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United Nations: Tax Email

Recently there have been some widespread hoaxes about supposed government plans to tax Internet usage.

The following, however, is real.

The United Nations Development Program has proposed a 'bit tax' on email. The proposal is in the UN's annual "Human Development Report," issued in mid-July.

UN officials say that a tax of one penny per every 100 email messages sent would raise $70 billion a year. That money would allegedly be used to help provide telephone and Internet service in poor nations.

"Market forces alone will not rectify the imbalance," the UN report states. "Governance of the Internet should be widened to bring in the needs and concerns of developing countries. To ensure that the global communications revolution is truly global, funding is required."

"If you leave it up to the market alone, we can't be sure that the Internet will spread fast enough and reach the people that really need it," stated economist Kate Raworth, co-author of the report.

The United Nations has no ability to tax (yet), so the proposal is a suggestion, or perhaps a trial balloon. Thus far it has not met with much enthusiasm (perhaps in part because greedy governments want to preserve any future Internet tax revenue for themselves).

The UN proposal is ironic, since competition - not government subsidies - has slashed the cost of computers and Internet access to levels that would have been inconceivable just a few years ago. Many of the governments the UN would subsidize are actively hostile to the freedom of communication and commerce that the Internet brings. Indeed, hostility to free markets and free expression characterizes the governments of most of the poorer nations of the world.

Instead of strangling the Internet with new taxes, it would be far better to encourage deregulating telecommunications (which are generally disastrous government monopolies in poor nations), and replacing socialist/authoritarian/high tax/anti-market economic practices with free markets.

Meanwhile, the rallying cry for all who want to see the Internet continue to grow and prosper - in rich nations and poor alike - should be: "No Internet Taxes!"

(Sources: Wired News, July 27 / ZD Net News / Michael Brinkman)

This article appeared in the free, biweekly electronic newsletter -- The Liberator OnLine.
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Copyright © 1999, Advocates for Self-Government, Last Modified, Tue Aug 03, 1999