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Bill proposes bill break: five-year wireless tax freeze on the table
Though it's been proposed and shot down before, a renewed effort to cap federal taxes on wireless service in the US has a fighting chance of making it through Congress this time thanks to bipartisan support and a pretty crappy economy that could use all the breaks it can get right about now. Senators Ron Wyden and Olympia Snowe, representing both sides of the chamber, are trying to push through a five-year ban on tax hikes -- welcome news to pretty much any subscriber who takes even a fleeting look at the buffoonery on page one of their bill. Unsurprisingly, it's also welcome news to carriers who embrace any opportunity to lower their bills without any action on their own part; Verizon for one has come out to say that it "applauds" the legislation. How about a bill to ban 20-cent text messages, hmm, Verizon? Would ya applaud that? Thought not.
Unsubsidized iPhone prices
Stories about cell phone unlocking and resales have hit the news recently. TracFone sued numerous resellers who (legally) bought inexpensive subsidized units, unlocked them and sold them overseas. In the iPhone world, the story differs. Rather than leveraging subsidized prices, the way the TracFone defendants did, iPhone resellers added value on top of the unsubsidized units. They bought the phones, unlocked them and sold them for a profit. The story gets more interesting with the current generation "no commitment" iPhones. The latest 3G "no commitment" iPhone pricing appears to include an extra $200 profit margin on top of the $200 subsidy. TUAW reader Adam Jenkins offers proof. In Massachusetts, purchasers pay tax on the full unsubsidized phone price, regardless of carrier subsidies. The 5% sales tax for his new 16GB 3G iPhone came to $24.95. Clearly, Apple and the State of Massachusetts believe the unsubsidized 16GB price is $499, not the $699 "no commitment" price. That extra $200 offers a nice cushion on top of the unsubsidized sale, providing pure profit. What's the opposite story of resellers taking advantage of cell phone subsidies? Seems to be the 3G iPhone.
Japan to abandon iPod copyright fee
For years, legislators in Japan have wanted a portion of the price of a digital recording device (up to 3%) to go to recording companies, songwriters and artists. The so-called "iPod tax" has met opposition from electronics manufacturers, as you could imagine. However, it looks like it's not going to happen. A group failed to create an agreement yet again this week, prompting official Masafumi Kiyota to say that "...there is virtually no hope for getting the legislation passed." Certainly good news for consumers.Other electronic devices like minidisk players and DVD recorders have a copyright tax built into the price tag in Japan. The logic (if you want to call it that) is that consumers will use these devices to illegally acquire copyrighted material, so why not have them pay for it before hand, as a preemptive strike? Sounds to me like someone has contempt for their customers.
GDAA mate, Aussie developer group chief quitting
Greg Bondar, CEO of the Game Developers' Association of Australia (GDAA), will quit his post on July 12. Bondar tells Gamespot AU that he's moving on to "pursue other opportunities" after being with the organization for 18 months.The GDAA has been the group pushing for Aussie game developers to receive the 40% tax break currently bestowed upon their film-making brethren. The group is trying to prevent the continent from being left behind as various nations and states lure game developers with yummy tax breaks. Mmmmmm, tax breaks.
Wisconsin offers 25 percent tax break for game devs
Here's a little known fact about Wisconsin: Did you know that it's unlawful to run a bar in the state unless you have at least six fish hanging on the wall? And if this didn't sell you on the virtues of the Badger State, frankly get off our lawn. Unless, of course, you're a game developer with an interest in settling down in Wisconsin, as the state has announced that it now offers devs a 25 percent tax rebate just for calling it home.The move, which also includes businesses in the film and television industries, echoes similar initiatives by states such as Georgia and others to lure game developers across their borders. Wisconsin is already home to a handful of notable studios, including Marvel Ultimate Alliance dev Raven Software and Prey's Human Head, though it will be interesting to see if this sizable tax break, along with an additional 15 percent credit for "infrastructure development," will be enough to convince devs to put down roots in America's Dairyland.
Tiga: Georgia incentives highlight UK game devs need tax breaks
Tiga, a trade association for game developers in the UK and Europe, made a statement today that tax incentives in other territories are hurting UK games development. The group highlights the recent tax breaks announced by the US state of Georgia as something the government in its own country should be doing.Richard Wilson, CEO of Tiga, says the Georgia tax breaks show how other state and national governments are competing to make the most "hospitable environment for games production." He believes the UK needs to create tax credits and increase the supply of qualified graduates to grow the industry. He points out the UK can't afford to ignore "heavily subsidized competition" from competing nations. Australia's GDAA has also been pushing its government to give the games industry the 40% tax break it offers the film industry.[Via GI.biz]
Lawmakers eying taxation on digital downloads
Color us completely unsurprised, but it's being reported that a number of state politicians are looking at the possibility of imposing new laws to levy taxes on digital downloads as a method of taping up shattered budgets. Yep, anything from music to videos to books are at risk, as a growing number of lawmakers are looking to start collecting taxes from each iTunes track and Kindle eBook you purchase. Of course, this idea is far from new, and a number of US states already impose such taxes, but it seems that the ever-growing amount of content purchased online has caught the eye of those looking for new streams of tax revenue. Needless to say, the issue as a whole is about as far from black and white as you can get, but we're not asking you to take our word for it -- tap the read link to get a good feel of just how sticky the situation really is.[Image courtesy of Izzy]
UK developer consortium Tiga cries foul over Canada tax breaks
It's common knowledge that game companies have been migrating to Canada's developer-friendly shores for some time, a side effect owing more to the region's inviting tax breaks than to its scenery or love of winter sports. Now the UK's Independent Games Developers Association, a gathering more commonly known at Tiga, has cried foul, referring to Canadian government subsidies to game developers as unfair, and that by offering tax incentives "the playing field is increasingly tipped against UK based games developers."Tiga CEO Richard Wilson has issued a statement calling for the UK government to investigate whether or not Canada's tax breaks for game companies violate any World Trade rules -- something the organization feels is "likely" -- and if so, to "take action via the World Trade Organisation against Canada at the earliest opportunity." Until such a ruling can be made, however, Wilson has asked the government to "introduce tax breaks for game production in the UK in order to level the playing field against unfair competition." Honestly, nobody likes a crybaby, and if the UK would would match the efforts of Canada, maybe developers like Eidos or Ubisoft wouldn't be so keen on bundling up and setting up shop in America's great white north.
New Mexico legislators consider video game tax for outdoor programs
The mainstream media and other non-consumers of video games have been portraying gamers as pasty, bleary-eyed shut-ins since the 8-bit days -- aside from some bruised feelings, that stereotype never really did us any harm. However, a recent proposal of the powerful environmental organization The Sierra Club to the New Mexico state legislature may put a dent in the pockets of consumers and retailers living in the Land of Enchantment.The proposal calls for a 1 percent sales tax on televisions and video games; the proceeds of which would go to "outdoor education programs". According to an article in the Huffington Post, these programs would counteract the negative effects of video games -- "lower academic scores, obesity, and increased attention-deficit disorder." Supporters of the "No Child Left Inside" movement tried to pass a similar bill last year, but were unsuccessful.Unsurprisingly, gaming advocacy groups have spoken out against the bill's obvious shortcomings, such as its assumption that video games are the sole contributor to childhood obesity, lower grades and ADD. We couldn't agree more. The only weight we've gained from being gaming enthusiasts is from our skin growing thicker due to constant attacks on our lifestyle.
The Sierra Club proposes video game and TV tax
The Sierra Club -- a group dedicated to environmentalism and preservation -- has proposed that a tax be levied against kids who choose video games or computers rather than venturing out-of-doors. The tax, also being referred to as "No Child Left Inside," would ostensibly encourage kids to get up off of their fat, lazy back-ends and hit the trails, mountains, and waterways of our nation's parks and other natural treasures... by further taxing video games and TVs. Recent studies have shown links to obesity, lowered academic scores, and the rise of attention-deficit disorder in America's kids to increased time spent indoors, though we suspect the problem lies with bad parenting rather than an entire industry of game-makers and electronics companies. Would adding a one-percent sales tax on our gear (and penalizing children who have plenty of good reasons to stay inside) increase kids' desire to head outdoors instead of "finishing the fight?" We've got our doubts.[Thanks, wasp2151]Read - A Tax to RememberRead - Sierra Club proposes 'couch potato' tax
Philippines Minister dreams of cash windfall via SMS taxes
Philippine Trade Secretary Peter Favilla has proposed adding a new tax on SMS messages purportedly to offset the loss of a 12 percent sales tax on oil products. Though it would seem from an interview, that Mr. Favilla is a hater where SMS is concerned as he's quoted saying that an SMS tax would shift Filipino focus to endeavors that are more productive. We're huge fans of SMS messaging round these parts -- and remain pretty productive -- a tax on it would likely drag significant cake from our pockets, here's hoping the tax isn't a per use affair.[Via textually.org]
So-called iPod tax overturned by Canadian court
Splendid news on the Canadian front -- it seems as if that proposed tax on digital recorders and storage devices (you know, like Apple's iPod for instance) will actually not come to pass. According to Judge Karen Sharlow, the board "had no legal authority to certify a tariff on digital audio recorders or on the memory permanently embedded in digital audio recorders." The ruling enables all music lovin' Canucks to breath a sigh of relief, as it makes tacking on fees ranging from C$5 ($4.95) to C$75 ($74) in order to "compensate the recording industry for music that was copied" illegal . From here, a decision still needs to be made to clarify the legality (or illegality) of copying music from discs to DAPs, but at least we're seeing a touch of levelheadedness in the music biz, regardless.[Via ArsTechnica]
Wisconsin politician proposes 1% tax on video games
Another year, another silly bill that'll probably end with taxpayers having to pay an overzealous state's legal bills. Wisconsin Senator Jon Erpenbach is proposing a bill that will raise a child's age to be considered an adult in the state's criminal court from 17 to 18, but the way he wants to pay for "driving up costs [in] counties that administer court procedures" is by placing a 1% tax on video games and video game consoles.The Entertainment Software Association obviously went straight to the battle chest with an eye-roll and a sigh. Joystiq received comment from ESA prez. Mike Gallagher (full statement after the break) where he says, "[The bill] unfairly burdens all Wisconsin consumers by imposing a double tax on video games and game consoles ... there is no public policy support for the bill: The fact is that national juvenile crime has decreased as video games have soared in popularity." If the Wisconsin legislators don't shoot this bill down, the judges will probably do it for them later -- Wisconsin taxpayers should prepare to foot the legal bills soon after.[Thanks, Ed]
Gaming takes it in the shorts again from yet another ill-informed politician
Filefront's Gaming Today is reporting on a story that recently appeared on Madison, Wisconsin's WISC-TV. It looks as though video games are once again bearing the brunt of society's ills. This time state Senator Jon Erpenbach wants to add an extra sales tax to electronics and video games. Why? You wouldn't guess the answer even if I gave you 1,000 tries and a page full of hints.Senator Erpenbach thinks the money raised from such a [absurd] tax will help cover costs to move some 30,000 (you read that right) 17-year-olds, who are currently treated as adults when convicted of non-violent crimes, back into the juvenile system. Excuse me? Why are video games being targeted for this exactly? Erpenbach says the tax isn't to dissuade gamers though. His reasoning? "The idea being that this is kind of a kids-kids thing, in other words, if we're going to do this for kids maybe this would be a good way to go about it."And this guy is state Senator? I'm getting increasingly angry at what amounts to blind shots in the dark aimed at the video game industry. I hope you are too. Sooner or later we're going to have to fight back against the stupidity running rampant through this country as people try to lay blame on someone or something other than themselves. For the whole illogical blow by blow, check out the entire report on Gaming Today.
Study to equip cars with tracking hardware, send testers faux bills
We've been hearing about these highway use tax trials for years now, but apparently, a new $16.5 million Road User Charge Study will be looking for 2,700 mettlesome individuals that won't mind driving around with a tracking unit riding shotgun. The absurdly expensive initiative is purportedly seeking to figure out whether Americans "would accept the idea of paying by the mile, instead of by the gallon." North Carolina-based Innovation Management -- which will "oversee the study" in the Triangle region of NC -- proclaimed that folks who volunteer to take part in it would have their vehicle fitted with "GPS and computer hardware to track the miles they travel through each state and local government jurisdiction." Best of all, however, is the tidbit noting that these very guinea pigs will also receive "make-believe bills" each month displaying what taxes they would owe if they were indeed being taxed per mile. Anyone want to guess how much revenue they could rake in from accidental payments?[Via The Wolf Web, image courtesy of WRAL]
EU approves tax breaks for developers
The European Commission has approved film industry tax breaks to the video game industry. The request was made by the French government and the program will offer a 20% rebate to games that have a "criteria of quality, originality and contribute to cultural diversity." It is estimated that half of the games created in Europe this year would have qualified for the rebate. There's obviously some easy French jokes that could be tossed in here, but let's build bridges, shall we?Governments recognizing games as "culture" and supporting the industry with tax incentives is an issue that's popping up with developers all over the world. Canada is kind to developers, while Australian developers (last time we heard) continue to fight for tax breaks in their country where the film industry actually gets a 40% tax rebate. The countries which cut the costs, promote the industry and look yummy to developers already strapped for cash.
Canada's Copyright Board slaps tax on music downloads
Just a few months after it deemed it suitable to reinstate a levy on digital audio players, the Copyright Board of Canada looks set to stir things up once again, with it now ruling that music downloads should be taxed as well. That decision comes after the Society of Composers, Authors and Music Publishers of Canada (or SOCAN) had pushed for such a levy, a position the Copyright Board appears to have sided with entirely. Under the new rules, online music stores will have to pay 3.1 cents for each individual track and 1.5 cents per track for entire albums sold directly to SOCAN, which will in turn distribute the funds to the artists. Sites that offer temporary downloads or customizable radio stations will also be facing taxes, although the board hasn't yet released a decision for those that offer music on personal websites. What's more, according to CanWest News Service, the levies will be retroactive all the way back to 1996, which is when the music industry first started pushing for the tariffs.
Scientists test pay-as-you-go driving
Researchers from the University of Iowa Public Policy Center have developed a system for charging drivers federal taxes by the distance traveled rather than on gallons of gas purchased. The study is being conducted with 2,700 drivers from states like Maryland, Texas, Iowa and California to gauge public reactions and experiences with the system. The basis for the study is the declining tax dollars being paid for car use in the States; as fuel prices rise, cars get more efficient, and alternatives like ethanol and hybrids gain ground, our 18.4-cents-a-gallon tax on gas (which was set in 1993) remains static, thereby making it harder for The Man to get paid. Eventually, the government will have to find another way to generate tax dollars from drivers -- and researchers think this might be it. Instead of paying a constant fee on the fuel we purchase, drivers cars are equipped with a taxi-like meter, and users will be given a monthly bill for the miles that they've driven. We can only hope this is avoidable, perhaps due to the spontaneous existence of a free, plentiful, environment-friendly fuel source... or another revolution.[Via Autoblog]
Australian developers still want their tax break
The Game Developers Association of Australia (GDAA) has followed up previous calls by writing to the Government's arts minister and opposition minister asking that the game industry receive the 40% tax rebate offered to the film industry. The GDAA says that the break would bring in an extra $5 million a year of investment capital in Australian developers." We have a commitment to ensuring that participants in the interactive entertainment industry are equally competitive with our overseas competitors," said Greg Bondar, executive director of the GDAA. The Australian request is similar to the tax breaks in Canada which have brought more investment into their country's game industry. Well, here's hoping for the tax break, because that'll be a g'day for GDAA. Oy, that was awful.
Swiss consumers facing tax on digital audio players
It looks like Switzerland is going down a road other countries have traveled before, with a Federal Court now confirming a tax on digital audio players and other devices that had originally been slated to go into effect in March of 2006. That date ended up being pushed back after complaints from various groups, some of whom deemed the tax to be too high while others thought it was too low, according to SwissInfo. The court apparently found the tax to be just right though, and it's now set to go into effect next month, tacking anywhere from $25 to $75 onto the price of various audio devices, including flash and hard drive-based digital music players, as well as other hard drive-based audio/video recorders. Seems like our gadget-happy Swiss friends just can't catch a break these days.[Thanks, Jonathan D]
