Showing posts with label taxation on the internet. Show all posts
Showing posts with label taxation on the internet. Show all posts

Sunday, August 29, 2010

Philadelphia Blogging Tax

So has anyone heard about the "blogging tax" in Philadelphia? Not sure what started the firestorm about it, but it appears that it was being called a Blogger's License. This was being discussed as one more way that "Big Brother" was taking over the free speech rights of citizens just because they operated a blog while living in the city of "brotherly love".

Turns out it's not entirely the whole story. According to the city,
"It has a business-privilege license that is required of any business operating in the city. The license costs $50 a year or $300 for a lifetime license."
Hmmm, what are the penalties if they don't register for this 'business-privilege' license?

In an article on wired.com titled 5 Myths About Philadelphia’s ‘Blogging Tax’,
"It covers any business in the city of Philadelphia, whether you’re a multinational oil company or (in principle) a kid running a lemonade stand"
so everyone is being treated equally. Oh wait, the kid with a lemonade stand pays the same as a multinational oil company? If you happen to make money online with your blog, and live in Philadelphia, the city wants a cut.

Turns out this story was a big buzz even in Great Britain, although this article is quick to quell the rumor.
"The problem is "people not taking five seconds to realise it's not a blog tax, it's a tax on all the commerce in the city," says Sean Blanda, co-founder of tech news site Technically Philly and an ex-employee of the City Paper. "But people thought it was an affront to free speech. It says nothing about free speech." As Blanda wrote on his blog : "There is no 'blog tax' in Philadelphia. None."
Question; should the city be counting local bloggers income as taxable or should bloggers be treated as global citizens - exempt from local fees? Does a city or municipality have the right to charge a fee for operating a business online, even though the business owner is typically not using city resources? Or, is making money on the internet a valid way to shelter your income? You can always set up an offshore mailing address like other companies with much larger bank accounts!