president to date to pay off the national debt. I suspect he will also be the last president to pay off national debt, as the United States probably won't exist in its current form by the time it will take to pay off the $15 trillion left by the end of Obama's first time.

  40. Re:Tax digital downloads and amil order products? by AnotherJake · · Score: 1

    You simply will not have a *choice* but to increase taxes in the USA to at least Canadian and possibly Western European levels if you don't deal with it soon enough. (My bet - you won't deal with it soon enough. Americans are nutty when it comes to taxes.) You'll put it off and put it off and then put it off somemore until there is no wiggle room left at all. And then you will point fingers at your politicians - instead of you the voters - which is *precisely* where the blame will lie.

    No, it really is the politicians' fault. They flat-out lied to us (over and over). Bush literally told us that it would be wrong for any country to invade another country without just cause, a clear goal, yada yada... The Republican party said they wanted to lower taxes and make government smaller and do less spending. All they did was largely lower taxes on the rich (because they thought that would make things better, which it clearly did not) and then did the exact opposite of what they said they'd do with everything else, which in my view qualifies as pure lies. That doesn't exactly put the blame on the voters in my opinion. So yes, fingers are being pointed at the politicians because they are nearly all liars, crooks and criminals of the highest order.

    I don't know how it is in Canada, but our tax system here in the US is unjust, and insanely complex. We don't mind paying taxes because we all know the roads need to be paid for by someone, but our government taxes us for roads, and then later changes their mind and spends it on wars and making new government agencies to bully its citizens with, which is not what we voted for in the first place. Then they confiscate our wealth with deficit spending, which is even worse than taxes. Now our income is worth less because the cost of goods is more. Then they need more money (because they made it less valuable, remember) and tax us from any new angle they can find, which even further increases the damage they did by printing more money in the first place. It's a vicious, and stupid cycle which has absolutely nothing to do with our "nuttiness" about paying taxes.

  41. Re:So, are the retailers going to report these sal by dslbrian · · Score: 1

    NY tried something similar last year. Newegg started out complying with NY's sales tax, but then told them to shove it. Plenty of references here - Newegg Defies New York Sales Tax Law

  42. Re:Tax digital downloads and amil order products? by rtrifts · · Score: 1, Troll

    First, I'm a Canadian. I live in a federal state system, same as you do, ok?

    Second, I'm a lawyer. I understand how parmountcy and shared field theories of constitutional law work (probably much better than you).

    Third, I don't give a rat's ass about how you go about fixing your domestic problems or how you fix your fiscal policy. That's because they are not mine to fix; they are YOURS to fix. Find your own unique American solution, by all means. Take as much American excpetionalism as you can carry; fill your boots.

    Fourth, I'm not naive about sprinking rational liberal Western European pixie dust over Middle America. I don't think for **one moment** that America's political culture is going to change. America has never been terribly rational about taxes and that it not going to change.

    Which is exactly my point: that's why the ultimate tax bill will get only bigger before you are left with no other choice but than to pay it. But make no mistake, Western European pixie-dust or no, the bill comes due. Whether you like it - or not. The bill doesn't care much about why you incurred it. It only wants to be paid.

    And that "some day maybe far off in the future" day of bill paying? It's on the horizon and it is a lot nearer than you think.

    --
    .Robert
  43. Re:Tax digital downloads and mail order products? by CrimsonAvenger · · Score: 2, Insightful

    I didn't suggest Mississippi was the Federal Government. I did suggest - and do suggest - that the overall deficit burden at all local state and Federal levels is interdependent and is certain to result in cessations of funding and transfers from one government level to the next, requiring significant increase in taxation over the next 12 years to come close to maintaining current commitments.

    Not so much as you might think. Federal commitments are just that - Federal. If the Feds don't, or can't, send the money to the States to cover Federal commitments, the States aren't actually under any obligations to find money to pay for those Federal commitments.

    That means when the federal government runs a deficit, all ogvernment levels will ultimately be paying taxes to deal with the fallout of that red ink on their budgets in subsequent years. There is no free lunch.

    Nope. Feds can't pay their bills, they can't. Doesn't obligate the States to pay the Fed's bills.

    My point: You will not have a choice. You once had that choice and you made that choice. You have been enjoying a dollar's worth of government for much less than a dollar for decades. That dollar's wortg of government was not "on sale". The bill for the difference - between what you got and what you paid for it - comes due.

    Won't argue with that. But much of that "dollar's worth of government for much less than a dollar" has been at the Federal level. States aren't allowed to play those games, generally.

    So, when the piper comes calling for his payment, the Feds will be raising taxes on everyone and everything to make up the differences. But the State governments won't be in that pickle - they have no deficit spending to make up, and the Feds can't really require the States to spend money (well, they DO do so now and then. But the Courts generally tell them to take a flying leap if the States don't want to play).

    So, in ten or twenty years (I'm betting closer to ten than twenty, myself), the Feds are going to be in a serious crack. But the States will, in general, be fine.

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  44. Re:Tax digital downloads and amil order products? by arminw · · Score: 1

    ....That's the price you will ultimately have to pay for spending money for decades that you simply do not have....

    That is pure and unadulterated BS. We here, as most Americans cannot spend more money than we have or can borrow. Most credit cards have a limit. You also forget, that someone who has the authority to print money, (or program computer bits in a financial system) without going to jail, can never go bankrupt. Throughout most of human history, the medium of exchange we call money has always had some intrinsic value. This has no longer been true for the last 80 or so years, but instead its value is defined arbitrarily by those that have taken the authority upon themselves to create money out of thin air. One day, perhaps soon, this whole system of funny money will collapse under its own weight of worthlessness.

    The problem is, that nobody is sure what this collapse will look like. Maybe it will be like it was with my grandmother in Germany. She told me of a man in her town that took a wheelbarrow full of money to a bake shop in order to buy a few loaves of bread. While he was inside inquiring where to bring the money, somebody dumped the money on the sidewalk and made off with a wheelbarrow.

    --
    All theory is gray
  45. Re:Tax digital downloads and mail order products? by rtrifts · · Score: 1

    There seems to be a disconnect here. When the issue is one of an ability of a State government to pay its bills which it uses Federal money to do, - and the money stops - there are two choices:

    1 - find the money (that means taxes)
    2 - stop the program

    It's all well and good to shrug and say "not my problem". When the roads are crumbling and the bridges falling down, my guess is that Americans at all local and state levels may share another view.

    By the way, issuing long term debt and deficit financing are two different things. A state that does not issue a security to the public to finance a debt does not mena that they have not borrowed from finacial institutions to accumulate debt. Most do. Some do both. I doubt California, for exmaple, shares your sunny "not our problem" optomism.

    --
    .Robert
  46. Re:So, are the retailers going to report these sal by Clay+Pigeon+-TPF-VS- · · Score: 1

    I am not a lawyer, but I believe that there is a dormant commerce clause issue when states try to tax sales of businesses that do not have a physical presence in the state.

    --
    Viral software licensing is not freedom, it is in fact GNU/Socialism.
  47. Re:Tax digital downloads and amil order products? by rtrifts · · Score: 1

    "When the shit does finally hit the fan the biggest customer of your cattle, energy, labor, oil and practically everything else Canada produces will vanish. Despite your discipline and rigorous public governance you're still going to be screwed"

    This is, regrettably, mostly true. Which is why watching your public policy decisions over the years is something we pay very close attention to in Canada. And it does, in fact, scare the shit out of us.

    --
    .Robert
  48. Re:So, are the retailers going to report these sal by Anonymous Coward · · Score: 0

    You can't charge sales tax in one state for business done in another state,

    True.

    I'm not going to research the location of the servers to be certain - but iTunes, probably hosted in Washingston state or California. How would Mississippi have any right to tax a transaction between Louisiana and California?

    It doesn't matter where the servers are, it is where the business is. Apple has a business presence in all 50 states (AFAIK), so Apple isn't allowed to claim that the servers are in Cupertino so we only charge sales tax for California residents.

    I regularly travel between Texas and Louisiana, I sure as hell don't have to pay Texas state tax on Louisiana gas when I cross back, the same thinking should apply.

    Well, actually you should pay the applicable Texas sales tax (if any) when you cross back (nobody does though). But the onus is on YOU to remit the tax to Austin, and not on the Louisiana gas station to collect the Texas sales tax and send it to Austin.

  49. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    Maybe we should collect taxes from you. While you were ice skating in your northern paradise of universal health care, we were arming ourselves to the teeth to contain the many countries with insane governments. The fact is that the standard of living in most of the USA is lower than that of Canada and Western Europe, so new taxes are a big deal.

  50. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    First, I'm a Canadian. I live in a federal state system, same as you do, ok?

    No, you don't (and I'm a canuck). The powers of a Canadian province are far less than the powers of a US state. Not long ago, when the government of Ontario was talking about banning firearms, someone had to point out that the criminal code is exclusively a federal area, so a province can't do that.

    Third, I don't give a rat's ass about how you go about fixing your domestic problems or how you fix your fiscal policy. That's because they are not mine to fix; they are YOURS to fix. Find your own unique American solution, by all means. Take as much American excpetionalism as you can carry; fill your boots.

    You should care, they are Canada's problems as well. Given that Canada is the USA's largest trading partner, and vice versa, a recession in the US is going to have dramatic effects in Canada.

  51. Re:Tax digital downloads and amil order products? by rtrifts · · Score: 2, Insightful

    I well understand the overall complexities of monetary policy. Spending money you do not have means borrowing it. You didn't have it, now you borrowed it. There. No you have it to spend.

    We're clear on that part, right?

    I'm not talking about pating the mortgage and groceries. Governments don't work that way. But in the end, they entire monetary system still depends upon governments paying it back - and being charged interest in the meanwhile.

    At the ned of tha day, when the interest on your debt forms such a great portion of your overall budget that it squeezes out vital programs, you will have no choice but to raise the tax. There is a level of service that people will not accept being cut-off. The bill comes due.

    Put another way, the people you borrow the money to fuind the difference between what you collect and what you spend? They want their interest. That's the deal. They'll probably float the pricnipal again, but that only goes so far. Time comes, they want it for other things, too. Like, say, buying stuff for themselves instead of lending it to America. That's the problem about looking to china to fund your deficit (a problem tied to a very undervalued Chinese currency, doubtless) but there it is just the same.

    Fiscal and Monetary policy is easy when you owe most of the money to yourselves internally. But America crossed that Rubicon long, long ago. There is a very real price to all of this.

    --
    .Robert
  52. Re:So, are the retailers going to report these sal by compro01 · · Score: 2, Informative

    I believe that was soundly decided against in Quill Corp. v. North Dakota.

    --
    upon the advice of my lawyer, i have no sig at this time
  53. Re:So, are the retailers going to report these sal by Creepy · · Score: 1

    The problem is, the way the tax codes are from each state it is actually impossible for mail order and internet companies to pay them without added infrastructure.

    And it's not just state tax - you need to tax for the county/parish/etc the person lives in, as well.

    Take Minnesota for example. There is a 6.5% statewide sales tax. If you live in Hennepin County, you need to pay an additional .15% sales tax for the Twins Stadium levy. Now the impossible part - Minnesota also has a $770 Use Tax exemption. Let's say I buy a $300 item through an internet site or catalog - how do I know whether to tax the person or not? Minnesota also requires this to be filed as a separate form (in fact, only 22 of the 48 states with Use Tax have a line item on the state Sales Tax for it).

    I personally would sue my state for double taxation if they pass such a law without provision for exempting me from Use Tax (which none of these proposals have ever had from what I've seen). I'd much prefer the voluntary Streamlined Sales Tax Project. I already do pay my Use Tax, so I'd love an easier way to do it.

  54. Re:Tax digital downloads and amil order products? by rtrifts · · Score: 4, Insightful

    Last I checked, we've spent $15,000,000,000.00 on a war in Afghanistan and lost a couple hundred Canadian soldier's **lives** there fighting a war because of some nutbars who attacked AMERICA. They attacked you - not us. Mainly because of shit you do and have done - and NOT because of some shit we do and have done.

    We fairly clear on that part?

    Still, given the audacity of the motherfuckers in attacking our closest allies and best friends, spending all that blood and treasure to assist America in kicking their asses was the least we could do for our best friends. And unlike most of the the Western Europeans, we actually put our guys in harm's way in Afghanistan. Our troops are there to fight. Not to be stationed in a base with orders not to fight and just fly a flag and call it "helping".

    We fairly clear on that part too?

    Still, that's the least Canada could do, given 9/11.

    The least you could do, otoh, might be to maybe acknowledge that and say thank you (and sorry for making the war unwinnable and your sacrifice meaningless with that second front in Iraq thing. Real sorry about that guys.)

    Just sayin'.

    --
    .Robert
  55. Re:Tax digital downloads and amil order products? by AnotherJake · · Score: 1

    Which is exactly my point: that's why the ultimate tax bill will get only bigger before you are left with no other choice but than to pay it. But make no mistake, Western European pixie-dust or no, the bill comes due. Whether you like it - or not. The bill doesn't care much about why you incurred it. It only wants to be paid.

    And that "some day maybe far off in the future" day of bill paying? It's on the horizon and it is a lot nearer than you think.

    We're still paying off debt we incurred during WWII. I doubt this new debt is anything less than net 60 years either. That's one of the unfortunate side-effects of this spending -- it's going to affect not only my children, but probably my grandchildren and great-grandchildren, and maybe even great-great-grandchildren. Our politicians rely on building the tax base by future population growth, not paying off bills due in any particular rush, as you seem to be suggesting.

  56. Unintended Consequences by Buelldozer · · Score: 2, Insightful

    So, will the downloads that Radio and Televsion stations make from their content providers be covered by this?

  57. Re:Tax digital downloads and amil order products? by compro01 · · Score: 1

    1. No, speaking as another Canadian, their federal system is significantly different. There is a much stronger divide between state and federal law than there is between provincial and federal law.

    2. In terms of debt:GDP ratio, the US is roughly where we were at in the early 90s after the PCs got finished with things, and they're going into a recession, not coming out of one, so I really agree this is going to get ugly quickly.

    --
    upon the advice of my lawyer, i have no sig at this time
  58. Re:Tax digital downloads and amil order products? by Peyna · · Score: 1

    For example, a federal law trumps a state law, unless it happens to be in the state constitution, in which case only the federal constition can override or restrict it.

    Go back and read the Supremacy Clause again. It clearly says that federal law trumps state constitutions and state law.

    This Constitution, and the laws of the United States which shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding.

    --
    What?
  59. Re:Tax digital downloads and amil order products? by AnotherJake · · Score: 1

    At the ned of tha day, when the interest on your debt forms such a great portion of your overall budget that it squeezes out vital programs, you will have no choice but to raise the tax. There is a level of service that people will not accept being cut-off. The bill comes due.

    All we have to do is stop paying out 250 billion dollars a year overseas to fund that "bullshit that we do to other countries" and we'd have a pretty good chunk of yearly payments taken care of right there. Last poll I saw, the American people don't support messing around with other countries, it is our government which does that all on its own, even after we've voted for them on their promise not to. There is a lot more going on here than that too, like the fact that many of our government agencies are utter wastes of taxpayer money. Take the FTC for example: Do they regulate trade? No. Did they do anything to even bother talking to the oil companies when they were raping us at the pump? No. Those are costly services we can do without. Add them up and we can pay off this stupid debt pretty quick AND make people happier at the same time.

    So you're right that we can't afford this debt in the long-run, but I disagree that raising taxes is the *only* solution. Cutting idiotic government spending is equally possible, although it is politically impossible to imagine that happening with this current batch of scum (right and left). We desperately need political change here in the US, not more taxes.

  60. Interstate commerce? by Anonymous Coward · · Score: 0

    I thought states weren't allowed to tax interstate commerce? Or do they only tax in-state transactions?

    1. Re:Interstate commerce? by mysidia · · Score: 1

      I thought states weren't allowed to tax interstate commerce?

      According to past court rulings it's true, but they're trying to do it again..

      It could be a long time before anyone brings an action to the courts, and they decide on the constitutionality of their new tax regimes, especially with the states highly-paid lawyers vigorously defending the new laws against constitutional challenges that might come up, and playing every delay/stall tactic possible.

      In the mean time, residents will pay, or the states' tax authorities won't hesitate to utilize all means at their disposal to severely penalize (which essentially means fines and taking cash)

      Raking in a few bucks over the next few years, might be 'good enough' for now.

  61. Re:Tax digital downloads and amil order products? by rtrifts · · Score: 1

    If you think an American State government has more power than a Provincial government in the massively decentralized Canadian constitutional system, then to be blunt: you don't have a **clue** what you are talking about, Mr. Canuck.

    We traded off multiple coexisting criminal powers at the federal and provinicial levels as just being bad public policy. Instead, we gave provinces exclusive jurisdiction over "Property and civil rights". Money and the regulation of commerce and contracts is where the power is in an industrial economy. The power is not in deciding what's porn and what isn't, my misguided friend.

    Moreover, our courts (to be fair, the Privy Council in the U.K., but nevermind that) also downplayed the Canadian federal power that comes with managing interprovincial trade, whereas the American constitutional powers went essentially nuts justifiying every new Federal department and regulatory authority with reference to insterstate trade regulation in America's constitution (and that little matter of the Civil War certainly didn't hurt a sharp realingment in fafor of the Federal constitutional authority in the USA, either).

    Anyways - you are not simply a little wrong; you are DEAD wrong.

    --
    .Robert
  62. Not a done deal by backdoc · · Score: 1

    Haley Barbour is a stanch Republican and a Republican presidential favorite. Him signing this is not a done deal.

  63. Re:So, are the retailers going to report these sal by pecosdave · · Score: 1

    Wow, that is interesting, and here I was thinking that gas was legal, as were the books from the book store.

    On a related note - I often grab a couple of Fried Boudain Balls in the morning at the gas station before I start driving back. If I haven't taken a dump before I cross the state line (which I never stop to do - rest stops ewww) am I liable for the Fried Boudain Balls as well?

    I'm tempted to file the paperwork to pay the taxes on it just to make the state officials laugh.

    --
    The preceding post was not a Slashvertisement.
  64. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    Actually, it's my understanding that you pay federal tax (GST) on products bought out-of-province but not provincial taxes (at least in Ontario with PST).

  65. Re:Tax digital downloads and mail order products? by Anonymous Coward · · Score: 0

    But is having such a huge debt really a big deal anyway? I mean, as long as we keep paying the immediately due part, it doesn't even matter if the overall debt is growing. It's not like we can pay the debt we have now anyway.

    In summary, fuck it.

  66. Sounds like a service opportunity for non-tax stat by Anonymous Coward · · Score: 0

    So, I setup a proxy "service" in my state and charge a monthly fee. The charge is enough to keep the proxy fast and encrypted and not retain **any** log files.

    $5/month for 5GB of download? $10/month for 10GB ....

    Or you can just use tor.

  67. Re:Tax digital downloads and mail order products? by girlintraining · · Score: 1

    Actually, most of the "blue" states make a net contribution in federal taxes, while the "red" states take that contribution. If the federal government's aid to the states collapses, it will be the south that pays while the north shrugs and continues much as things are now. It could conceivably lead to another civil war along the old lines, over the same reason: Economics. The south simply doesn't have the money or natural resources to survive without the assistance of the north. -_-

    --
    #fuckbeta #iamslashdot #dicemustdie
  68. Re:Tax digital downloads and amil order products? by petermgreen · · Score: 1

    Our politicians rely on building the tax base by future population growth
    Afaict in developed countries there is very little population growth. Some countries are even in population decline!

    immigration can help aleviate this to some degree but that has issues of it's own.

    --
    note: i'm known as plugwash most places but i screwd up registering that here somehow in the past and now can't register
  69. Re:Tax digital downloads and amil order products? by stuff+and+such · · Score: 1

    Here in the US I'm opposed to raising taxes to that of a Western European nation on the basis that we already on average work more hours per week than any other country. I'll consider letting my government raising taxes when I get the same pay I do now for working Western European hours.

    --
    my UID occurs in pi starting at the 384,199 digit after the decimal point.
  70. There are not software sales. by kseise · · Score: 2, Interesting

    There are not software sales. As we have all learned, software is licensed. No sale, not tax. You want to tax it? Make it a sale, and let me do with it as I please.

    1. Re:There are not software sales. by Richard_at_work · · Score: 1

      You are sold a license - there's your sale...

  71. Really? by tjstork · · Score: 1

    Please show me where taxes on the citizens hurt the economy

    Well let's see. I can pay some money to the government to keep some homeless crackheads alive, or I can put useful people to work with my own money. Seems to me that useful people deserve money more.

    They only way out of this is education, and education costs money.

    No, the way out of this is to make stuff. Education helps you do that, but the real thing you need is individual initiative. Another way you could improve the American economy, and really only the American economy, is by getting rid of free trade.

    --
    This is my sig.
  72. Re:So, are the retailers going to report these sal by MichaelSmith · · Score: 1

    Maybe the feds should apply a flat rate to all sales, and then divide those monies up to all states based on population.

    We have exactly that in Australia. Its called the Goods and Services Tax.

  73. Why shouldnt this be implemented? by jonwil · · Score: 1

    If you walk into a CD store and buy a CD, you pay tax on it.
    If you buy a CD from Amazon, you are also supposed to pay tax on it (lots of people don't declare it but under the law you are supposed to do it)
    Why shouldn't the same thing apply just because the music is digital bits on your hard disk or iPod instead of digital bits of a round shiny bit of plastic?

    1. Re:Why shouldnt this be implemented? by vertinox · · Score: 1

      If you walk into a CD store and buy a CD, you pay tax on it.
      If you buy a CD from Amazon, you are also supposed to pay tax on it (lots of people don't declare it but under the law you are supposed to do it)

      Not if you live in Delaware.

      Of course you'd have to live in Delaware.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
  74. Re:So, are the retailers going to report these sal by Anonymous Coward · · Score: 0

    You might want to find out about that tax fraud you've been committing.

    Jeez, thanks a million for the advice.

    While you're down there, would you like to blow me?

    Hah -- captcha = counsels.

  75. Contact your state legislative reps... by Anonymous Coward · · Score: 0

    and let them know that you support a 10th Amendment resolution putting the federal government back in its rightful place as an agent of the states.

  76. Tax Porn Downloads by Flwyd · · Score: 1

    They should tax porn downloads, so the state gets a piece of each ass.

    --
    Ceci n'est pas une signature.
  77. Property Tax by Flwyd · · Score: 1

    In many states, property tax is the primary source of income for local (county, city, fire district...) governments. Conveniently, those governments provide services to people using that property (social services, road maintenance, putting out fires...).

    The economist-minded folks might also point out that if someone has a lot of land and not much income, the land isn't being used very effectively, so having to sell because taxes are too high will increase the efficiency of used. (I have some philosophical issues with this line of reasoning, but it's got a point.)

    On the plus side, it means that if you live in a rural area but work and shop in the city, your house in the country gets a paved road, a sheriff's department, and fire protection. It also means school districts in areas with high house prices are better funded that districts in poor areas where parents are less able to compensate for a school's shortcomings. It's not a perfect system, but it works fairly well.

    --
    Ceci n'est pas une signature.
    1. Re:Property Tax by TheLink · · Score: 1

      The economist minded folks might also point out that most people who are retired, might as well drop dead and pass their assets to the rest of society ASAP.

      Property taxes can help to speed this up.

      BTW, obesity and smoking is not such a huge problem in economic terms. Since it does help address the "aging population problem" that Governments seem to say they are worried about. As long as you have a cap on public money paid out to keep people alive, that's no prob.

      --
  78. Re:Tax digital downloads and amil order products? by cayenne8 · · Score: 1

    I'd rather cut spending FIRST....I think we could shed a LOT of cruft, before we actually need to raise taxes any more.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  79. Re:Tax digital downloads and amil order products? by arminw · · Score: 1

    ...you will have no choice but to raise the tax...

    There is one other choice and that is the one governments have traditionally taken when they went bankrupt, that is they had a crushing burden of debt. All governments nowadays have given themselves the power to create money out of nothing with which they can pay off whatever debt they may have. This of course causes runaway inflation of that particular color of Money, but the debt is paid off with worthless paper. Nowadays of course in a global economy, all the different colors of money bleed into one another and are intertwined. It is clear that such a fiscal collapse will eventually come worldwide because the United States is not the only government head over heels in debt. When, not if, that happens, there will arise from the ruins a world monetary and governmental system that will come to power on the promise to prevent such another such world wide economic meltdown in the future. The new system will include the mandatory issuance some sort of numerical identifier to every person. We have presently the precursor to this sort of thing with our Social Security and other national identification numbers. Cash will no longer be in existence and every transaction will be tracked.

    It remains to be seen whether the world is on the brink of such a collapse already today, or whether there will be a period of recovery before such a meltdown finally does happen.

    --
    All theory is gray
  80. Re:So, are the retailers going to report these sal by Anonymous Coward · · Score: 0

    It's one thing to ahve to stay up to date on 50 sales tax numbers, it's another for every state county city, etc . . . in the US.

    That's been the major beef with the retailers -- all the local tax rates. I'm in CA and live in San Mateo county. I worked in Marin county. Since the fools at UPS would often arbitrarily refuse to deliver (even from Amazon) without an adult to receive and sign for a package, I had all my deliveries sent to my work address. However, companies that charged sales taxes on online purchases always calculated the tax on the higher rate at my billing address rather than the lower rate at the delivery address.

    As for the jerks at UPS, I called and asked them why an unseen book had to be signed for and received by an adult at home -- the usual option to just sign the back of the non-delivery tag to release them from responsibility was not offered. They said it was a driver decision. If a particular driver found there were an unusual number of losses because someone was following him around and stealing packages, he could decide on the spot to make everyone receive all their packages in person.

    Then the idiots said they could re-deliver the following day if I would stay home from work. I told them they could stuff that idea, too.

    Their next offer was that I could pick it up at their office after I got off work. I pointed out that I left for work before they opened and got home after they closed and they were closed on Saturday and Sunday. They had no more suggestions except for them to send it back to Amazon after three useless delivery attempts.

    To make up for their lack of imagination, I told them they could damned well put it back on a trruck and divert the delivery to my work address thirty miles from home. They thought that was quite the novel solution and complied.

    In an even more bizarre event, my ex was getting DSL and the router was to be sent to her home some thirty miles south. She got a phone call that the delivery guy had been unable to find her address. Well, yeah -- she lived on a short street, about six blocks long. Some twenty years before, the state had put a freeway through, leaving two blocks on either side of the freeway. Apparently UPS had not gotten around to updating their maps in twenty years, then got on the wrong side and found a freeway in their path. Since I was going to install it for her, I called them and they refused to let me give them directions on exactly how to get to her house. It seems the drivers were so smart they didn't need directions. Then they gave me the same guff about picking it up at their offices. I told them the same thing about being open only during her work hours. Then I asked them to divert the shipment to the UPS office a couple of blocks from where she worked. No dice -- THEY DIDN'T HAVE THE ADDRESS OF THEIR OTHER OFFICE AND COULDN'T LOOK IT UP!!! Holy Jesus, these guys lied worse than anyone in the Bush administration. So I again said to divert it to my own home address, thirty miles away and they were happy to do the extra work for us.

    The truly weird ending was that, after all their crap, I happened to go to her house the following day to receive some furniture to put it into her garage. I opened the screen door at the front of the house and the router box fell out from the screen and front doors.

    These guys give a whole new meaning to the word "dorks".

    Maybe the feds should apply a flat rate to all sales, and then divide those monies up to all states based on population.

    If I felt it were worth it and tried really hard, I could possibly think up a dumber way to apportion the tax than basing it on population, which bears absolutely no relationship to online sales.

  81. Re:Tax digital downloads and amil order products? by drinkypoo · · Score: 1

    I'd rather cut spending FIRST....I think we could shed a LOT of cruft, before we actually need to raise taxes any more.

    We don't have to raise taxes, all we have to do is eliminate tax cuts for the rich. The easiest way to do this is to simply institute a flat tax; manipulation of inflation is enough to prevent hoarding of cash. It's not the only way, though; Just simplify the tax code, as Bush promised to do (didn't the tax code get about four times longer under his watch?)

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  82. Re:Tax digital downloads and mail order products? by rtrifts · · Score: 1

    Your understanding is incorrect. PST is technically required in all case to be remitted by the taxpayer. That's the theory. It rarely is. Collection of PST is enforced, however, by CCRA if the purchase crosses the US/Canadian border. It is otherwise on a corss-provincial sale if the product must be registered (i.e., a car).

    The liability to pay PAT depends upon the residency of the purchaser - not where it is bought. It is a consumption tax. If it is consumed here, it is to be paid here.

    --
    .Robert
  83. Re:So, are the retailers going to report these sal by Byzantine · · Score: 1

    I'm not sure how they'd enforce it, but according to the language in the bill, if you're a MS resident, the tax applies regardless of where you happen to be when you make the purchase.

  84. Re:Tax digital downloads and mail order products? by rtrifts · · Score: 0

    The Civil War was over economics now? Revisionist history, indeed.

    It was about slavery. It was *always* about slavery. Absent that key factor, there would have been no secession and no Civil War.

    Marxist analysis of historical conflicts on an macro-economic level is usually a helpful analytical tool. But it's *just a tool*. It does not explain cause and effect - and it rarely explains passions and hatreds that lead to civil war.

    Charles and Mary Beard got it wrong.

    --
    .Robert
  85. The other option by Leuf · · Score: 1

    Say, you've got some money up there in Canada, don't you? And trees, we'll probably be needing some more of those by then. It's just been too damn cold up there to bother annexing you, but we've been working on that. Remember we have a habit of taking any land between us and an ocean, and there's one opening up above you.

    1. Re:The other option by rtrifts · · Score: 1

      While I am sure that adding Canada to the USA would fulfill the longheld dreams of the 54-40 or fight lobby, I pretty sure the Republicans would prefer a second Civil War before they would let Canada become a part of the USA.

      Seeing as the addition of 36 million people and seven or so states to the Senate which would vote Democrat as a block for the next 100 years would permanently shift the balance of power in Washington and make the Republicans the party of irrelevant and perpetual opposition, my guess is that those who are prone to military expansion in the USA might think long and very hard before annexing 30 million voters who believe in evolution, think evangelical Christianity is a joke and aren't scared by the word "socialism". Worse, a majority of 'em think gay marriage is no big frikkin deal and would say so - loudly and repatedly and without shame, whenever asked. (And even when they aren't asked, too.)

      They'll rejoice in the Northeast and Pacific Norhwest. They'll chisel statues and plan parade routes in Vermont, I'm sure. But how about, say, Oklahoma, Idaho, Texas and Utah? I'm guessing the Canadian Invasion and Annexation War Plan is going to be a REAL tough sell in those parts of the USA.

      We're most definitely NOT the droids they are looking for. :)

      --
      .Robert
  86. Re:So, are the retailers going to report these sal by Anonymous Coward · · Score: 0

    Some people are honest still. My state has a use tax. So, when I buy from an online retailer, one that doesn't have a presence in my state, it's up to me to file and pay the tax, based on shipping address, to my state DOR. Although they'd probably never know if I just didn't pay it. Their minor purchases.

    What is the difference between buying software online versus buying the package in a store? Not much really. Now, if they were to tax "subscriptions" in which gives you the ability to listen to, but not save, something, that may be another case entirely.

  87. uuuuuuuuurgggh! by Anonymous Coward · · Score: 0

    Cowboy Neal, is that you? Congratulations, you've made Goatse seem respectable.

  88. Re:Tax digital downloads and mail order products? by Anonymous Coward · · Score: 0

    Slaves are cheap labor.

  89. Tax THIS..... by IHC+Navistar · · Score: 1

    Give me a couple bran muffins, a loaf of bread, and a bottle of soda, and I'll give them a download they can tax all they want.

    "I got your taxes RIGHT HERE, pal....."

    --
    Knowing Google's lust for data collection, the Soviet Union is still alive and well inside the psyche of Sergey Brin....
  90. OK.... by Fuzzypig · · Score: 1

    Now if I download something slightly dodgy, you make sure the money goes to the company concerned so I don't get dragged of to court to pay the **AA's!

    No didn't think so, it's going the way of all taxes. To pay for that government official's house repairs or free trip to Bermuda on one of those "assess if they do things the same as us" type of trips!

    --
    Windows guys please stop pissing on everyone and the Linux guys stop pissing in the wind, hoping to hit Windows guys!
  91. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    While you're correct in that Canada does have troops in Afganistan, to imply Western Europe isn't is just as ignorant.

    http://en.wikipedia.org/wiki/War_in_Afghanistan_(2001%E2%80%93present)

    You'll see that the UK and Germany individually are providing more troops than Canada and that's before including all the other European countries. Canada's troop count is more inline with France's contribution. So that's 3 countries doing as much if not more than Canada.

  92. Re:Tax digital downloads and amil order products? by cayenne8 · · Score: 1
    "We don't have to raise taxes, all we have to do is eliminate tax cuts for the rich. The easiest way to do this is to simply institute a flat tax; manipulation of inflation is enough to prevent hoarding of cash. It's not the only way, though; Just simplify the tax code, as Bush promised to do (didn't the tax code get about four times longer under his watch?)"

    While I do support a flat tax or something like the FairTax....I'm not so much in thinking soaking the rich is the mindset we should have...especially nowdays, with the definition of 'rich' getting lower and lower.

    The top like what 10% or the money makers in the US already pay abou 90% of the taxes....how much more do you soak them before it becomes a negative incentive to try to succeed?

    I was looking at my paycheck...and I'm FAR from rich (I'm back on W2 hourly for now)...with fed, state and employment taxes...'m at a freaking 33% tax rate?!?! Add on local sales taxes and what have you...and that really soaks up my paycheck.

    Frankly, I'd be happy with any system that let me pay a flat 17% or so tax rate.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  93. Re:Tax digital downloads and amil order products? by Attila+Dimedici · · Score: 1

    They attacked you - not us. Mainly because of shit you do and have done - and NOT because of some shit we do and have done.

    Really? I didn't know that Canada had implemented Sharia law. The people who attacked the U.S. did so because the U.S. is not muslim.

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  94. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    You simply will not have a *choice* but to increase taxes in the USA to at least Canadian and possibly Western European levels if you don't deal with it soon enough.

    Eat my ass -- when the US provides womb-to-tomb medical care and all the other benefits like the rest of these places, I'll give a moment's consideration to your solution.

    Otherwise your proposition is nothing more than social engineering at its worst.

  95. Only if you're poor by Anonymous Coward · · Score: 0

    The rich have enough money that paying 90% tax leaves plenty of money for living.

  96. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    You almost had me...until you didn't end it with 'eh', comrade.

  97. Re:Tax digital downloads and amil order products? by vertinox · · Score: 1

    You simply will not have a *choice* but to increase taxes in the USA to at least Canadian and possibly Western European levels if you don't deal with it soon enough. (My bet - you won't deal with it soon enough. Americans are nutty when it comes to taxes.) You'll put it off and put it off and then put it off somemore until there is no wiggle room left at all. And then you will point fingers at your politicians - instead of you the voters - which is *precisely* where the blame will lie.

    I dunno. Unless someone provides a alternative currency the rest of the world is stuck with the USD and its inflationary policies.

    You may say the US needs to raise taxes, but taxes decreases inflation and spurrs deflation so perhaps the lack of taxes is what is currently needed. The debt could go on forever (as long as no one provides an alternative currency) and not really hurt American citizens.

    Of course if China decides one day that it wants to let its currency float and switch from a manufacturing to a service and management society, then we'll have problems.

    --
    "I am the king of the Romans, and am superior to rules of grammar!"
    -Sigismund, Holy Roman Emperor (1368-1437)
  98. Re:Tax Evasion? -- FOSS and Imputed Income by deck · · Score: 1

    This has been done in the past and there are people who would like to try this again. Imputed income is money that you never saw but they claim that you received the benefit of. To give an example, there was an attempt in the early 1990's by the US Congress to chrage people for imputed income on their mortgages. If the taxing authority (IRS) determined that your house payment was less than what the going rate for rent in your neighborhood was, they imputed that the difference was income on which you would be taxed. To put numbers to this, if you have $1000 a month house payments and houses in your area lease for $1500 a month you have an imputed income of $500 a month. At the end of the year they tag an additional, imaginary $6000 on your annual income on which they want real money paid for taxes. This idea could be applied to sales/use taxes for goods received.

    Now move this to software. If the MSRP of MS Office is $600 (I don't have an exact number) then you are imputed to have earned $600 if you download OpenOffice. Therefore you own sales tax on $600 dollars even though you didn't pay any money. That would be about $50 here in Texas that you owe.

    They can dream up about any way to gain tax revenue.

  99. Mississippi taxes food and that's disgusting by Anonymous Coward · · Score: 0

    They tax food because they're a poor state with a conservative government and a lot of residents can't afford much else besides food and housing.

    I say tax the digital downloads and get rid of the tax on food.

  100. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    America has never been terribly rational about taxes and that it not going to change.

    Typical comment of an intellect ossified by ideology. *Your* view on taxes is the only possible one, right? Get out of your little bubble once in a while and learn there's many different ways of doing things.

  101. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    Thank you. Seriously. Thank you.

  102. Re:Tax digital downloads and amil order products? by drinkypoo · · Score: 1

    The top like what 10% or the money makers in the US already pay abou 90% of the taxes....how much more do you soak them before it becomes a negative incentive to try to succeed?

    You do not have a right to profit.

    Frankly, I'd be happy with any system that let me pay a flat 17% or so tax rate.

    I would be in favor of a flat tax as well.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  103. Re:Tax digital downloads and amil order products? by dfm3 · · Score: 1

    Believe it or not, the sun still comes up every morning

    What part of Canada are we talking about? Not in the winter if you live above the Arctic Circle, it doesn't. :P

  104. Re:Tax digital downloads and amil order products? by Calithulu · · Score: 1

    They attacked you - not us. Mainly because of shit you do and have done - and NOT because of some shit we do and have done.

    Really? I didn't know that Canada had implemented Sharia law. The people who attacked the U.S. did so because the U.S. is not muslim.

    Well, that and because the West (including the US) has been a scapegoat for the hardships that those people have faced for years. To be fair there is some truth there. During the Cold War we spent a great deal of time in the region screwing around. Take a loot at Kermit Roosevelt, Jr and Operation Ajax for an example. Never-the-less, the "enemy" that those people were attacking was not the US. It is the entire Western World, Canada included and any Muslim that dares to have even a slightly differing view than their extremist one.

  105. Two Words by Anonymous Coward · · Score: 0

    Tea Party. Here is comes again... :-)

  106. Can I use... (FAQ suggestion) by atcroft · · Score: 1

    Can I use my iTunes gift card to pay the tax?

  107. Who is Mississippi Bill? by digitalgiblet · · Score: 1

    Who is this "Mississippi Bill" person, and why does he thing he can tax things?

    If he can do then so can I. I want to tax stuff too. First thing I want to tax is "People who don't know when something is a joke".

  108. Re:Tax digital downloads and amil order products? by cayenne8 · · Score: 1
    "You do not have a right to profit."

    But in the US...I thought you pretty much were 'born' with all rights, excepted by those curtailed or modified by law.

    If that's true...so far, there is no law against profit, so it must be a right everyone has, no?

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  109. Interstate Commerce Clause and sanity? by Anonymous Coward · · Score: 0

    I am a Mississippian. I am a software developer.

    This bill both shames and horrifies me.

    1: interstate commerce clause of the US constitution. HELLO!

    2: No state has no jurisdiction to force businesses in other states to pay its taxes.

    3: 7% of gross income of the business, not gross income of sales in the state? So all it takes is 15 states to enact a similar law to force every software company sending software to those states to pay 105% of gross income in state taxes.

    In the ever increasingly likely event that the America and Mississippi have gone sufficiently insane to allow this...
    This will either end the sale of software in the state(s) that enact this law.

    4: the degree of ignorance and stupidity that this bill displays fills me with rage.

  110. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    Thank you.

    Nathan

  111. Not that bad... by randalotto · · Score: 1

    I don't see why everyone is so up in arms about a luxury tax. No one blinks when you have to pay extra for that new GulfStream jet. Taxing computer users in Mississippi is the same sort of thing...

  112. Re:Tax digital downloads and amil order products? by gd2shoe · · Score: 1

    Note, by the way, that Ms, like pretty much all the States (and unlike the Federal government), are required to balance their budgets.

    You CLEARLY don't live in California.

    We require our politicians to pass a balanced budget. They don't. The republican party here took a valiant stand (I think it was last year) and absolutely refused to pass the budget until it was at least balanced against made-up income projections. They didn't even mince words to the public. The democrats absolutely refused to pass a constitutional budget, even after that disgusting idea was proposed. (The states fiscal problems aren't just in the Democrat party, but this one seems to be centered there.) The budget hasn't been balanced for many years. We are in a dire deficit.

    Furthermore, we require our politicians to pass a budget on time. The last several years have been unconstitutionally (and inexcusably) late.

    So yes, we're among the states "required to balance their budgets". If only it worked that way.

    (CA has, or at least had, the 5th largest economy in the world. Now if only we could get rid of these filthy, corrupt, crooked, state ruining, power hungry jerks!)

    --
    I won't join Slashcott. OTOH, If Beta goes live, I just won't be back until it's fixed. Sorry Dice.
  113. Re:Inevitable.... My response was in response by davidsyes · · Score: 1

    to the person responding to you. S/he made a comment, and it probably had an effect on scoring of your comment. Slashdot, as it currently functions, has an asshat way of allowing -- without citations or proof -- other users to just do hit-and-run. Neither a freaking low account number nor high number of "esteemed" posts should be qualification for anyone to knock down someone's scores. It should take an odd number, like in voting, to tip one way or the other. It would be nice if the currently broken /. system "hunted" for votes when a comment is downgraded. Even up-scored comments need to be reigned in, too. But, as i said numerous times in the past, /. is irrefutably, and incorrigibly broken as regards the submission of stories and as regards scoring of comments.

    --
    Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
  114. Re:Tax digital downloads and amil order products? by Rich0 · · Score: 1

    That is correct, although nobody has pointed out the 10th ammendment (for what little power it still has left). While a federal law trumps state law, if the federal constitution makes the law illegal then it has no power at all. In theory federal laws can only cover areas provided for in the constitution. Unfortunately, one of those areas is regulation of interstate commerce, and that has been used to justify federal laws for just about anything...

  115. Re:Tax Evasion? -- FOSS and Imputed Income by Anonymous Coward · · Score: 0

    Funny, it's seems obvious this is designed to catch people using rent deals to hide income. Which is something no one I've met would thing is fair, but you never mention it. You may hate taxes, we all do, but that doesn't mean you need to become so biased you can't talk in a fairly.

  116. What? by Prysorra · · Score: 1

    >But seriously, people like to justify property by making it some natural right.

    But seriously, people like to justify life itself by making it some natural right. Obviously, if someone could better use the oxygen you breathe, by all means, we should take it from you and give it to him.

    Property is survival. A human depends on secure access to calories, and the land we grow wheat upon is now our mechanism of survival. The transition to ordered society based around agriculture is permanent.

    > we don't give animals property rights to their habitats

    What? And so what are we citizens to our government? Animals lucky to be allowed to live? Government is a human social construct designed to govern humans, nothing more nothing less. Perhaps you're arguing we treat them like second-class citizens? Slaves even? Weird, considering "protected" endangered species may as well have "equal" rights to us humans.

    So much for a government of, for, and by the people.

    If property is theft, theft from whom? Your town? Your country?

    How can one steal what isn't owned?

    Oh, and it's Proudhon, not Marx.

    1. Re:What? by who+knows+my+name · · Score: 1

      What? And so what are we citizens to our government? Animals lucky to be allowed to live? Government is a human social construct designed to govern humans, nothing more nothing less. Perhaps you're arguing we treat them like second-class citizens? Slaves even? Weird, considering "protected" endangered species may as well have "equal" rights to us humans.

      I'm arguing quite the opposite. We all started with shared natural resources, but we firstly only grant access to our own species; inherently speciesist.

      Now, you may argue that speciesism is perfectly moral. Well ok, if I accept that could be the case, then it really begs the question of why intraspecies discrimination should be tolerated. Using your example of shared oxygen, nobody can deserve it more than another person, so making it the 'property' of someone is theft from everyone else. Quite clearly we can steal what isn't owned by claiming some 'natural' ownership.

      I am quite aware of the argument that property has to exist for theft to be possible. But I am not arguing against the existence of property, I am merely refuting the assumption that we somehow have a 'right' to it.

      --
      Nothing to see here.
    2. Re:What? by shaper · · Score: 1

      Umm, dude (or dudette), I'm trying really hard not to react: speciesist? speciesism? You have got to be trolling me.

    3. Re:What? by who+knows+my+name · · Score: 1

      I am utterly serious: http://en.wikipedia.org/wiki/Speciesism . The term has been around since at least the seventies, and really morally has similar considerations as vegetarianism and animal rights. Some animals (primates in particular) are highly intelligent; do we give more rights to a stupid human over a more intelligent animal? That is speciesism at it's core; and possibly also the notion that we can 'own' another sentient being - slavery perhaps?

      --
      Nothing to see here.
  117. Do bribes to politicians count as "sales"? by SL+Baur · · Score: 1

    You missed the key point of the OP. Al Capone was prosecuted under the stipulation you quoted because that's INCOME tax. The OP specially asked about law relating to SALES tax.

    Granted, that is correct. I did indeed misread that. The problem is the mixed jurisdictions here. Sales tax is local not federal and Al Capone was prosecuted under federal laws. Also, stolen property is conceptually (unearned) income in the same way that Gift Taxes are applied as income coming from gifts.

    Although US federal income taxes apply to the profits from the sales of illegal drugs (and stolen property), I do not believe I've ever heard of States, etc. going after "lost" sales taxes from those sales. Given the way things are going in California, Arnold could possibly lead the way in that.

    Another interesting question is, do bribes to public officials count as sales and should sales tax apply? I think so. It's not called "buying" for nothing. And given the current climate, should you pay capital gains tax on a bribe to a City Councilman who later gets elected Mayor? Would the shame of being treated as an inanimate commodity bring integrity back to the governments of the world? Probably not, alas.

  118. Digital TV & Radio? by Anonymous Coward · · Score: 0

    "electrically transferred digital products"? What, like digital TV? Cable TV? Satellite Radio? That *will* be interesting! (IHNRTFA) (I Have Not Read The Funny Article)

  119. Re:Tax digital downloads and amil order products? by Anonymous Coward · · Score: 0

    Last I checked, we've spent $15,000,000,000.00 on a war in Afghanistan and lost a couple hundred Canadian soldier's **lives** there fighting a war because of some nutbars who attacked AMERICA. They attacked you - not us. Mainly because of shit you do and have done - and NOT because of some shit we do and have done.

    We fairly clear on that part?

    Still, given the audacity of the motherfuckers in attacking our closest allies and best friends, spending all that blood and treasure to assist America in kicking their asses was the least we could do for our best friends. And unlike most of the the Western Europeans, we actually put our guys in harm's way in Afghanistan. Our troops are there to fight. Not to be stationed in a base with orders not to fight and just fly a flag and call it "helping".

    We fairly clear on that part too?

    Still, that's the least Canada could do, given 9/11.

    The least you could do, otoh, might be to maybe acknowledge that and say thank you (and sorry for making the war unwinnable and your sacrifice meaningless with that second front in Iraq thing. Real sorry about that guys.)

    Just sayin'.

    In the case of Iraq, You coulda / shoulda said No.
    It was/is a illegal war in all respects. Started by an egomaniac with a thorn in his arse, and an oily film of greed in his eyes.
    Yes, I heard the 'You're either with us, or against us" crap. Doesn't make it right.

    But since our Northern neighbors are there, and helping, no matter the pretense, I for one do sincerely Thank You for your Nations sacrifice in the face of fear, uncertainty and doubt.
    Thank You, Canada.

    So, what does any of this have to do with digital taxes in Mississippi again ?

  120. Re:Tax digital downloads and amil order products? by ibbey · · Score: 1

    The top like what 10% or the money makers in the US already pay abou 90% of the taxes

    Well, yes, that may be true, but the top 10% of money makers make something like 98% of the money. If you actually break it down by percentage of income earned to percentage of taxes paid, it quickly becomes clear that the top wage earners actually pay a lower percentage of their income to taxes than do the lower incomes. And that doesn't even include the billions of dollars of tax-free income that are 'earned' by the 'overseas' (read: Cayman Islands) branches of US corporations. In fact over a quarter of large US corporations (>$250,000,000 in assets or >$50,000,000 in gross receipts) paid no US income taxes in 2005. About two-thirds of U.S. companies and foreign firms doing business in this country paid no federal income taxes from 1998 to 2005. Sure some of those companies legitimately lost money, but hard to believe they all did.

    The reality is that while the rich like to complain about their high tax rate, few people in that top tax bracket actually pay anything close to the amount they owe. When you earn a million or more a year, you can afford to hire a very good accountant. You complain about your high taxes paid, but remember, if the rich actually paid the same percentage you did, everyone's tax rate would go down.