In order to "prompt discussion of whether to recommend policy changes to support the ongoing reinvention of journalism," the Federal Trade Commission is proposing a tax on consumer electronics. If passed, the proposal would add 5 percent to the cost of iPads, game systems and other devices. The money would presumably be used to subsidize paper-based sources of information.
Yeah, that should prompt a discussion... a discussion that begins with "What??!"
As you may have read on the internet, print journalism -- magazines, newspapers, racing forms -- is having a rough time adjusting to the new electronic landscape. Publications have only had around 15 years or so to find a way to adapt to new technology and make money from ads, so the government is trying to find a way to help them out, potentially with your tax money.
Other changes up for discussion include changing rules of copyright to bestow greater rights on publishers to keep people from re-posting as much, and other ways of extracting payment from news aggregators.
Check out the proposal and see if it prompts some discussion in our comment section.
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Comments
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Silky08
What about legalizing marijuana then charging the tax on that? Hello billion dollars of revenue that eventually goes back to china to pay back that massive debt.
BrandonH1985
Screw that.
BigAngryRobot
Create new taxes when no one has any money to spend.
BRILLIANT.
tekhead73
Ain't Socialism Grand no it is an Obamination. Our freedoms are being ripped from us and/or being taxed to to levels that would make Karl Marx proud.
Nov. 2010 & 2012 CAN NOT come fast enough!!!!!!!!!!!!!!
Syaieya
Page 2 under The Current State of the News
"Studies have shown that newspapers typically provide the largest quantity of original news to consumers over any given period of time. We include within the term newspapers online news websites run either by an existing newspaper or by an online-only news organization."
This doesnt just refer to print newspapers people but instead refers to online news sites providing news, it's to allow people to gain a foothold into the digital market without going broke because the online advertisements arnt worth as much as print advertisements
And as for the proposed tax on consumer electronics; It's a 2 line idea out of many much more thought out ideas on two pages halfway through the document.
Other ideas in that section involve, taxing advertisements, taxing isp cell phones bills, taxes on communications auctions taxes, and taxing broadcasting companies
and out of those ideas the consumer electronics tax would give the smallest projected gain.
at the top of the second page theres even a link to suggest other proposals on how to fix the deficit that online news and print news are giving
furiousgeorge
I didn't read the entire proposal becuase I just couldn't take it anymore. My understanding of it is that people would rather read blogs or watch videos on youtube about what ever subject. The government and established news organizations can tax or receive any sort ad revenue from that. So the government is in bed with the news organizations to try to save a dying format. I'm not saying that a print journalism is invalid. I enjoy magazines, but newspapers are invalid. Why wait for tomorrows newspaper when you can see whats happening in the world at this very second.
In the proposal it says
"Newspapers revenues from advertising have fallen approximately 45% since 2000. For example, classified advertising accounted for $19.6 billion in revenue for newspapers in 2000, $10.2 billion in 2008, and is estimated to be only $6.0 billion in 2009."
That statement right above sums up the whole reason for this tax. The reason why they are scared is becuase of this statement.
"With the advent of the Internet, advertisers have many more ways in which to reach consumers, including, for example, through a marketer s own website or through topical websites that relate to the products that an advertiser wants to sell."
The advertisers being anybody selling something ex) if I want to sell my car. I don't have to pay anymore to put an ad in the newspaper. I don't have to pay more to make it bold or in a different font to make people notice it. I don't have to pay more to outline it or add a picture. I can go to a website post it for free put a ton of pictures of the car. Write everything I want about the car. When you click on the thumbnail of the car, it will go to it's own page. I actually posted my car online and sold it within two days.
It all comes down to money, the government and news organizations didn't adapt fast enough to that little thing called the internet and now they're getting hit hard in the wallet.
TrustFall
The US government has no business getting involved in any way with the press. This is a fundamental foundation of the United States. When the government starts bailing out old guard news organizations (and this is an attempt to prop up print journalism, nothing more) then you begin leaning toward a STATE RUN news organization. And that is a bit too terrifying to think about it.
Designedcoma
This is stupid. I now get my newspaper online. The company actually has had an increase in subscriptions due to this. Meaning, they now have more than they did when it was paper. They still do paper 3 days out of the week, Thursday, Friday and Sunday. We are already paying the magazine price along with tax and add another tax to prop them up. Sorry no, stream line the company make cuts like all comapnies have to do and maybe the CEO can stop making a couple mill a year. They always say they care about their companies but yet they wont take a cut but the employees have to. Do you really need 1.5M a year to LIVE on. NO!! Do you think you deserve it? NO..take care of your company not your friggin life styles...
ixquiz
i would be OK with this only if i didn't have to pay any other type of tax when i purchase the item, not even state taxes. that will be the only way i would be OK with this. 5% on top of my 8.25% state tax just wont be acceptable
zack2545
If this really happens, I'm gonna have to start chargin' ma lazers....
illywillie
Stop b itching taxes need to go up and entertainment and big business are where it should come from there are a bunch of my gen who complain about taxes not at all understanding they aren't really paying any taxes since they own nothing and make little I love games and haven't got a prob with a 3 dollar tax on a new game stop why ning you hate government cause the loudest voice on the bus tells you too.... tip the loudest person on the bus is normally the most ignorant. Not stupid just choses no to know! Instead they yell.
PkrPlr4LIFE
If the papers aren't doing well anymore why do they need more money?
If people aren't buying as many papers as they used to they shouldn't print as many. If only 30% of your papers are getting purchased why not only print say 50% as many. then a total of 60% would be purchased. they would save at least 1/2 of their usage of materials (paper, ink, man hours). I understand that this might cause some people to loose their jobs, but maybe some of the big bosses making big bucks could IDK say maybe take a salary cut. But if job loss is unavoidable I believe that is what unemployment is for. Times are hard for everyone people have to make sacrifices.
A Second thought on the matter is why is the government giving money to jobs that are becoming outdated? Are they going to do this for everyone? When my job starts to become obsolete are they going to step in again and tax the person or product that made my job outdated??? That would be nice security for everyone.
I truly hope the government realizes that this new tax is wrong on so many levels. If not God help us all.
Sinsfire
Ok first off it is well within the powers of the US government to regulate and tax that which travels through interstate commerce.
Second please tell me how this is a power grab??? what power are they grabbing??? I live in California where we have massive taxes, but its nothing compared to Europe and Canada.
I am sick of people being Socially liberal and fiscally conservative... you know what you all want. You want the government to make sure you have roads, schools and safety but you don't want to pay for it.
F you and your high horse. Pay your fair share or move to the mountains and live off the grid that I help pay for.
SkylerPatrick
This is messed up. Yet again the government is overstepping the bounds and trying to power grab as much as possible and continue its growth into the bloated leviathan that its become. These people watch porn all day at work and we are supposed to pay more on taxes so that they can hire more people to sit and watch porn instead of their jobs. F that!
Azagathoth
Lets just bail everyone out! What happened to letting a business fail. That's capitalism. I don't want to have to pay because they can't adapt. Total BS.
aboriginee723
If it goes through, I'm moving to Delaware. Or wait, did they put sales tax in place yet there?
mittens1231
5% plus the 10.25% tax here in chicago? keeping this hobby is not worth it.
g4fan247
This new tax proposal is a dumb idea.
gaddydaddy
Just remember, this is what government does, or rather all it is capable of. It also doesn't help that we have a president in office that never saw a tax he didn't like and has raised the national debt one trillion dollars in two years. Enjoy.
paladin_vince
to all those who say this is a bad idea, as do i. this is why we should let our congressmen know how stupid it is. and by that get everyone you know to write and email to them telling them to say no on it or else they will lose your vote for them in election time. nothing says do your job right like the possibility of being fired XD
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