Germany taxes the internet

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The power to tax is the power to destroy. The internet has proven rather a bother to many of those with power, allowing anyone with a computer to reach a worldwide audience. Now, our friend David Kaspar, of Davidsmedienkritik, a fine site keeping track of media and events in Gemrany, brings news of Germany's plans to tax the internet.

Germany's 16 states agreed on Thursday to introduce from January 1 a licence fee of 5.52 euros (3.70

pounds) a month on computers and mobile phones that can access television and radio programmes via the Internet.

Any household or company that does not already have a licence will have to pay the new levy, which is the same as the one currently charged for radio access, state premiers agreed at a meeting in the town of Bad Pyrmont."

Finally, a bold step in the fight against Germany's high unemployment! Taxing the internet and advanced communications technology will certainly earn us the respect of all foreign nations.

And there's even more good stuff to come — a 3 percent rise of the value added tax to 19 percent on January 1, 2007!

I guess Germany will serve as a shining example of tax policies gone mad in Economics 101 courses all over the world...

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