RE: OTP, OECD and tax collection

[Steve Schear <schear@lvcm.com>]

At 4:09 PM -0400 10/5/98, Smith, Chris wrote:
>     Viewed from this point, I would suggest that it is essential that such
>     an infrastructure develop if international e-commerce is to succeed. If
>
>     a merchant or manufacturer can make a significant and legitimate claim
>     that their local interests (and those of their customers and employees)
>
>     are being damaged by international e-commerce, then many local
>     governments would move to take action. Since such moves are designed to
>
>     protect local companies (and their employees) they would likely receive
>
>     strong support where it matters - in votes. They are not likely going
>     to be swayed by the idea that all consumers can benefit if they will
>     just switch from real-world to e-commerce.

Perhaps I harbor naieve view. I see the Internet as an opportunity to
enable global (but not international) space for communication, commerce and
culture. To any extent possible, I and many others on Net would like to see
emerging Internet standards which allow persons to operate as non-nation
state citizens.

>
>     What might they do?

Not much. Even though bearer forms of digital cash have been little more
than curiosities so far, this is unlikely to remain so.  Once DBCs become
easily and anonymously available it should spell the end to both
consumption and income taxes within a generation or so. Only VAT on
meatspace transactions within a country's borders and property taxes may be
reliably collectable. Nation states are no more likely to curtail DBCs and
their impact than the Church (with its on-pain-of-death punishments) was
able to keep the press from being used for anti-Catholic and secular
publication.

Once people and merchants realize they can ignore many taxes via Internet
commerce they will feel no more guilty or freightened than early VCR owers
were of copyright violations.

--Steve


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