Reply to post: Telecommunications is a substitute for travel, we urgently need substitutes for travel

Pay a tax on every gigabyte you download? Haha, that's too funny. But not to Hungarians

Glen Turner 666

Telecommunications is a substitute for travel, we urgently need substitutes for travel

Money for government services has to be raised somehow. Complaining merely because it is on something we use a lot of is no better than the special pleading of other groups on whom taxes fall.

The questions of taxes are if they are fair, efficient to collect, don't distort the economy in unwelcome ways, and don't conflict with broader policy priorities. At the moment a tax on Internet traffic would be progressive (the rich paying more than the poor) and efficient to collect (easily measured, identifiable parties to request payment from).

You could argue that the effect on economic activity isn't going to be great. The "tax" of overpriced mobile telecommunications hasn't stopped people using mobile phones. Demand for telecommunications seems very inelastic to price.

I am opposed to this because of the conflict with the policy priorities of government. Increasing the price of telecommunications inhibits greater use of telecommunications; telecommunications at high speeds are a substitute for travel; and reducing the use of internal combustion engines is a national priority to avoid climate change catastrophe.

Almost all governments seeking increased funding could, for the next 10 to 20 years, do that through a carbon tax. That would kill two birds: advantage government policy in an important area, and raise revenue.

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