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Sunday, October 10, 2010

A tax on blogs would signal end to the RT Cave

Mark Hemmingway of the Washington wrote an interesting article titled, "Philly requiring bloggers to pay $300 for a business license." He explains, "It looks like cash hungry local governments are getting awfully rapacious these days:

"Between her blog and infrequent contributions to, over the last few years she says she’s made about $50. To [Marilyn] Bess, her website is a hobby. To the city of Philadelphia, it’s a potential moneymaker, and the city wants its cut."

In May, the city sent Bess a letter demanding that she pay $300, the price of a business privilege license.

“The real kick in the pants is that I don’t even have a full-time job, so for the city to tell me to pony up $300 for a business privilege license, pay wage tax, business privilege tax, net profits tax on a handful of money is outrageous,” Bess says.

It would be one thing if Bess’ website were, well, an actual business, or if the amount of money the city wanted didn’t outpace her earnings six-fold. Sure, the city has its rules; and yes, cash-strapped cities can’t very well ignore potential sources of income. But at the same time, there must be some room for discretion and common sense.

When Bess pressed her case to officials with the city’s now-closed tax amnesty program, she says, “I was told to hire an accountant.”

She’s not alone. After dutifully reporting even the smallest profits on their tax filings this year, a number — though no one knows exactly what that number is — of Philadelphia bloggers were dispatched letters informing them that they owe $300 for a privilege license, plus taxes on any profits they made.

Even if, as with Sean Barry, that profit is $11 over two years.

Wow! If the town of Shoreline decided to make me pay $300 to get a business licence for this blog I would be forced to quit. This is a perfect example we need to pay attention and be careful who we elect to public office, and thus to the courts.

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