home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
Hacker Chronicles 2
/
HACKER2.BIN
/
295.SAMPLE.LTR
< prev
next >
Wrap
Text File
|
1993-07-26
|
4KB
|
82 lines
Date: 07-25-93 (19:38) Number: 4305 of 4305 (Refer# NONE)
To: SYSOP
From: FRED HAPGOOD
Subj: draft of letter
Read: 07-26-93 (09:08) Status: PUBLIC MESSAGE
Conf: MassModemTax (16) Read Type: GENERAL (+)
Dear Gov. Weld:
I remember that when I read Justice Marshall's pronouncement that
the power to tax is the power to destroy I thought it a
rhetorical flourish. The past few months have shown me how wrong
I was.
For years I have been calling an electronic bulletin board in
Cambridge called Channel1. This is a remarkable business,
built from nothing but the sweat equity of two people, Brian
Miller and Tess Heder, and their dedication to giving the highest
level of service in the industry. Their success has been taken
as an example of what is possible in this state and country, and
over the years a number of stories have been written and
broadcast about their achievement.
Earlier this year the DOR informed Brian and Tess that they were
going to be billed for more than $150,000 of back taxes -- an
astonishing sum, considering the small income stream of their
business, and twice over enough to put them out of business.
This bill is based on two elements: a 'use' tax and a brand new
tax that the DOR is 'experimenting' (its phrase) with: a data
services tax.
The use tax is at least a tax with legislative and judicial
history behind it. The flaw in the DOR claim is that the use tax
is not a publicized tax -- it is in theory a general tax,
applicable to all taxpayers, yet appears nowhere (that I can see)
in the literature given the public about their taxes. In my
opinion part of the function of the DOR is to educate taxpayers
about their liabilities. They ought not to be collecting back
payments (plus 18% interest!) on taxes where they have abdicated
this responsibility. A private company would not be allowed to
bill its customers for charges that had not been disclosed during
the actual sale. It seems clear to me that the DOR should not be
permitted standards of conduct that would be immmoral and illegal
in any other individual or organization.
Perhaps there is room for a difference of opinion on that point.
I am deeply shocked by the other component of this charge; DOR's
experiment with taxing data services. A few years ago the
legislature explicitly exempted data services from sales tax,
while permitting a tax on telephone services. The DOR is now
experimenting with declaring data services telephone services for
the purpose of collecting sales tax. There are dozens of
companies in Massachusetts selling data services. Of them all,
only Channel1 has been targeted for this noxious experiment in
label manipulation. I am astounded by this. It is like watching
the secret police of the USSR at work.
It is obvious to everyone that data services will be the next
megaindustry. Channel1 is a small but model company in this
industry, a business of extraordinary quality, winner of many
national awards and known throughout the data services industry.
Their case is already widely discussed all over the internet.
You do not need me to point out that if the DOR puts Brian and
Tess out of business though such sleazy practices the news will
travel widely and impress itself deeply on those building this
industry. Data services is not a business that depends on local
resources. If we want to drive it out of this state, nothing
would be easier. And putting Brian and Tess into bankruptcy
court would be a great beginning.
---
■ SPEED 1.30 #1339 ■