Wednesday, September 30, 2015

Issue 689 Don't Tax Services September 30, 2015

Continuing from last issue on services, I wanted to expand on the subject.  In this case, I want to present my case on why services should not be taxed.  Let us begin.

Don't Tax it:  First and foremost, services can be either free, pay as you go or subscription based.  So money can change hands.  However, unlike with goods (like cars, toys, tools etc.) nothing physical is exchanged.  There is no exchange of property.  In other words, teachers providing an education to students as a service would not be taxed.  Same goes for intellectual property, such as online news, blogs and such.  These are all services where no physical property is exchanged, but is either someone's labor, which can count as a form of free expression, or information which is someone's freedom of speech.  So should a web designer be taxed because they were paid to design a web site despite it being a form of free expression and speech? (It counts because the website provides information and the design of the site itself can be considered art).  Should an online magazine be taxed for charging a nominal fee to access their content which is their freedom of speech and even part of their freedom of the press?  No property in the form of an item is returned from the money given, just intangibles like labor and information.  So why are such things taxed when they clearly blur the lines between the meaning of exchange of property?


Conclusion:  As long as nothing physical is returned in exchange for the money like a computer, or a toy, then it is probably a service.  When we provide our labor to a business we work at, we are also providing a service.  Can you imagine the sheer level of economic progress we can achieve by eliminating taxes on services all around?  People would be able to keep so much more of their income and have more options with respect to jobs in service based industries like computer programming and artists.  Health Care would be almost entirely untaxed, which means cheaper medicine.  Services that are internet based would be the top commodities with respect to global trade and business due to the freedom to be sold to the entire world.  Internet based services provide information, which is the freedoms of expression and may also, depending on the content, be considered a part of the press.  These online services even allow people to peaceably assemble via online chat rooms and even aid in freedom of religion.  Basically the internet based ones alone have at least one out of four of the freedoms guaranteed by the first amendment to the United States Constitution (those freedoms being freedom of speech, worship, press, peaceful assembly and to petition the government).  That’s one freedom and potentially including the other three save government petitioning.  Labor based services also qualify as a form of speech for people choose where they work, how they work and can move (if they have the money) to find work (the ability to move and choose your occupation is free speech).  That work may be providing the news (freedom of the press) or involve a religious based industry or charity (freedom of religion).  Services based on labor can be community organizing which aids in freedom of religion, counts as peaceable assembly and can even be a form of petitioning the government.  Do you get it know a little?  By taxing these services, the government is not only diminishing our income for selling intangible materials, they are actually taxing our freedoms!  So let's stop the madness, and not tax services anymore.

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