VAT prices are directly computed into the price of the product you purchase. You get a receipt and it shows how much went towards the product and service, and how much went to the governemnt. Companies don't pay it at all.
You're assuming that a certain percentage of every taxed dollar (or in this case, W1000) goes to internet service providers, when the money could come from a specific tax, or from tax incentives both to domestic companies or from internationals.
Lastly, you also open a whole new argument about costs of the internet the minute taxes get thrown into the mix. If you wanted to really break things down, just how much have you and your famiy paid for your internet service? Your parents had been paying for all these new and cool communications technologies since the 1950's, way before they were commercially available.
I stated in another message that due to the structure of the Korean tax system, the cost of a broadband subsidy per taxed income is marginal at best given all the other governmental expenses on a 9.5% total tax rate.
Also, I would consider other facets to penetration besides percentage of population with internet in their homes, like countrywide infrastructure. Internet is ubiquitous in Korea, and in the States it's disproportional, concentrated in homes and offices. An example: the last time I was home, September 2003, I had only three internet options: Starbucks at the bank, Starbucks a mile down the road, and the adjacent Kinko's (and this is in an LA suburb). I would expect this to be worse once outside a major urban area. Now in Korea, I have ten at least ten PC rooms in within a five minute walk from my house.
There's nothing wrong with accepting that some things are better outside the ol' US of A, and there's also no need to justify this by arguing double-taxation or hidden costs. We aren't #1 in everything (cellular services immediately come to mind), so we don't need to be defensive by beating Koreans up for one of the few things they did right.
It's a little harder than that to computer since hi-speed PC rooms also pay for this service, and they're in more places than gas stations back home. And to be fair, internet in the States is still $30-$50 a month, as it has been for the past 5 years for the same quality of service. For the same $400/year you've been pumping into SBC, Roadrunner, or Verizon, you've had no improvement in the quality of service.
But take some solace in the fact that while Koreans have got it good in terms of speed, their content sucks.
I live in South Korea and pay $40 a month for 2.5 mbps bidirectionally. Income tax is 5%, and another 4% to their pension program (which Yanks get back when departing). Add another $30 a month for universal health care, and my monthly tax bill is $200. Considering that income tax also pays government employees, provides a military, subsidizes mass transit, education, and health care, and puts some poor old people to work, the cost of "subsidizing" the internet is marginal. It's cheaper and better here, Dude, hate to break your heart.
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You're assuming that a certain percentage of every taxed dollar (or in this case, W1000) goes to internet service providers, when the money could come from a specific tax, or from tax incentives both to domestic companies or from internationals.
Lastly, you also open a whole new argument about costs of the internet the minute taxes get thrown into the mix. If you wanted to really break things down, just how much have you and your famiy paid for your internet service? Your parents had been paying for all these new and cool communications technologies since the 1950's, way before they were commercially available.
Also, I would consider other facets to penetration besides percentage of population with internet in their homes, like countrywide infrastructure. Internet is ubiquitous in Korea, and in the States it's disproportional, concentrated in homes and offices. An example: the last time I was home, September 2003, I had only three internet options: Starbucks at the bank, Starbucks a mile down the road, and the adjacent Kinko's (and this is in an LA suburb). I would expect this to be worse once outside a major urban area. Now in Korea, I have ten at least ten PC rooms in within a five minute walk from my house.
There's nothing wrong with accepting that some things are better outside the ol' US of A, and there's also no need to justify this by arguing double-taxation or hidden costs. We aren't #1 in everything (cellular services immediately come to mind), so we don't need to be defensive by beating Koreans up for one of the few things they did right.
It's a little harder than that to computer since hi-speed PC rooms also pay for this service, and they're in more places than gas stations back home. And to be fair, internet in the States is still $30-$50 a month, as it has been for the past 5 years for the same quality of service. For the same $400/year you've been pumping into SBC, Roadrunner, or Verizon, you've had no improvement in the quality of service. But take some solace in the fact that while Koreans have got it good in terms of speed, their content sucks.
I live in South Korea and pay $40 a month for 2.5 mbps bidirectionally. Income tax is 5%, and another 4% to their pension program (which Yanks get back when departing). Add another $30 a month for universal health care, and my monthly tax bill is $200. Considering that income tax also pays government employees, provides a military, subsidizes mass transit, education, and health care, and puts some poor old people to work, the cost of "subsidizing" the internet is marginal. It's cheaper and better here, Dude, hate to break your heart.