Internet taxes could slam California

Internet taxes could slam California

phone boothCalifornia benefits from the Internet currently being largely tax-free. Generally, the only taxes are for signing up for a local Internet service provider. It’s a flat fee no matter if you hog the Internet by watching continuous Netflix videos, or more profitably use your time reading everything on, which doesn’t use much bandwidth.

That could change under the FCC’s proposal to treat the Internet as if it were a 1930s telephone company. If that happens, you could see your taxes rise sharply.

Warn Grover Norquist and Patrick Gleason of Americans for Tax Reform:

The Federal Communications Commission is in the middle of a high-stakes decision that could raise taxes for close to 90 percent of Americans. The commission is considering whether to reclassify broadband as a telecommunications service and, in doing so, Washington would trigger new taxes and fees at the state and local level.

The agency would like to make Internet service a public utility, placing broadband under Title II regulation of the Communications Act of 1934. This move would make broadband subject to New Deal-era regulation, and have significant consequences for U.S. taxpayers.

Under this decision to reclassify broadband, Americans would face a host of new state and local taxes and fees that apply to public utilities. These new levies, according to the Progressive Policy Institute (PPI), would total $15 billion annually. On average, consumers would pay an additional $67 for landline broadband, and $72 for mobile broadband each year, according to PPI’s calculations, with charges varying from state to state.

This would be doubly bad for California. State and local taxes would go up.

But the tax increases in the other 49 states and their local governments also would hit us, because the money, in the end, would come from California’s Internet companies: Netflix, Google, Apple, Facebook, etc.

And according to Avalara, which helps businesses collect local taxes, there are “more than 14,500 local taxing jurisdictions” in America.

In the 1930s, top auto brands included Studebaker, Packard and DeSoto. There were no interstate highways or passenger jets. Going from L.A. to New York City meant taking a several-day train ride. TV was a lab experiment. And calling long-distance meant dialing an operator and paying a high bill for each call.

Does that sound like our world? It does to the FCC.


Write a comment
    NTHEOC 7 January, 2015, 14:17

    Slam California??? I would say boost California’s economy even more! No more freebies and this will be good for the private sector businesses who get screwed by the internet sales. I think it’s a good idea….

    Reply this comment
    • bob
      bob 7 January, 2015, 20:28

      “I would say boost California’s economy even more! No more freebies and this will be good for the private sector businesses who get screwed by the internet sale.”

      No more feebies? Only a trough feeding parasite would say something like that.

      “I think it’s a good idea…”

      Yup, anything to screw the taxpayers even more is a good idea to a trough feeding parasite like you.

      Reply this comment
    • Donkey
      Donkey 7 January, 2015, 21:53

      You really are a RAGWUS feeding rat ntheoc. 🙂

      Reply this comment
      • NTHEOC
        NTHEOC 8 January, 2015, 21:10

        Wow Donkey, is that all you got?? Anyway how’s that pension tax your paying?????? Hah!

        Reply this comment
  2. Rex the Wonder Dog!
    Rex the Wonder Dog! 7 January, 2015, 15:30

    Slam California??? I would say boost California’s economy even more! No more freebies and this will be good for the private sector businesses who get screwed by the internet sales. I think it’s a good idea.
    Taxes will BOOST the economy??? And this is a tax on the internet usage, not the businesses doing commerce, so that is totally off base. No, this is not how taxes work, taxes take money out of the economy, where a free market puts that capital to the best use, and transfers it to trough feeders who waste it on trillion dollar screw ups, one after another, like the Slow Speed BB Gun train, and a million other screwed up disasters (remember the $500 million electronic court software filing system???..or the EDD computer software upgrade screw up…or the LAUSD BILLION “iPad” disaster)

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 7 January, 2015, 15:52

    This is a bad idea. I get ripped off regularily by telephone and satellite companies. Bogus add ons, charges, second party bills on their bills. And who knows what all these taxes are about, how computed, who gets the money.

    Call a telephone, cable or satellite company for billing help…..Can take two hours and they say the fix ups will show the next billing cycle…….never happens…..Takes months of dogged perserverence like a Yorkie with a Pit Bull mindset.

    Are they idiots or on commission to wear you out?

    Reply this comment
  4. bob
    bob 7 January, 2015, 20:25

    Hurt Colliefornia (as Ahnode calls it)???

    Tax happy DemoNcrats couldn’t care less. They want to tax the shiite outta you.

    Reply this comment
  5. bob
    bob 7 January, 2015, 20:27

    “Does that sound like our world? It does to the FCC.”

    So what’s the FCC stand for again? Oh, that’s right…F Consumers Completely.

    Reply this comment
  6. Ted
    Ted "Patriot" Steele 8 January, 2015, 06:44

    It’s a GREAT idea!

    Reply this comment
  7. Ted
    Ted "Patriot" Steele 8 January, 2015, 06:45

    Doomers gotta pay baby!

    Reply this comment
    • NTHEOC
      NTHEOC 8 January, 2015, 08:18

      You would think these tea bagging DOOMERS would want to support private sector businesses. Now instead of bypassing a private sector business to buy a product tax free online, hopefully they will come out of their bunkers and shop at their local stores!! You gotta pay to live the good life here in Cali.

      Reply this comment
  8. Larry-Klamath River
    Larry-Klamath River 8 January, 2015, 12:15

    California business is losing nothing. State sales tax in CA is collected on most every online purchase, and has for years. The largest, and smallest, businesses in CA have online services increasing sales, whether from the store directly, or an online portal.

    Catch up on your technology information. And, I forgot to mention increased business for UPS, FedEx, OnTrac and other providers who hire locally.

    Reply this comment
    NTHEOC 8 January, 2015, 12:57

    Thanks for the info Larry, Good to hear that!!! I still like the online tax.

    Reply this comment
  10. Ulysses Uhaul
    Ulysses Uhaul 8 January, 2015, 23:26

    Donkey eat your prunes!

    Reply this comment

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regulationFCCInternetJohn Seiler

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