|
|
 |
|
The
views expressed
on this page are soley those of the author and do not
necessarily
represent the views of County News Online
|
 |
Taxing Times
By Kate Burch
Some years ago, Ohio instituted a sales tax, now 5.75%, on satellite TV
services. The cable TV providers successfully lobbied to avoid
the tax, claiming that a sales tax, on top of “franchise fees” the
cable companies were required to pay to the state, would put them at a
competitive disadvantage. The satellite companies have tried
several times, unsuccessfully, to achieve equal treatment. The
Ohio Supreme Court affirmed the satellite tax, accepting the cable
lobbyists’ argument. The U.S. Supreme Court refused to hear the
case.
The satellite companies’ position is that the tax is unfair because it
does not treat like services alike. They say it is like the state
giving a discount to people who buy a Chrysler, but not to those who
buy a Ford. They also make the case that the tax unfairly
penalizes rural customers and those who live in lower income areas who
often have no opportunity to choose cable because the cable companies
do not service their communities. Another point they make is that
the “franchise fees” are paid to the state in exchange for the right to
install cable, which involves digging up streets and hanging wires on
public property; these are a cost of doing business, different from a
tax imposed on their customers. The satellite companies claim
that the state’s policy is tantamount to the government choosing
winners and losers in the marketplace.
Now, Governor Kasich has proposed levying an equal sales tax on cable
TV services, in order to achieve parity. This proposal will be
reviewed in the Ohio Senate. Another option, of course, would be
to remove the sales tax from satellite services (on a cold day in
Hell.) Ohio is, by the way, one of only eight states that imposes
a sales tax on pay-TV services.
To me, this is a good example of how numerous difficulties can arise
with imposition of the incredibly complex tax codes we have at the
state and national levels. Bureaucrats’ attempts to be “fair”
seem to inevitably tick someone off, and then come the lawyers.
So much trouble would be avoided if we scrapped the tax code and
financed the government with a consumption tax, such as the
FairTax.
In the meantime, if you have an opinion about the satellite tax issue,
contact your state Senator and let him or her know about it.
|
|
|
|
