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Khali Henderson
Group Editor, Telecom Division and Editor in Chief, PHONE+
khenderson@vpico.com
Cara Sievers
Assistant Editor,
csievers@vpico.com
Kelly Teal
Business and Regulatory Editor,
kteal@vpico.com 
 
 

Time for Boston Tea Party 2.0?
04/14/2008 13:18

Kelly Teal

New York’s state legislature has approved Internet taxation, a move that does more than set a precedent for other revenue-greedy state lawmakers.

The bill – expected to be signed by new governor David Paterson – requires many online retailers to collect sales tax on purchases shipped to New York.

The law will spur copycat activity and I resent it all on an idealistic level. You see, New York’s bill further erodes the Internet as the last untouchable frontier – the next step in the erosion as companies like Comcast already test the boundaries.

Many of us, for years, have viewed the Web as a bastion for uncensored thought and commerce. For the promise that globally disseminated ideas can free people from tyranny – think China and Cuba. For the ability to operate small businesses, even if just a modest income means owning one’s own life instead of bowing to the Corporate Gods. For the small, irreplaceable thrill of viewing images of places I’ll probably never see, like the Butterfly Valley in Turkey.

But for every action, there is that dreaded equal and opposite reaction. Internet taxation became inevitable as state lawmakers watched the Web flourish and they started estimating the millions of dollars they think they’re owed. Like we don’t pay enough taxes every day for gas, food, real estate, cars, phones, utilities. And hell, States, as the recession kicks in, just nickel and dime us while we’re down, why don’t you? (I’m not bitter.)

State-level attempts to tax the Net also grew unavoidable the more Congress extended its Internet tax moratorium. The current one lasts for seven years. New York’s effort to tax the Internet is sure to go to court, so who knows when, or if, residents will pay additional money on their purchases.

I hope the taxation efforts fail. Most of us already pay our share – fair or not – of taxes across the board. Plus, the more our elected officials try to own our wallets, the less inclined we are to spend. That’s no recipe for digging out of a recession. But more to the point, back to that idealistic level, I am tired of watching money always win. As soon as something proves even the least bit financially promising, someone has to corrupt its potential and prospects with monetary demands.

Maybe it’s time for an Internet Tea Party.



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