Taxing the Internet. Measure D(umb) in Pasadena.

By Mike Spence | 01/28/08 | 10:31 AM EDT | 0 Comments

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One of the newer scams being promoted by City Councils in California is "modernizing" utility taxes. Utility taxes need to be approved by voters due to changes in state and federal laws. Not missing a beat, city councils and the bureaucracies that love them are putting them on the ballot.


A look a Measure D on the February 5th ballot shows how the scheme works. City Council put the tax on the ballot and either keep the rate the same or lower it. Then they expand the tax to cover cell phones and other technological advances that weren't around when the tax was first implemented. The third part is to talk about the "vital" services that will be cut if it doesn't pass. Use pictures of cops, firefighters and little puppies and you see the campaign theme. Etc.

The Pasadena folks are especially bold. Not limiting themselves to taxing you every time you flush, turn on a light or use your landline, they actually expand the tax to any transmission of "voice, data, audio, video or any other information".


See. When I went of to college, I stood in line over an hour to get a phone hooked up in my dorm room. Now you don't need any of that plus you can digitally download, text message or email almost anything.  The leaders of Pasadena just can't let that go untaxed.

Let's be honest. Right now there is a federal moratorium on taxing the Internet. It is scheduled to expire several years in the future. If that happens Pasadena reaps millions of extra dough without a vote of the people.

Especially, galling is the fact that Pasadena had a $26 million surplus last year. The new tax will net $10 million. If you do the math the surplus go to $16 million and no one losses a "vital" service.

Measure D is hoping the voters are Dumb.



 

TAGS: Internet Tax, Measure D, Pasadena

 

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