I’ve now heard several Talk Show hosts ringing the alarm bell “…and now they want to tax bloggers!” Alex Jones has been the most erroneous which is not surprising given his lack of concern about the “Truth” and things like facts.
The story that triggered this was the person in Philadelphia who was charged $300 for a business privilege license – because their blog generated income.
If you don’t blog expecting to make money, then there is no tax. Note that the law in Philadelphia requires registering even if you lose money in you “business” because it is partly a tax on gross income.
An effective method to curtail the common folk’s ability to fight back against the entrenched power structures that have emplaced so many barriers to impede the common folks.
“The power to tax is the power to destroy.” One may quibble attribution to Daniel Webster, Chief Justice John Marshall, or both, but the upshot is the same. Government controls us more and more via the taxman. Vestrum noscite hostem.
This sounds like it’s really a tax on citizen stupidity. If you’ve got a revenue-producing blog and you reside in Philadelphia, wouldn’t it be trivially simple to register your blog domain at a PO box outside the city or in another state? Why would you even apply for a city business license if you’re working from your attic/basement and are clever enough to create a popular blog or website?
I believe the source of the connection is the person filed a Schedule C (Business Income) on their Federal Tax return. The IRS provides data to states for State taxation purposes, and the city can get it from the state. It isn’t about where the blog is located, it’s about where the person is while they perform the work. Where the server is located is not relevant. If it was, then Chicago would want to tax them (or wherever the server is).
If they really did only receive $30 in income, that’s below the requirement for sending a 1099 to the IRS. That income would not have had visibility with the IRS. On the other hand, if the person used the $30 in income to write off a portion of their house as a business expense…. It’s hard to argue writing off an office in your home as a business expense and then tell the city you don’t operate a business inside the city.
Have you noticed this web site has no revenue stream? :)