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In Can You Hear Me Now? on 07/04/2010 at 09:10

Updated Apr 7, 2010

RECOMMENDATION 4.20: The federal government should investigate establishing a national framework for digital goods and services taxation.

Says an FCC recommendation released by the Obama administration today.

The National Broadband Plan is focused on increasing beneficial use of the Internet, including e-commerce and new innovative business models. The current patchwork of state and local laws and regulations relating to taxation of digital goods and services (such as ringtones, digital music, etc.) may hinder new investment and business models. Entrepreneurs and small businesses in particular may lack the resources to understand and comply with the various tax regimes.

Timothy H. Lee quotes from the Federal Communications Commission’s (FCC) National Broadband Plan in an Opinion column in the Washington Times yesterday.

For the past six months LCL has been saying that the Obama administration will move for a government takeover of the media and particularly the Internet. Now it appears they are making their move.

Fox Nation picked up the story midweek and it has received some play around the Internet, but the implications for bloggers such as LCL are clear. If the FCC gets its way they will slowly tax all but the biggest out of business and regulate the rest.

Lee, vice president of legal and public affairs for the Center for Individual Freedom, continues:

As concerns the Internet, the Obama administration is at the tax and regulation stage. Should it succeed in imposing Internet taxes and “Net Neutrality,” however, it’s only a matter of time until we would reach the failure and subsidy stage for yet another sector of our economy.

Under the guise – always the guise – of “fair play,” the Obama administration is pressing to levy a tax, fee or regulation on every aspect of American’s daily lives, and if he wins here he will have effectively taken over the future of communications in the country.

Lee goes on to say, “Americans already suffering from a recession prolonged by Mr. Obama’s policies are being asked to concur that raising – yes, raising – taxes on a nationwide basis will somehow ‘reduce uncertainty and remove one barrier to online entrepreneurship and investment.'”

LCL will be watching this story closely in the weeks and months to follow and bring you the updates as they transpire.


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