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The Massachusetts Software Tax

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111–120 of 201 posts

Re: The Massachusetts Software Tax

#111
post #23
post #18

Unfortunately Mass. has unfunded pension liabilities exceeding $20 billion (not including municipalities), and unfunded health care liabilities exceeding $45 billion (including municipalities. At the same time, states will have to deal with the new normal, which is lower economic growth indefinitely and lower returns on invested assets. As a result, states will ratchet up taxes to cover their increasingly untenable b…

I don't disagree with the macro point, but if you don't like this particular tax, Texas would be a poor choice of alternatives, because it already applies sales tax to an even broader class of software services than MA is now doing. For example, even hosted services like SaaS are covered under the Texas taxable-services definition, in cases where Texas has sales-tax jurisdiction (e.g. your business has an Austin offi…

I disagree, because in Texas, the sales tax is significantly more clear who is affected. "You have an office in Texas, you pay tax" is pretty simple.

Re: The Massachusetts Software Tax

#112
post #93

Earlier quoted context omitted.

Tax is paying for services you use, which is very moral.

That's not really true. You can avoid most if not all government services and still have to pay the same amount as everyone else. They also have a monopoly on most things. It's not like you can go to a competing service.

I disagree that you can avoid using these services, because I don't think that things like public schools are a service only to their direct recipients. Even families that can afford private schools for their children benefit from living in a nation with a high literacy rate. I'm not a 'customer' of my city's social services, but I benefit from having fewer people bottom out and end up on the street.

Re: The Massachusetts Software Tax

#113
post #96

Earlier quoted context omitted.

I would prefer to pay for services I use then to have the money stolen from me by force while people pretend it is moral because it is called "taxes"

OK, you're trolling here, and if I could downvote you for it, I would; but since I can't, let me try to raise the level of discussion: > I would prefer to pay for services I use I invite you, sometime, to think about which services you really use, and try to figure out how much it would cost to purchase each of them if you were doing so on your own. Don't forget: police protection, fire protection, military protectio…

Don't forget: police protection, fire protection, military protection, paved roads, functioning traffic signals and signs, groomed parks, trash collection (some places), up to sixteen years of education, enforcement of workplace safety standards, financial protection if you become suddenly disabled, a legal system in which to resolve disputes.

Those services make up a fairly small portion of government spending. The really vital portions [1] are even smaller.

Most government spending is merely wealth redistribution.

http://www.usgovernmentspending.com/piechart_2011_US_total

[1] Vital: protecting the US from Russian invasion. Non-vital: drone strikes on random Pakistanis. Vital: protection from bandits. Non-vital: war on drug users.

Re: The Massachusetts Software Tax

#114
post #95

Earlier quoted context omitted.

Ahh, yes, "nature red in tooth and claw" and all that. Social Darwinism went out of fashion about 60 years ago. In part because its philosophical underpinnings had little to do with Darwin or evolution. For example, an alternate view is that taxes are part of kin selection, in that those people who pay more taxes end up with a social system which is better at raising successful children who continue that culture and…

Its not social Darwinism, which is a wholly distinct set of beliefs. Its actual Darwinism, or the recognition of the fact that in the state of nature killing is morally neutral and arguably virtuous (e.g. being an apex predator).

In nature there is no "morally neutral" or "virtuous". Morality is a social construct.

Advantageous? Yes. Virtuous? Nature stares at you, blinking.

Re: The Massachusetts Software Tax

#115

Until people realize that all taxes are theft, they're doomed to have new taxes imposed on the most productive of them. It's really a simple test to see whether taxes are theft or not: if there was no way for IRS to find out how much money anyone made, would people still be paying taxes? My guess is that 90% of people who preach about the social contract and helping the poor would keep the money.

If taxes are theft, then your use of roads, police, courts, eating at restaurants approved by health inspectors, and much more -- that's all theft of your own. Sorry, but taxes are not theft in any general way, by any stretch of the imagination.

If only I was paid 1 satoshi every time someone brings up roads, police and all that stuff when I say taxes are theft, I'd have more than Satoshi has.

Just try to imagine how a society without a government could function and still have all the things we currently have. Try to come up with solutions. Think about the demand side of the equation. Just for once, try to imagine how to organize things in a world where it's, for some reason, impossible to create a government. You'd be surprised of your own ingenuity.

Re: The Massachusetts Software Tax

#116
post #62
post #52

Earlier quoted context omitted.

Unfunded liabilities are spent money coming due. You can cut services in other places, but that's a similar tradeoff. At the end of the day, why live in a state that taxes you like California but gives services like Tennessee?

That's sort of how I feel about U.S. taxes in general. I paid somewhat lower taxes in the U.S. than Denmark, but it felt like I got a ton less service. Despite paying taxes, there was no public healthcare, even public university charged thousands of dollars in tuition, transit wasn't great, unemployment insurance was relatively poor, public services like libraries were overcrowded, housing assistance had a 10-year wa…

Have you seen that d3 visualization of the US federal budget? It's pretty interesting. Social security, Defense, and Medicare make up the lion's share of spending. you probably don't use these (except defense, arguably indirectly, but I suspect your politics would disagree with the budget size)

Re: The Massachusetts Software Tax

#117
post #103

Earlier quoted context omitted.

It takes some seriously deep-seeded, institutionalized indoctrination assaulting your mind through most of your life to believe taxation is not theft. If you do not pay your tax, violence is threatened and will be brought upon you if you do not comply. This is theft. It does not matter if the thief uses it for altruism. It does not matter if the thief forces roads and other services upon you by outlawing competition.…

You are free to go off-grid and live in the woods, free from the shackles of taxed services like roads, police protection and tap water. If you still make enough money to pay tax, you'll still technically be breaking the law - but I doubt anyone is going to come into the forest to put you in jail. So in practice you'll be free and clear. You could also go to a nation in sub-Saharan Africa where there is in effect no…

Surely no private company can ever come up with such technological marvel as taps and tubes and water in them.

Re: The Massachusetts Software Tax

#118

I don't understand how they singled out software developers. Why not lawyers or landscapers or pool service. Why not tax something that no one likes that can't move out of state - TV and radio ads?

Dear software engineers,

Welcome to being a large enough part of the economy to attract political attention.

Love, the energy industry

Re: The Massachusetts Software Tax

#119
post #96

Earlier quoted context omitted.

OK, you're trolling here, and if I could downvote you for it, I would; but since I can't, let me try to raise the level of discussion: > I would prefer to pay for services I use I invite you, sometime, to think about which services you really use, and try to figure out how much it would cost to purchase each of them if you were doing so on your own. Don't forget: police protection, fire protection, military protectio…

>I invite you, sometime, to think about which services you really use, and try to figure out how much it would cost to purchase each of them if you were doing so on your own. Don't forget: police protection, fire protection, military protection, paved roads, functioning traffic signals and signs, groomed parks, trash collection (some places), up to sixteen years of education, enforcement of workplace safety standards…

>As for all the stuff it does pay for, at best it costs exactly the same amount as you have to pay in taxes. But the government spends money on a lot of other things with your taxes that don't really benefit you. So you would save a decent amount of money.

So one way to look at the issue is, which costs me more: individual purchase of exactly the services I need, or public purchases of those services plus others that I don't?

This is an empirical question, and the answer depends both on what I need and what my government is currently spending money on. But in general, I think it's very unlikely that the first option could ever be cheaper, for most people and most government-provided services. This is because buying these things privately would mean I have (a) almost no bargaining power, and (b) much higher costs associated with coordinating my purchases with the needs and desires of other people.

> This applies to any service. Anything from food production to software development. A lot of people need those things, and they could cut costs if they pooled their money together for them.

I think this is actually a good starting criterion for deciding what the government should and should not pay for. The government should not pay for what I can get more cheaply or more efficiently by acting as a private individual. That doesn't mean it should pay for everything else, of course. But if sufficiently many people would benefit from something, and they can get it more cheaply by purchasing it together, there's a good case to be made for public investment.

Figuring out the line between what the public should buy versus what collections of private individuals should buy is a really hard problem. It's not always a matter of simply asking "is it cheaper if everyone pays in, or just the people who need it?" One of the benefits of a democracy is that we can have an ongoing public conversation about just where we want to draw that line.

> The fact that force isn't applied unreasonably doesn't mean it isn't there.

I agree. My point was not that the force isn't there, but that it is not the source of a democratic government's authority to levy taxes, and accordingly not the only reason that its citizens pay them. A government which people only obey because of the threat of force is an oppressive regime. I am fortunate not to live under such a government, as I think most people commenting here are too.

> There are people that don't consent. At best you could say the majority consent. You can justify it by saying it's better than any other system we know of, but not that people consent to it.

This is one of those difficult questions I spoke of. Obviously, most people do not explicitly consent to the authority of a democratic government. On the other hand, I'm not so sure it's clear that there are people who don't implicitly consent. Even people who disclaim support for the government usually don't take all possible measures to avoid its authority and benefits.

But actually, I agree that 'consent' may not be the right concept for explaining the source of the authority of democratic government. Still, I think there's something right about the consent idea, and I don't think it just comes down to our not knowing of any better system.

Re: The Massachusetts Software Tax

#120
post #93

Earlier quoted context omitted.

Tax is paying for services you use, which is very moral.

That's not really true. You can avoid most if not all government services and still have to pay the same amount as everyone else. They also have a monopoly on most things. It's not like you can go to a competing service.

Monopolies are really hard to avoid, which makes your statement seem a bit logically inconsistent. Combine that with the impossibility of avoiding services like military protection, the public education of your community members, the regulation and insurance of the financial markets your money flows through, plus a whole host of other things, and I have a very hard time believing your dream of avoiding government services is in any way attainable.
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