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Internet Taxes

I know most people on this forum don't play MMORPGS, but now European users are being charged VAT for digital services.  http://eq.crgaming.com

I used to go with Earthlink as my ISP, then, I believe a state tax was put on Internet Services.  I was paying $24 a month unlimited access for Internet service.  No Thanks.  I switched to a local provider for $20 a month unlimited access.  Still overpriced, IMO, but a bit more reasonable.

Is this because of the budget crisis in most (US) states?
What other digital services can be taxed?
Should digital services be taxed?

Dave B.
Wednesday, July 02, 2003

When faced with a deficit, cut spending.
If that doesn't work, cut spending more.

Philo

Philo
Wednesday, July 02, 2003

And then when your infrastructure's crumbled and their are mobs rioting unchecked in the streets, go live under the sea.  There'll be no accusations, just friendly crustaceans under the sea. :^)

JP
Thursday, July 03, 2003

s/their are/there are/;

*shudder*

JP
Thursday, July 03, 2003

JP, I suggest that if the entire US Federal Department of Education went away, our infrastructure wouldn't crumble.

Our schools are run by counties with oversight by states. The Dept of Education is just for meddling.

Philo

Philo
Thursday, July 03, 2003

I agree with Philo, a good 30% of the US Federal Government is either worthless, overly wasteful, or borderline unconstitutional.

But yes, a lot of this has to do with the budget crisis that most US states are going though right now. Of course, most of that crisis is caused by unfunded mandates imposed by the federal government.

As for taxes on the internet in general, I do not like them very much. It is too hard to measure transactions on the internet, costly for businesses to implement them, and too easy for someone to get around them.

Marc
Thursday, July 03, 2003

I'm not sure what the topic has to do with US state budget problems.  The VAT mentioned is enforced by the EU, not the US or state govt.  The idea is to tax based on the location of the buyer rather than the location of the business, because US companies had a price advantage since they weren't subject to EU taxes.  It's the same in the US with online retailers.  You generally don't pay tax unless the company has an office in your state.  Some poeple are trying to change this

Mike McNertney
Thursday, July 03, 2003

I can see this going waaay off-topic....

I'm not saying that there all taxes are usefully used, Philo.  Just saying that spending cuts have a finite limit of efficacy.... 

Albeit in a very sarcastic way.

FWIW, I think that the EU is setting a dangerous precedent with regard to extra-territoriality.  I can't see how they expect to implement it with regard to non-multinationals.  I've ended up wondering if it's an attempt to create a bargaining position over something else entirely....

JP
Thursday, July 03, 2003

"EU is setting a dangerous precedent with regard to extra-territoriality."

It sounds like a Federal System.  Hmm, just like the US...

Grumpy Smurf
Thursday, July 03, 2003

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