Taxing the Internet By the Ignorant

For John, BLUF:  Taxes should be used to encourage new economic areas, not to freeload off them.  Nothing to see here; just move along.

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Over at the blog site Samizdata blogger Perry de Havilland wants to know, "How do you say “astounding stupidity” in Hungarian?".  The cause of Mr de Havilland's outrage is the fact that the Hungarian Parliament has just voted to put a tax on the transfer of data on the Internet.

As the blog post points out, this is a way of stifling high tech industry and the creation of new ideas.  But, Hungary is drifting away from the ideal of a Liberal Democracy (not a Progressive Government, but a Liberal Democracy).

The reality is that taxes create social policy.  They can encourage or discourage economic growth in certain areas.  Taxes must be thoughtfully applied.  And, of course, they should not be so complex the rules and rulings take up a bookshelf of space in some lawyer's or accountant's office.

Yes, we absolutely need taxes, to pay for our government's actions, but we need to think about the impact of our taxes.

Hat tip to Samizdata.

Regards  —  Cliff