From: "William H. Geiger III" <whgiii@amaranth.com>
Date: Fri, 18 Jul 1997 12:27:55 +0800
To: Tim May <tcmay@got.net>
Subject: Re: "Time to Walk the Walk down the Gang Plank"
In-Reply-To: <v03102801aff48a1390fc@[207.167.93.63]>
Message-ID: <199707180421.XAA09823@mailhub.amaranth.com>
MIME-Version: 1.0
Content-Type: text/plain



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In <v03102801aff48a1390fc@[207.167.93.63]>, on 07/17/97 
   at 07:54 PM, Tim May <tcmay@got.net> said:

>At 7:36 PM -0700 7/17/97, Mac Norton wrote:
>>On Thu, 17 Jul 1997, Tim May wrote:
>>>
>>> Taxes are already essentially uncollectable, even in interstate
>>> transactions, so the moves by Summers and Magaziner are truly token
>>> gestures.
>>
>>
>>Uh, Tim, corporate and personal income taxes are still rather
>>well collectible, and that my be the reason the federal gov't
>>doesn't worry too much about taxing the Net. State, and even
>>more so local, gov'ts do not have the same collectibility
>>advantage.  And the locals are often revenue-starved and

>I meant that taxes are essentially uncollectable for interstate
>transactions like mail order purchases.

>I buy several thousand dollars worth of stuff each year by mail order,
>and only a few hundred bucks worth of it has been taxable.

>My state, California thinks I should either send them a check for 8.25%
>of all that I have purchased, or that the vendors in New Hampshire, Ohio,
>etc. should send them such a check....we all ignore this notion, and
>there is little to be done. It is this sort of "tax arbitrage" I was
>drawing a very real parallel to.

>Most "tax the Net" talk I hear about is about taxing Net commerce (as
>opposed to, say, placing a per minute tariff on Net connections). Hence,
>my point.

>I wasn't referring to either corporate or personal income taxes, which
>have little or nothing to do with the Net.

Actually with some "creative" accounting one can make use of the net to
cirumvent large amount of corporate & personal income tax. :)

It is quite possible to set up virtual corporations who's complete
bussines is done over the wire. While some setions of industry can benifit
from this more than others I see in the future a large section of the
revenue stream migrating offshore to various taxhavens beyoned the reach
of the little piggies in DC. :)

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William H. Geiger III  http://www.amaranth.com/~whgiii
Geiger Consulting    Cooking With Warp 4.0

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