Re: "S" is for Sneaky: The Slimy Path to Phone and Internet Taxes

[David Farber <dfarber () cs cmu edu>]

Begin forwarded message:

From: Lauren Weinstein <lauren () vortex com>
Date: January 2, 2008 5:19:59 PM EST
To: dave () farber net
Cc: lauren () vortex com, touch () isi edu
Subject: Re: [IP] Re: "S" is for Sneaky: The Slimy Path to Phone and  
Internet Taxes


This is precisely (one aspect) that makes the L.A. measure so
insidious, as I noted in my piece.  The proposal's pro argument says
that it doesn't create an Internet tax.  But that's only because
federal law currently prohibits such a tax.  At such a time as the
federal moratorium isn't renewed, the L.A. telecom tax (if approved
as worded) would *automatically* and permanently expand to cover
virtually all VoIP, Internet access services, etc. -- it's *very*
broadly written to cover data communications services ("except as
prohibited by other laws").  It's a stealth Internet tax, waiting
in the background like a trap.

Another nasty aspect of the proposal is that it's titled to try
entice voters to say "yes" for a lowering of the phone tax from 10%
to 9%, when in reality if they vote the proposal down the phone tax
(and stealth Internet tax) would likely vanish entirely, since
courts have already ruled the tax *illegal* without voter approval.

This in fact is the only reason that the city lowered the proposal
from 10% to 9%, so that they could put it on the ballot as a tax
"reduction" -- and hope that people would just vote based
on "reduction" in the title and not realize that a "no" vote could lead
to a 0% "tax" instead.

--Lauren--
Lauren Weinstein
lauren () vortex com or lauren () pfir org
Tel: +1 (818) 225-2800
http://www.pfir.org/lauren
Co-Founder, PFIR
  - People For Internet Responsibility - http://www.pfir.org
Co-Founder, NNSquad
  - Network Neutrality Squad - http://www.nnsquad.org
Founder, PRIVACY Forum - http://www.vortex.com
Member, ACM Committee on Computers and Public Policy
Lauren's Blog: http://lauren.vortex.com

- - -

> ________________________________________
> From: Joe Touch [touch () ISI EDU]
> Sent: Wednesday, January 02, 2008 3:15 PM
> To: David Farber
> Subject: Re: [IP] "S" is for Sneaky: The Slimy Path to Phone and  
> Internet Taxes
>
> Dave,
>
> Internet access isn't taxable by federal law:
> http://en.wikipedia.org/wiki/Internet_Tax_Freedom_Act
>
> That law was extended on Oct 31, 2007 for another 7 years:
> http://www.whitehouse.gov/news/releases/2007/10/20071031-17.html
>
> FYI, here's a pointer to the proposed measure, which is on the LA city
> ballot:
> http://www.smartvoter.org/2008/02/05/ca/la/meas/S/
>
> I.e., the current state is that there is no Internet tax, and will be
> none for 7 more years. It'd be useful for the feds to make that law
> permanent, but fighting this at the local level seems futile by
> comparison, IMO.
>
> Joe
David Farber wrote:
> > ________________________________________
> > From: Lauren Weinstein [lauren () vortex com]
> > Sent: Wednesday, January 02, 2008 12:48 AM
> > To: David Farber
> > Cc: lauren () vortex com
> > Subject: "S" is for Sneaky: The Slimy Path to Phone and Internet  
> > Taxes
> >
> >        "S" is for Sneaky: The Slimy Path to Phone and Internet Taxes
> >
> >                http://lauren.vortex.com/archive/000350.html
> >
> >
> > Greetings and Happy New Year!  If you've ever wondered how low some
> > government officials might sink to try push through a tax that they
> > know is unpopular -- such as on telephone services and the Internet
> > for example -- you need look no further than the upcoming
> > presidential primary ballot here in L.A. for this coming February
> > 5th.
> >
> > Rushed onto the ballet is a little gem called Proposition S.  I
> > don't much mind when tax proposals are presented in an honest
> > manner, but Proposition S is ... well ... "instructive" is one word
> > that comes to mind.  The other words I might choose aren't
> > appropriate for this venue.
> >
> > While the outcome of "S" will only directly affect those living in
> > Los Angeles, anyone might still wish to listen to the very short
> > audio piece (well under two minutes in length) that I've put
> > together as a hopefully useful -- and for me, emotionally
> > cathartic -- gesture toward the goal of a well-informed electorate.
> >
> > After all, you never know when your own local politicos might try
> > the same ballot stunt in your neighborhood.
> >
> > The audio presentation is called:
> >
> > "'S' is for Sneaky: L.A.'s Telephone & Internet Tax Proposition"
> >
> > MP3 Audio Version:
> > http://lauren.vortex.com/s-is-for-sneaky.mp3
> >
> > YouTube Version (Audio Only):
> > http://lauren.vortex.com/sneaky-prop-s-youtube
> >
> > Proposition S would almost be funny, if it wasn't such an  
> > embarrassment!
> >
> > --Lauren--
> > Lauren Weinstein
> > lauren () vortex com or lauren () pfir org
> > Tel: +1 (818) 225-2800
> > http://www.pfir.org/lauren
> > Co-Founder, PFIR
> >   - People For Internet Responsibility - http://www.pfir.org
> > Co-Founder, NNSquad
> >   - Network Neutrality Squad - http://www.nnsquad.org
> > Founder, PRIVACY Forum - http://www.vortex.com
> > Member, ACM Committee on Computers and Public Policy
> > Lauren's Blog: http://lauren.vortex.com
> >
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