Taxing the Internet

5/25/2007

by Thomas Costanzo

Many government officials are very concerned about the lack of taxing on the internet.  If they create a permanent moratorium on taxing the internet then we we won't be able to tax it forever.  This scares them.  The government knows they are going the way of the dinosaur and when they see the writing on the wall this deeply concerns them.  I mean god forbid they can't steal enough money from the people to protect them from us!  

The most critical time for a business is in the start up period.  This is usually the first 2 years of the business life.  During this time period is when 80% of all businesses fail.  A great deal of time by business owners is spent on taxes and regulation compliance to these government created problems.  This "taxes" the business significantly and this is time that is utterly wasted.  This time period is when the business needs to be selling and taking care of customers, instead it is spend dealing with the government.   

One of the reasons most business fail in this time period is because most business startups are under capitalized to begin with and has to expend money and more importantly TIME to set up the taxes. The list goes on and on: TIN number, Sales taxes, work mans compensation, figuring out all the correct formulas, how to fill out the forms correctly and working with a professionals or office help who can explain the maze of taxation.  This is TAXING on the business owners TIME. And this is when a business is at it's critical stage.  The Tax is one of time on the business, costs that need to be born by the customer at some point.  This is when businesses need to be engaged in SELLING not government compliance.  95% of ALL business startups fail after 5 years do you really think this is an accident?

A major time waster for new a new business is the compliance with all the governmental regulation.  This is just a way to LIMIT competition by established business increasing the burden born by new businesses.  This lines the governments pockets for doing NOTHING as well.  Think of the "TAX" as a commission paid by businesses to the government on every product they sell.  What does the government do to deserve this "COMMISSION", It's actually less than nothing.  If it were only nothing ie the business sells something and the government sticks it hand out for payment it wouldn't be so bad.  It's the fact the rules and regualtions are complicated, time consuming to fill out, and many times require a professional or additional office help to comply with.  Is there any wonder why many businesses don't operate here any more in the united States of America.  Its because the government has made the environment inhospitable to business.  Individuals still wanting to be in business and so where do they go a place with less regulation Mexico, China, India and THE INTERNET.

Think about the sales commission that can be generated by a real estate professional for the sales of a home.  The median price for a home in Maricopa county is about $260,000 which means that the 6% commission for the would be about $15,600 that comes out of the proceeds (your pocket if your selling the home) to pay the Real estate brokers.  Now the Realtors performed a service for you: they sold the home for you.  If you knew how to sell homes then you would have done it your self and saved the $15,600.

The government makes an even greater commission rate on a much larger pie than the Realtor did.  Doing this one everything that is sold, doing nothing for it in the process.  Think about all the transactions that occur in a single day in Arizona.   There are millions of them and the government gets a little "cut" of each one.  In Glendale and Fountain Hills Arizona that CUT is 10%! However I already know how to buy things and sell things why do we need this middle man, the government, to get a slice of everything that is bought and sold.  In 2004-2005 this was $8.9 billion!  I know this includes the income tax they also steal, it still great deal of money.  They make all that money for doing less than nothing.

Now because of the internet the politicians say are not getting their CUT.  They say they need to help the children,.  I say lets cut taxes so moms don't have to work.  They say we need more police .  I say quit stealing money from people through coercion and the crime rate will drop.  They say we need more to fight terroism and I say listen to Ron Paul and lets got out of these entanglements and quit occupying all these foreign countrys.  

What is never explained how they got the right to steal (tax) the money in the first place.  They reason is they don't have that right.  I know how they do it, they assumed they did and they just have GUNS, lots of them and bigger ones than you do.  This is really EXTORTION because if you don't pay the government comes in and shuts you down.  So what they don't beat your brains out or break you leg.  The premise is the same as a mafia, deprive a individual the ablity of making a living unless he complies.  That business person will hike up his prices to pay the thug or he folds and works for someone else who can or will.

Thomas Costanzo