California proposes tax on texting and wants to make it retroactive

[dogmush]

How are they going to monitor it? What if someone in California sends a text to or receives a text from someone in Nevada, or Arizona -- or Massachusetts? I don't think California can legally tax messages that travel interstate.

I imagine they think they can do it by Area code.*  SMS or MMS sent from area codes in CA, or received by Area codes in CA.  Lind like how if you have vehicle plates from a state other than where you live, you send the tax money back to the state that issues the plates.


*And yes, I see the obvious problem with that, but tax weasels are stupid.

[RoadKingLarry]

*And yes, I see the obvious problem with that, but tax weasels are stupid evil.

FTFY

[dogmush]

FTFY

The two are not mutually exclusive.

[brimic]

I think Oregon did something similar as well. It may not have been a tax, but maybe a fine or something for collecting rainwater , which they say doesn't belong to you, even falling directly on your own property.

In the last town I lived in, they were floating the opposite idea- a 'runoff tax.' They were planning on a residential tax based on roof/driveway/sidewalk/patio/deck square footage. I moved away before it was either implemented or tossed out.

[HankB]

How are they going to retroactively collect 5 years of text taxes from people who have moved out of state?

[MechAg94]

How are they going to retroactively collect 5 years of text taxes from people who have moved out of state?

I am sure they will try.  Force people to fight them in court until someone finds a federal judge with the balls to shut them down.

[RoadKingLarry]

I am sure they will try.  Force people to fight them in court until someone finds a federal judge with the balls to shut them down.

I Kalifornia?   

[HankB]

Will the Kalifornia tax apply to people like tourists who visit? How will they collect it?

If they won't be collecting the text tax from out of state people, it would seem that there's a business opportunity here . . . establish a "phone residence business" in someplace like Nevada, so Kalifornians can get their phones registered to an out of state address. 

[K Frame]

Update...

California has backed down from its plan to tax texts.

https://www.cnn.com/2018/12/16/tech/california-text-tax-vote-canceled/index.html

"The FCC put the text tax's future in doubt when it issued a new rule on December 12 determining text messages constitute an "information service" — not a "telecommunications service." CPUC commissioner Carla Peterman withdrew the text tax propsal "in light of the FCC's action."


How DARE that bastard Trump stop California from collecting its fair share? Everyone knows it was really he who imposed that rule, because he's the text and Twitter president!

Suck it, California.

[Firethorn]

How DARE that bastard Trump stop California from collecting its fair share? Everyone knows it was really he who imposed that rule, because he's the text and Twitter president!

The state might not be so ambitious about collecting all sorts of new taxes if it wasn't so limited in regards to a number of other taxes.  Specifically their thing about not being able to value homes at their actual/estimated actual value until it is actually sold, which means that there are quite a few properties paying taxes at valuations almost 40 years old.

I know my explanation isn't entirely correct, but there's a cap on how fast they can raise the rates, regardless, and it hasn't kept up with property value increases.

That said, like most libertopias, they definitely see any excuse to spend(and therefore tax) more.

[makattak]

The state might not be so ambitious about collecting all sorts of new taxes if it wasn't so limited in regards to a number of other taxes.  Specifically their thing about not being able to value homes at their actual/estimated actual value until it is actually sold, which means that there are quite a few properties paying taxes at valuations almost 40 years old.

I know my explanation isn't entirely correct, but there's a cap on how fast they can raise the rates, regardless, and it hasn't kept up with property value increases.

That said, like most libertopias, they definitely see any excuse to spend(and therefore tax) more.

I'm fairly certain that one constitutional provision is the only thing protecting the country from a mass invasion of progressive locusts fleeing California. And for that I am extremely grateful.

[slingshot]

Glad to hear that this proposal has been dropped.  Both the states and federal government love taxes that are simply added to your bill monthly and get get a continuous revenue stream.  Telephone, Cable bills, and gasoline/fuel taxes are the best examples that comes to mind.

[Ben]

Glad to hear that this proposal has been dropped.  Both the states and federal government love taxes that are simply added to your bill monthly and get get a continuous revenue stream.  Telephone, Cable bills, and gasoline/fuel taxes are the best examples that comes to mind.

Yup. Also relates to most people getting their paycheck after taxes have already been taken out, so it's "less noticeable". Goes back to what many of us here bring up all the time: if there was a way to do it, make people write one big check for taxes every year. Seeing the actual dollar amount and "feeling the pain" would certainly change the national tax scene.

[K Frame]

"The state might not be so ambitious about collecting all sorts of new taxes if it wasn't so limited in regards to a number of other taxes."

California might not be so damned ambitious about collecting all sort of new taxes if they weren't being driven by the current socialist power structure screeching SPEND SPEND SPEND SPEND SPEND!!!!

They might also be more successful in collecting more tax revenue if they weren't so freaking hostile to business.

https://www.investors.com/politics/editorials/california-companies-leave-taxes/


California's socialists are on an unsustainable path, and it's already starting to eat them alive. But they don't care.

[MechAg94]

The other side of that is too many voters fall for the viewpoint that we need to tax more to pay off debt or avoid budget deficits.  They forget that out of control spending, corruption, and waste lead to the debt, not lack of tax revenue.

[Ben]

California's socialists are on an unsustainable path, and it's already starting to eat them alive. But they don't care.

They doubled down on that in the last election. Pretty much a mega super majority that has nothing to slow them down, let alone stop them. At this point I don't think a reasonable correction can be made.

It will have to be something like the state being at the point of declaring bankruptcy to reverse the current political demographic. Even then, there will still be a large group crying, "Tax the rich more!" or, "The Federal government needs to save us and give us free stuff!"

[K Frame]

"Even then, there will still be a large group crying, "Tax the rich more!" or, "The Federal government needs to save us and give us free stuff!""

They already started that chorus when California almost went tits up during the financial crisis, and yet the legislature and residents learned nothing from it.

California has done well during the recovery, but the legislature has done nothing but push out more spending, push out more businesses, and push more people out of the middle class into the lower class and poverty.

When the NY Times, champion of liberal government excess, starts raising questions, then you know you're not on the right path. https://www.nytimes.com/2018/02/13/business/economy/california-recession.html?rref=collection%2Ftimestopic%2FCalifornia%20Budget%20Crisis&action=click&contentCollection=us&region=stream&module=stream_unit&version=latest&contentPlacement=1&pgtype=collection

[Ben]

California has done well during the recovery, but the legislature has done nothing but push out more spending, push out more businesses, and push more people out of the middle class into the lower class and poverty.

Part of why they have done so well is certain companies and the income they generate in Silicon Valley, which somewhat counteracts the tax loss of other businesses pulling out. Were there to be a cultural change at those companies that got them to move to Texas, for example, that would be an interesting day. Especially with the trickle down effect to all the tech companies that only exist because of their proximity to the Googles, etc.

[K Frame]

The silicon valley exodus has already started.

https://www.businessinsider.com/silicon-valley-tech-elite-is-leaving-san-francisco-2018-3


as the leaders go, the businesses will follow.