As Americans stretched to pay the tax man this week, California Assemblyman Charles Calderon was working on the sly to institute a new digital tax. Such a move is not only short-sighted, but also could seriously harm the state’s competitiveness. It’s no secret that the digital economy is a key driver of California’s economic growth, so it is shocking that some political leaders seek to increase the regulatory and tax burden on the tech sector. In the short term, new taxes might help battle California’s massive $8 billion deficit. In the long term, however, the results would be disastrous.
The reason the Internet is so successful today is because the government has not controlled the Internet through the use to taxation. Once the government assumes a presence of the IRS on the web, we will see more jobs move over seas to avoid this type of control. I see it as another way for the rich politician to get more money out of the segment of population that already shoulders most of the tax burden. There are countless reasons to keep the NET tax free. The government has gained a freebie from the NET. They can put up their websites for the public to use and by the public using these Internet sites the government has been able to reduce its workforce and increase their accuracy of data input, thereby saving money. Then it gets wasted and no one in the government can tell us how many millions of dollars got lost.
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Tax Day Is Over, but Internet Tax Threats Loom
Posted by: Sonia Arrison April 18, 2008 04:00 AMAs Americans stretched to pay the tax man this week, California Assemblyman Charles Calderon was working on the sly to institute a new digital tax. Such a move is not only short-sighted, but also could seriously harm the state’s competitiveness. It’s no secret that the digital economy is a key driver of California’s economic growth, so it is shocking that some political leaders seek to increase the regulatory and tax burden on the tech sector. In the short term, new taxes might help battle California’s massive $8 billion deficit. In the long term, however, the results would be disastrous.