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Clocking Ticking Down on Taxes
by Andrew McCaskey
Taxing Time Is Here to Strangle Recovery PDF Print E-mail
Written by Andrew McCaskey
Thursday, 16 April 2009 21:46
The Clock Runs Out
It looks like the end of the road for buying goods through the internet without paying sales tax to someone. Principle (not to mention common sense) is headed for the door, but the reset recession guarantees that politicians at the state level will have the funds in their grasp. And if your objective is to strangle any sort of recovery in the cradle, you have found the chokehold. The only reason that the taxing of internet based commerce did not happen earlier was an insane level of conflicting and confusing rules and rulings at over 7000 taxing entities shamed Congress into application of some common sense. But with local tax revenues dropping by 6% on average, local politicians are eyeing everything that is not nailed down.
Combine this with the (remporarily rebuffed) Time Warner attempt to cap download bandwidth and crank up the price and you will see that short term advantage and expediency has not gone out of fashion. And with near-monopoly status in any given geography carriers such as Verizon, Comcast or Time Warner will bide their time and take another run at caps and price increases.
If you are living in a part of the US that has unemployment over 18% there are a few things that you realize quickly: The equity in your house built up over 24 years has been vaporized, and with 10% or more of the houses in your neighborhood in foreclosure, the chances of moving elsewhere are nil. You are, financially into your 201K plan instead of your 401K. Your job is gone and your neighbors as well.
In those situations, connectivity and the ability to compete on a nationwide basis selling products or bandwidth intensive services is your chance to earn a livelihood beyond the local geographic constraints. You might think that politicians would take note that the short term fix may not be the best in the long run. But you would be wrong.
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