California Takes A Last Swing At VoIP 182
JamesB writes "News.com's Ben Charny reports that two California cities want to tax Internet telephony. This news comes on the eve of the FCC ruling on whether federal regulations will preempt local ones."
OutSource it... (Score:5, Funny)
Re:OutSource it... (Score:3, Funny)
Re:OutSource it... (Score:4, Insightful)
Re:OutSource it... (Score:3)
Re:OutSource it... (Score:2)
But do you get an indian phone #? (Score:3, Insightful)
Re:But do you get an indian phone #? (Score:3, Interesting)
Re:OutSource it... (Score:2)
Good luck, Arnold! (Score:5, Insightful)
Besides, the minutes are so cheap, the government tax seekers may be in for a rude awakening when it dawns on them that even a tax as high as ten percent of one penny is still less than one penny.
It may have been a good idea if VOIP minutely rates compared to real phone rates. But the days of $80 phone calls are gone.
Re:Good luck, Arnold! (Score:2, Informative)
Re:Good luck, Arnold! (Score:4, Insightful)
Re:Good luck, Arnold! (Score:2)
Isn't that like charging $210k sales tax on a new $15k Hyundai? Seems a tad high to me and I live in Massachusetts.
Re:Good luck, Arnold! (Score:2)
Re:Good luck, Arnold! (Score:3, Funny)
LOL. No, but I've heard people are switching to weed. It's cheaper and not nearly as harmful. =)
Re:Good luck, Arnold! (Score:2)
What is the VAT (value-added tax) on a sale of Skype credits? Last I checked you could take a 25% hit on some purchases in the EU. Does it really make sense to purchase credits abroad? What is to prevent the state of California from entering into reciprocal tax agreements with foreign governments to exchange the data?
Re:Good luck, Arnold! (Score:2)
Nothing, but what if they tax based on where the web-server is located (e.g. if I as an Australian living in Australia locate my web-server in India and my customers get out of any Australian VOIP taxes) then they won't be able to engage in an agreement with EVERY single country that the web-server could be hosted on.
Re:Good luck, Arnold! (Score:2)
If you are an Australian marketing to Australians from within Australia itself, why the hell should it matter where you web server is housed? The scheme you suggest seems to me transparently fr
Re:Good luck, Arnold! (Score:2)
I am pretty sure that only the federal governemtn can make deals with foreign countries.
Re:Good luck, Arnold! (Score:2)
It may have been a good idea if VOIP minutely rates compared to real phone rates."
TFA:
"The cities, Burbank and El Monte, have asked dozens of Internet phone service providers to collect a monthly fee of about $1.40 from each subscriber"
Re:Good luck, Arnold! (Score:2)
So what, lots of folks using POTS don't pay by the minute either.
But what about VoIP? My VoIP goes over my cable connection, which are owned by my cable company. There is nothing public about my VoIP. The government has nothing to do with it. Taxing it would be silly. They have no business doing such. You can't just tax something because you feel like it.
Of course you can. In this instance, it could be called a sales tax or a value-added tax.
Re:Good luck, Arnold! (Score:2)
The people are speaking and thier saying get your hand out of my pocket to the government. They spend too much money anyways. An example of this was the tobaco lawsuite. It turned out not to be a settlment but rather a tax levied by the manunfactuers and passed to the state and l
What's in it for me? (Score:5, Insightful)
Let's cut to the chase. What will we get out of being taxed? Will the service be more reliable? Will I get service guarentees? Will my bill be even lower? What's in it for me, if you start taxing Internet Telephony?
Re:What's in it for me? (Score:4, Insightful)
You'll be allowed to continue using it.
Re:What's in it for me? (Score:3, Insightful)
Re:What's in it for me? (Score:2)
Re:What's in it for me? (Score:3, Insightful)
Re:What's in it for me? (Score:2, Informative)
Re:What's in it for me? (Score:3, Insightful)
-a currency that (hopefully) won't fluctuate wildly
-a justice system that deters and attempts to correct bad business practices.
-physical infrastructure (roads, etc)
there are of course others, but the main point I'm trying to make is that governments provide a little more than we give them cred
Re:What's in it for me? (Score:2)
Bigger government. We all want bigger government, right? If government isn't the solution to your problems, what is?
An alternative view (Score:5, Interesting)
IMHO - we need an overhaul of the tax system, I don't believe that it can be efficient to have dozens of different entities with the power to levy taxes. There's a cost to society, although it does keep all those lawyers and accountants employed.
Re:An alternative view (Score:4, Insightful)
In my area, it is paid out of property taxes, and that makes a good amount of sense. The more your property is worth, the more it is worth protecting it. Funding fire protection from sales tax, phone tax or internet taxes don't seemm quite fair.
Re:An alternative view (Score:2)
Re:An alternative view (Score:2)
PLEASE tell me "by voting", I need a good laugh today!
Re:An alternative view (Score:2, Insightful)
However, if you get together with a lot of people and raise a stink, you get your way.
Case in point: look at the uproar surrounding Janet Jackson at the superbowl. Everyone got fined because some people got up off their over-reactive arses and wrote a couple of letters to the FCC. Now, I'm guessing a lot of Americans could have cared less and didn't even see "the flash." In fact, I read something like 100,000 people wrote (and that is a very small minority compared to the popu
Re:An alternative view (Score:2)
With the nipple slip, the conservatives were handed a convient excuse to push through the agenda which they were already wanting to persue (namely, 'cleaning up' the airwaves).
Regarding corruption; politicians may (or they -more likely- may not) be interested in appearing as though they are doing something about it, but they're not really interested in doing anything substantial about it.
Re:An alternative view (Score:4, Insightful)
As time goes by, and as taxes increase (or new ones created), we are going to reach (or have reached) a point where taxes are no longer justified, where it costs less to hire a security firm to enforce laws, pay for healthcare out of your own pocket (cash), and send your kids to private school than it does to continue supporting the leviathon.
The US government was created to enforce negative rights (no murdering or stealing, essentially), not positive rights (take a little from these guys, give it to those guys, tell them it's for the public good).
And yet people say "But look at what you get for free*". Right, look a little closer. True, the service is free, and you are guaranteed service. But look a little closer: look at the kind of service you are guaranteed. If anyone ran a business this badly, they'd be run out of town!
We have half the US going all out for Canadian healthcare (it's free, universal, good*), and the other half wants nothing to do with it. Why? Because of what you get. If you have money (over a few thousand in the bank, which almost everyone can achieve), you can walk into any hospital and they will (figuratively) roll out the red carpet. You need a major surgery? You want the best people working on you? You got it. Pick and choose, ala carte. You don't like the snooty nurses or do not have confidence in your doctor? Go see another one. Under Canadian healthcare, money doesn't matter. You are placed in a queue. Works for some things, doesn't work for most things. And you have no say in your treatments. Kind of like HMOs, but it's the government, so you know they won't put lube on before they fuck you up the ass (decide it's too costly to keep you alive). But everyone is treated equally (unless you know someone on the board of directors), so everything is good*.
A man cannot serve two masters, so in this case: A doctor cannot serve you and the government (or an insurance company). He serves the man who pays the bills.
For whatever charges I may incur, I prefer being the master of my own healthcare. If I have cancer, I'll pay top dollar to rip the sucker out of me. If I do not have the money, I'll take out a loan, ask some friends, whatever it takes. But I will be the one who decides whether I should go with "less costly" treatments, whether I should be "made comfortable". I am not another worker of the State, I am not here to serve "the greater good", and not giving up my freedom or control over my life to a bunch of pompous assholes who sit on a committee, in the Senate, a thousand miles away, making life and death decisions for people whom they will never meet.
Re:An alternative view (Score:2)
Actually, we reached that point long ago. Fortunately, our system accepts taxpayer feedback and we are in for four years of tax cutting... BTW - the candidate that
Re:An alternative view (Score:2)
effect will be negative.
Re:An alternative view (Score:2)
a little strange (Score:3, Informative)
Re:a little strange (Score:3, Insightful)
Well in theory almost all power lies with the state. The Federal government is mostly limited to foreign policy, maintaining the defense of the nation, and regulating interactions between the different states. Of course that's just the theory that was layed out in the Constitution. The federal government has slowly expanded it's powers into other areas, which at one point ended up in a civil war as a number of states tries leaving the union. The 10th ammendment pretty clearly sums up the intentions pretty w
Re:a little strange (Score:3, Informative)
Article 1, Section 8.3:
To regulate commerce with foreign nations, and among the several States, and with the Indian tribes;
This tiny little section was used (and still is used) by the federal grovernment to get their grubby little paws into just above everything.
Re:a little strange (Score:4, Informative)
Re:a little strange (Score:3, Interesting)
Overall, the hierarchy of power is not as
If "local taxes" ever went where they were meant.. (Score:2)
Combine that with the fact that most people in the USA dont pay very much in taxes and you have the situation we are in now. Eventually you will reach the ideal state where Bill Gates and his buddies pay all the taxes. That is real cool until those folks say [in Cartman fashion] "screw you, I'm going [home/so
a lot strange (Score:2)
Well, in theory, we have a very clear distinction between federal powers and state powers. The states do whatever they want until the federal government finds a way to tax it or regulate it, and somehow fits it into the "commerce clause" of the US Constitution
In australia the government collects the taxes, which is distributed through to the states. The st
A lot strange (corrected post) (Score:2)
Well, in theory, we have a very clear distinction between federal powers and state powers. The states do whatever they want until the federal government finds a way to tax it or regulate it, and somehow fits it into the "commerce clause" of the US Constitution.
Given that the original framers of the Constitution designed the government to react slowly (henc
not surprising (Score:4, Insightful)
Right now people get twitchy about taxing internet technology for fear that they will look 'anti progress.' What we need is for the VOIP companies to fight the cities, and see where things go from there.
Of course, being in california will make things tough for those trying to fight the tax.
VoIP calls are a terrible burden on Government! (Score:5, Insightful)
What justifies this sort of taxation?
Taxes are fine win me, as long as it's to pay for legitimate services. But I have a hard time seeing what additional government serives VoIP users need to pay for.
I think this is just a case of government seeing another opportunity to use people.
Re:VoIP calls are a terrible burden on Government! (Score:2)
Let's assume you're VoIP only -- you long ago got rid of your landline phone, and with VoIP, since you sit at home all the time, you got rid of your cell phone, too. So now you're sitting there reading Slashdot and chatting with some other nerd over Skype, and you realize the grease from your frying pan flared up and your kitchen is on fire. You call 911, and.... but wait, you can't...
Re:VoIP calls are a terrible burden on Government! (Score:2)
But wait...you CAN!
See, the thing is, every phone line has to remain available for calls to 911...for free. So, I have my "emergency" phone that is always plugged into one phone jack for just such an emergency. What's the problem now?
Re:VoIP calls are a terrible burden on Government! (Score:2)
Who pays for this "free"? If the majority of the population of your state went VoIP, and didn't spend a dime with the RBOCs or the cell co's, where does that "free" money come from?
Re:VoIP calls are a terrible burden on Government! (Score:2)
Re:VoIP calls are a terrible burden on Government! (Score:3, Interesting)
yes, surely. but you see, when their taxes go down as you stop using a taxed service, they need to find extra income. they could tax the electricity more I suppose since that's used when you use voip or whatever, or they could tax you breathing, or tax you parking. it's just a political decision on who you tax the most(and as such 'luxury taxes' are popular, on alcohol, tobacco, etc, voip tax on businesses can be a way
Re:VoIP calls are a terrible burden on Government! (Score:2)
I prefer the "less corruption in the world, no need for big taxes" method.
Honestly I don't think that feeding the government more money will make them feel satiated. And as a matter of fact I would rather pay the same tax directly to whatever service they provide needs more money. That way at least it would be much clearer if the tax is actually required.
Diego Rey
Re:VoIP calls are a terrible burden on Government! (Score:2)
That's not the point of taxes on imports, and it's not the point of VoIP controls, either. The point is to influence the economy and make money in the process. Perhaps they have a reason to slow the adoption of VoIP.
Re:VoIP calls are a terrible burden on Government! (Score:2)
I voted against... (Score:4, Insightful)
Re:I voted against... (Score:2)
But why tax VOIP, isn't
Get a clue (Score:5, Insightful)
Re:Get a clue (Score:3)
The funny thing is, the FCC could increase taxes and regulation of internet services more generally, if they really want. They chose not to do this [consumersunion.org]. Instead, they're choosing to single out one category of internet service that is poorly defined and certain to be redefined as
Re:Get a clue (Score:5, Informative)
Skype isn't the issue and civilization isn't free (Score:2)
This is about stand alone VoIP like Vonage, which your mom could use without even knowing it.
If/when they get IP to IP cross network VoIP going, the POTS may be doomed and local governments will just have to find something else to tax, like say internet access, unless WiMAX makes that almost impossible too.
Still, left or right, you pret
Re:Skype isn't the issue and civilization isn't fr (Score:2)
Re:Get a clue (Score:2)
[0] if it even works, since we don't have the source, we can't tell.
Re:Get a clue (Score:2)
I think that the world would definitly be a safer place if they wiretapped all internet connections... everywhere!
Money has to come from someplace. (Score:3, Funny)
Re:Money has to come from someplace. (Score:2)
I'm still waiting.... (Score:5, Funny)
So, (Score:2)
So simple!
Air Tax Inflated (Score:2)
Information Superhighway Robbery (Score:5, Informative)
Funny how they always mention funding for police services, or the fire department, and never their own salary or the rest of the other unpopular half. For instance, the Burbank budget (pdf) [burbank.ca.us] for the next year forecasts
But they need a VoIP tax to pay for their police services. Right.
Oh, by the way, they're hiring [burbank.ca.us].
Re:Information Superhighway Robbery (Score:4, Informative)
My main point is the disenginuity of saying it's all for the police. It's just like when people say, "Do it for the children!"
Re:Information Superhighway Robbery (Score:2)
Re:Information Superhighway Robbery (Score:2)
Maybe with a reduction in the force, drivers would be harassed by bored cops less
Taxation without representation? (Score:2)
Re:Taxation without representation? (Score:2)
Yeah? How are they going to that? (Score:2)
And if they do managed to tax the big players, who's to say they don't go offshore somewhere?
This started life as a bad idea, and it can only get worse. Time to let it die.
It's a free country (Score:3, Funny)
Re:It's a free country (Score:2)
Like any other management, this is not an all or nothing decision. Some amount of tax must be collected to pay for the state services used to provide the service. That tax today is usually padded by the telcos, which keep all the extra in the name of fees and tariffs, or avoided completely. T
Add Portland, OR to the list. (Score:2, Insightful)
The idea is to cut the standard B&O tax a couple of tenths of a percentage, and add a tax on telecommunications, including pagers, cell phones and landlines. They want to get it to include VoIP as well.
Of course, what this will do is make the companies a little mad, because they have to keep track of it and collect the $$$ on behalf of the government taxing body, but the telcos will of course pass those costs onto the consumer...
Oh well. It's not like there are already v
VoIP tax? It's only fair, right? (Score:5, Insightful)
State and local policiticans see VoIP is an easy mark for more tax revenue. But it's only taxable if they can control the entire telephone and long distance business thru state level regulation. So don't underestimate the determination here, both of these issues greatly increase the power of local politicians.
Since VoIP is only used by businesses and a few not-too-vocal consumers, it's an popular and easy mark to tax right now. And the common man sees lots of taxes on his home phone bills, so it's only fair that everyone else pay taxes on their phone calls, right?
The monopoly ILEC's see taxation as a matter of reducing competitors' advantage and controlling the growth of VoIP for smaller customers.
They are late to the party on VoIP and want to use taxes as a means of reducing competition for their POTS based services. It's also seen as a way of narrowing the playing field. More taxes means more regulation, more lawyers, and more barriers to competition.
How many states? (Score:2)
I could be wrong, but aren't there only 50 states? Did we grow a 51st state recently? Or maybe he meant Washington, D.C., which isn't a state? Or maybe Puerto Rico, which also isn't a state, and ignores the territories of Guam and the US Virgin Islands. I guess if you want to get really technical, Virginia and Connecticut(?) are commonwealths.
Ah, I forgot about North and South Ca
Picking up women in bar, the day after, year 2040 (Score:3, Funny)
So, I met this chick at the bar. She was beautiful. I turned on my famous charm. So I was able to get her to give me her IP.
So this morning I decide to VoIP her and it turns out that she had spoofed the IP.
maybe you should have (Score:3)
Just a thought.
Neighbors take YOUR $$$, Companies DON'T pay taxes (Score:3, Insightful)
From an earlier post: "I think this is just a case of government seeing another opportunity to use people."
Correction: You should think this is just a case of your neighbor seeing another opportunity to take away your money. Assuming we're talking about the US, "we the people" empower the government to use guns to take away resources from other people. NEVER lose site of this. It's the same notion as guns don't kill people, people kill people. Governments don't, on their own, take money from people. People USE the government to take money from people.
From another earlier post: "voip tax on businesses can be a way to focus taxation on companies that won't go broke even if taxed"
A similar notion applies here. COMPANIES DON'T PAY TAXES! Companies merely collect taxes from people and forward the money to the government. NEVER lose site of this either.
Argue these points as much as you like. Left-wing spin or right-wing spin doesn't matter. The basic fact is that people create and empower government to use the threat of deadly force to take away your property and give it to someone else. To some extent, this is usually considered okay. The other basic fact is for EVERY tax that a company pays, somewhere, somehow, their customer (which is eventually a person) pays for the tax. It may be a long path in some instances, but in the end, a PERSON pays for every tax levied on any corporation.
Just... (Score:2, Funny)
Interstate Commerce is Federal (Score:3, Insightful)
VOIP technology is taking the cost of long-distance calling to zero; the main reason companies like Vonage can get away with charging as much as they do is that they're providing convenience to early adopters, and big long distance spenders use a lot of minutes of last-mile delivery (currently billed about 2 cents per minute in much of the US.)
Towns like getting money, and once they get a source of it they make sure to spend it irresponsibly, and California's current state budget problems mean that the state is keeping more money that was previously going to the cities, so they're looking around harder for any sources of catch and grouchier about anything they lose. But this source of money is toast.
Re:Interstate Commerce is Federal (Score:2)
Illinois is good with this. Billion-dollar budget deficit, but no reduction in discretionary programs, only non-discretionary programs.
Re:Interstate Commerce is Federal (Score:3, Insightful)
But no, the problems aren't caused by the legislature's spending money on pork-barrel. They're caused by the legislature and executive branch being unwilling to make honest and realistic predictions of income, expenses, and risk, and being unwilling to come up with the political guts to either raise taxes enough to cover their current expenses plus past debts or else to cut spending, and reality's making it harder to
Re:Interstate Commerce is Federal (Score:3, Insightful)
Is it really? I think of it as more bandwidth which may or may not be used for VoIP.
If I can run an FTP session between two machines without it being the business of the government what I do, I fail to see why VoIP is different. You are already paying for the bandwidth from the provider, and the way you use it is just doling it out.
Are they going to start requiring all businesses to keep de
Mediums on the Internet shouldn't be taxed (Score:2)
The only thing that should be taxed is perhaps the ISP service price. Imagine simply having sales tax on the $30 or so you pay for Internet access itself.
But with the U.S. "wanting" over a half trillion dollars per year for defense purposes, they are going to try getting every penny they can.
Re:Mediums on the Internet shouldn't be taxed (Score:2)
Nice troll. Too bad California LOCAL TAXES don't pay for the military.
On topic, this brings up an imporant point. As IP technologies overtake conventional technologies governments will be forced to change tax structures to retain income. Our choices are to tax the new technologies or force the government to live smaller. Guess which one YOUR elected representative nor
Damn good idea! (Score:3, Funny)
Internet, computers, politics and Thai food are all just the same. If you don't know what you're dealing with, better keep your hands off...
Re:It's time! (Score:2)
Re:It's time! (Score:2)
So please, take one for the team, ok? : )
Re:It's time! (Score:2)
You don't have to build the town now. But you'd be best to have the land ready and zoned o
Re:What about AIM/iChat/MSN/Yahoo/etc? (Score:2)
Open your metro phone book. Mine has a quarter of a million listings and no AOL screen names.
Re:What about AIM/iChat/MSN/Yahoo/etc? (Score:2)
Re:What about AIM/iChat/MSN/Yahoo/etc? (Score:2, Interesting)
But, let's face it. Cell phone quality isn't all it's cracked up to be, especially when you're talking to another cell phone user. And I have a 2.5 Mbit connection sitting here idle most of the time. Why don't more people exploit that? I mean, I'm already paying $50 a month for it. Why add another bill?