From: Marshall Clow <mclow@owl.csusm.edu>
Date: Fri, 8 Aug 1997 15:38:50 +0800
To: Ernest Hua <hua@chromatic.com>
Subject: Re: Export Tax vs ITAR as a compromise ...
In-Reply-To: <199708072032.NAA20409@ohio.chromatic.com>
Message-ID: <v03102807b01030289ecd@[207.67.207.179]>
MIME-Version: 1.0
Content-Type: text/plain



>How about this as a political compromise ...
>
>1.  Allow any export of crypto.
>
>2.  Tax crypto exports heavily, say 25% or something
>    like that, unless key recovery (or some other
>    GAK-ish feature) is part of the product.  For
>    instance, structuring the taxes so that ...
>
>        GAK-only     products get taxed   0%
>        GAK-optional products get taxed  20%
>        non-GAK      products get taxed  25%
>
If this were in force, and I were someone like, say, PGP,
I would export a single copy of my program to a confederate
overseas who would then duplicate it and sell it abroad,
sending royalty payments back to me.

25% of $50 is um... $12.50.

Lots of revenue there.

-- Marshall

Marshall Clow     Aladdin Systems   <mailto:mclow@mailhost2.csusm.edu>

"In Washington DC, officials from the White House, federal agencies and
Congress say regulations may be necessary to promote a free-market
system." --  CommunicationsWeek International April 21, 1997