This Makes No Sense
Wednesday, August 25th, 2010If you have a blog, especially one that is monetized, you may want to pay attention. We all know that municipalities are cash strapped and looking for any way to make some money. Philadelphia is no different. The city is sending bloggers $300 bills, which is the cost of a business privilege license. What amazes me about this is… who is digging around trying to find out who has a blog with monetization? Does the very small amount of money a blogger makes really warrant some city official spending time researching to see from whom they can get 300 bucks? Apparently there is a small number of bloggers who have made a very tiny amount on their blogs and reported it who are now receiving these letters saying they have to pay for this “business privilege license” plus pay taxes on whatever small amount of money they earned.
I get that we are supposed to pay our taxes, I do. However this seems to be extreme. Most bloggers don’t make enough money on their blogs to even consider the paperwork that this would require. If we were talking federal standards, you can make up to $600 before you have to claim it on a return.
Municipalities all have their own rules and tax laws, but this is reaching so far into people’s pockets that it seems just plain money grubbing. And it feels like an invasion of sorts. Big Brother – we knew you were lurking around somewhere – who knew he reads blogs?
As the new taxes roll in in 2011 I think we can expect to see more and more of this nonsense. If you sit on a city council somewhere and have a say, please try to use a little common sense about this kind of thing. If someone makes $15 a year on a blog, I think a business license is a little over the top. I pay my babysitters way more than that. Crap. Maybe I shouldn’t have said that out loud. Now the government it gonna want me to 1099 the 13 year old nieces I pay to watch my kids once in a while so they can send them a tax bill and a request for a purchase of a business license. Sorry, Kenzie and Katie.
Cities, politicians and the federal government have all been trying to find ways to tax the web. Because we are a service based company, we don’t pay a sales tax on what we sell. Instead we have to pay a commercial activity tax. We have all heard how the FTC and FCC would like to try and regulate the web, and I am sure part of the reason is to find ways to tax. Taxing bloggers, right now seems to me to be coming out of the realization that some of them do make money on their blogs. SOME. The vast majority don’t make one thin dime. Some even pay to have their blog up, so then they are operating at a loss. This just doesn’t make sense.
Do you have a blog? Would you continue with it if you knew you would have to buy a business license and pay taxes on it? Does this make any sense to you?
More information about the Philadelphia Blogger Story can be found at the Washington Examiner.





