Archive for May, 2009

Taxing Email is Useless

Derek Thompson at the Atlantic blog writes about a NY Times piece on taxing email. He’s not advocating it, or arguing against it but looking at the supposed benefits and negatives, and how it would likely increase instant messaging.

What would be the effects of an email tax? I’m not sure it would make such a big difference. To save my daily pennies, I know I would lean more on Gchat or other instant message programs, and I’m sure everybody else would too.

Would that be taxed next? If email can be taxed, why not aim? However one of the key benefits touted by both the Times article and Thompson is that it would curtail the deluge of spam that we all recieve. You know, hey spammers send a lot of email, let’s just tax email, then we not only get less spam, but make money too! Anyone see any holes? I do. How do you keep track of emails and then send the tax bill?

Such a tax is feasible, he says, since e-mail addresses are easily identifiable by Internet service providers and they could pass on the levy in their monthly bills to users.

The problem with this? This isn’t how spam works. Spam is sent from “zombie pc’s“, meaning unknowing grandparents and non-netsavvy people are going to get a huge bill come due for the spam sent. Furthermore, the government will always be behind in technology, there’s just no way spammers and people wouldn’t be able to get around the tax through forged email headers, botnets, tor networks, ect. This will end up costing the unfortunately honest people and not the dishonest ones it’s targeted to.

Let’s also not overlook the liberal arrogance of the Times piece:

You might gulp at the $3-a-day cost for 100 e-mails, but don’t forget you pay more to gulp your daily large caramel macchiato.

For one thing, $3 a day is a lot of money in a year ($1095), for another, I have no idea what a caramel macchiato is.

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GPS System Could Break Down Next Year

On the bright side, I’ll be able to save battery life on my iphone by turning off the gps. The downside of course being that the gps is increadibly useful.

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Pulling Strings in Foreign Relations

Seems to be an awful lot of “testing” going on.

Mutiny in Georgia!!!

Iran attacks Kurdish guerillas in Iraq with helicopters

Pakistan is melting down!!!

Chinese Ships Come Dangerously Close to American Vessel

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Georgian Mutiny Put Down

Georgia has stopped a tank battalion mutiny. Naturally the Russians are suspected of being behind it. I’ve been wondering if President Obama will continue support for Georgia, and cause the ire of a belligerent Russia.

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Fed To Bailout NY Yankees

Admit it, you had to think for a second about whether this was serious or not didn’t you?

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New Zealand’s Sign on the Door

No Fatties.

Some Lenders Object, Why Not Others?

20 Chrysler lenders or about 30% of the debt Chrysler owes lending institutions are objecting to getting fleeced in the governments planned “surgical bankruptcy” plan. In a normal bankruptcy the senior secured creditors (the lenders) are first in line, while unsecured lenders (UAW) and equity holders are last. This is the basis for the lenders’ complaint:

Creditors object to the way the restructuring benefits the United Auto Workers union, which is an unsecured creditor, for the $10.6bn Chrysler owes to its retiree healthcare fund.

“What’s happening is the senior secured creditors are going to get 29 cents on the dollar and the unsecured creditors are going to get $10bn,” said Mr Lauria.

Now I think the obvious unasked question is, if the lenders are getting such a raw deal, why are only these institution objecting? what about the other lenders making up 70% of the loans? Your indirect answer is present toward the last half of the article.

Chrysler’s four main banks – JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup – had received about $90bn in government bail-out [TARP] cash.

Now we see why these banks are going along with losing all this money. They are scared of the government’s wraith. After Congress almost retroactively changed their contracts with AIG, and Attorney Generals outright threatened AIG executives physical well being, these TARP banks realize that the government is NOT bound by following the rules of law and can punish them for not acting in the government’s best political interest, namely, making sure the UAW is placated.

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