The Blog Tax: Updated 8/27

By
Lynda Giddens
– Wed August 25, 2010Posted in: Blogging

This week, bloggers all over America were rocked when the Philadelphia Citypaper, among other news outlets, published an article indicating the city required all bloggers with any ad or affiliate links on their site to pay a fee of $300 for a “business privilege license”. There are two clear camps: those who are outraged at being taxed when they don’t even make enough money off the affiliate links and ads to pay for the cost of their hobby and those who agree that if you want to open up an avenue to be paid for your blog, you ARE a business and should be taxed as one.

Is the Government Double Dipping?

For my hobby of blogging, I pay hosting fees at $120 yearly and yearly domain fees of $10. I also paid for my logo, the core design and two books on blogging: 31 Days to Build a Better Blog and the Copywriter’s Scorecard. All of this is paid out of my pocket from the piddly amount of money the government lets me keep from what I earn.

To get paid for ads and affiliate programs, I must provide my social security number and guess what? I need to report that money earned in my yearly income taxes. While I might qualify for a tax deduction (I’ve never looked into it), the cost to maintain my blog is still responsibility to pay and likely in the first few years of blogging, I’m not going to make enough money to even cover that cost.

The government takes nearly 40% of our total household income through their various programs (social security, medicare, income taxes). Almost half of the money I make goes to the government. That’s tens of thousands of dollars and in most cases, it’s ridiculous or impossible for me to be able to figure out what that money is going toward.

08-01-10 - License Plate

People are very afraid of information being on the internet. Polled on Twitter, most people would blur out their license plate number. I searched Google for a compelling argument to do so and couldn’t find any real threats. Should we really not second guess the government’s preconceived notions about the internet?

Being an American comes at a very high cost and what is our benefit from this? Why exactly are we so accepting of new taxes? Most localities already have rules regarding starting a home based business, what qualifies, what licenses are needed for a DBA or incorporation… Now a “business privilege tax” is added on top of this?

Doesn’t the Government Deserve to Control Content?

Isn’t that a really stupid question when phrased that way?

Today Outspoken Media claimed the tax is a good thing and will ensure only serious bloggers are allowed to have blogs. What? Freedom of speech is only allowed of the articulate? Or super organized? An editorial calendar may be magnificent for some and for others, especially those who are more artistic than business savvy, they rely on spontaneity to drive their blog. Who the eff are you to tell someone HOW to publish or that they are not allowed to self-publish unless they’re super “serious”.

The article itself and the comments are an excellent read. I think that argument is baseless and not very Constitutional. Is the internet a privilege? Or are we a different type of society which is generally self-sufficient? The government is scared senseless of the internet and it drives that fear into its citizens. Exactly what right does the government have in restricting the content that’s publicly available? How is forcing blogs off the web through ridiculous taxes benefiting Americans? How different is this from book burning and censorship?

08-01-10 - Fence - Sicily LTS Texture

Are we being fenced in and censored as Americans? Why should only the rich (and if you don’t think coming up with $300 for a hobby is rich – YOU ARE RICH) be allowed to have a voice on the internet and try to seek compensation for some of their blog maintenance fees and time?

Is a business privilege tax needed if you self-publish through Lulu.com and let friends and family order it with a small profit going back to you? Do kids mowing lawns and selling lemonade over the weekend need to get a permit to accept payment?

Our Duty as Americans

I don’t care what Bush tried to drill in our heads after 9/11, the government is supposed to be scrutinized. We are to hold our representatives accountable. We need to educate ourselves and participate in local government elections if we want to make any difference at all. And we must be vocal. The Constitution in its wisdom allowed citizens freedom of speech. When does freedom of speech go too far? If you’re yelling, “Fire!” in a crowded theater when there is none. (How similar is this, by the way, to trolling in blogs and forums?)

This basic freedom granted us as citizens of the United States did not come with limitations other than this.

We’ve allowed huge corporations to take over instead of supporting local, small and family based businesses. We’d have the money to pay a little extra for quality, customer service, love and to boost local economy, but the government takes almost half of what we make. Go watch, Wal-Mart: The High Cost of Low Price to see some of the things the government lets a huge corporation get away with.

I’m horrified anyone supports a $300 “business privilege tax” from the government. Does anyone supporting this have any clue what the money from this tax will be used for? Yet you don’t think twice about paying the fee… why?

Update: 8/27

The Wire released the article, 5 Myths About Philadelphia’s Blogging Tax. So basically, it applies to any business or individuals filing 1099s. (Freelancers or others working for themselves.) The article itself is a bit strange. It seems to stop abruptly with no conclusion and no clear point being made. The author makes it sound like there’s some secret society of these $300 lifetime licensed business owners and only they know what the laws are or how to get around them. This is the very last sentence:

“They stick together. They have to. They’re the only ones who know. Nobody else knows anything.” (Read More)

It seems like the author’s trying to draw a conclusion, but isn’t actually putting it into words.

Apparently some larger publishers are given a First Amendment exemption – they don’t need to pay the same fees asked of bloggers running “business” on their website in the form of ads and affiliate links. The city gets to interpret how to read its laws and if you’re an individual the city decides to make an example of, woe is you. Tax evasion is so super serious in this country that you can be jailed for it. Does that make sense to anyone else? How are people refusing to pay taxes a threat to their community? If they’re purchasing things through local businesses, they’re already giving back to their community at least somewhat. Are these people horrible enough to be treated like murderers and rapists?

My position remains after reading The Wired’s article. Our government is broken and we need to work together to fix it. If it isn’t already too out of control TO be fixed. This economy is EFFED up and the government is actually discouraging people from making money for themselves to pump back into the local economy. Meanwhile, larger corporations are getting political favors and get tax deductions which are unreal and clear favoritism.

It makes me sick. This isn’t progress, it’s censorship.

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