GoBobDole
03-08-2006, 07:32 AM
Not a good precedent if it happens, IBDHO.
Senators in Virginia have passed a bill that would apply a statewide flat-tax on communications and video services, including satellite television, satellite radio and Internet telephone, according to the Richmond Times-Dispatch. The provision now heads to the governor for approval. If enacted, it would go into effect on January 1. Proponents say the five percent tax on communications services would help bring relief to many taxpayers, but rural legislators argue that their constituents - who rely on satellite dishes for reception - may face a new tax burden.
The bill is sponsored by Del. Samuel A. Nixon Jr. (R-Chesterfield), who says that the average Virginia phone bill is 30 percent taxes, one of the highest in the country. The state's current taxing structure is "based on a post-World War II model, put in place before [technologies] such as pagers, satellite TV and Internet," Nixon said, according to the Times-Dispatch. "Technology has advanced but the tax system has not." Therefore, a flat tax would level the playing field for all communications and video services, with Virginia consumers paying the same rate regardless of where they live, Nixon said.
However, the satellite industry opposes the measure. DirecTV lobbyist Mark C. Pratt said the bill is unfair to dish providers because they should not be asked to plug a tax revenue hole being made by the telephone industry. "Our business model requires us to pay the federal government to have the satellites that we own in outer space beam signals into our customers' homes," Pratt said, noting that satellite technology does not use public property or roads to deploy its services like telephone and cable TV companies do.
The Times-Dispatch says Sirius Satellite Radio also sent e-mails to its subscribers yesterday stating that the bill is unfair to consumers because satellite radio service "is not competitive with these other services," such as phones and cable TV. Furthermore, Senator Jeannemarie Devolites Davis (R-Fairfax) warned that passing the bill would put Virginia "down the path of taxing content," and not the method by which the content is delivered.
Source (http://www.fmqb.com/Article.asp?id=183565)
Senators in Virginia have passed a bill that would apply a statewide flat-tax on communications and video services, including satellite television, satellite radio and Internet telephone, according to the Richmond Times-Dispatch. The provision now heads to the governor for approval. If enacted, it would go into effect on January 1. Proponents say the five percent tax on communications services would help bring relief to many taxpayers, but rural legislators argue that their constituents - who rely on satellite dishes for reception - may face a new tax burden.
The bill is sponsored by Del. Samuel A. Nixon Jr. (R-Chesterfield), who says that the average Virginia phone bill is 30 percent taxes, one of the highest in the country. The state's current taxing structure is "based on a post-World War II model, put in place before [technologies] such as pagers, satellite TV and Internet," Nixon said, according to the Times-Dispatch. "Technology has advanced but the tax system has not." Therefore, a flat tax would level the playing field for all communications and video services, with Virginia consumers paying the same rate regardless of where they live, Nixon said.
However, the satellite industry opposes the measure. DirecTV lobbyist Mark C. Pratt said the bill is unfair to dish providers because they should not be asked to plug a tax revenue hole being made by the telephone industry. "Our business model requires us to pay the federal government to have the satellites that we own in outer space beam signals into our customers' homes," Pratt said, noting that satellite technology does not use public property or roads to deploy its services like telephone and cable TV companies do.
The Times-Dispatch says Sirius Satellite Radio also sent e-mails to its subscribers yesterday stating that the bill is unfair to consumers because satellite radio service "is not competitive with these other services," such as phones and cable TV. Furthermore, Senator Jeannemarie Devolites Davis (R-Fairfax) warned that passing the bill would put Virginia "down the path of taxing content," and not the method by which the content is delivered.
Source (http://www.fmqb.com/Article.asp?id=183565)