Free the Dishes
Legislature should nix unneeded tax
Worcester Telegram & Gazette | Friday, June 12, 2009 | http://www.telegram.com
Today's switchover to all-digital TV signals — the day the rabbit ears died — is an appropriate moment to reflect on another telecommunications issue that could have a significant impact on how some Massachusetts residents obtain their news and information. Some 275,000 residents who choose to get their TV programming from satellite services are facing imposition of a 5 percent sales tax.
Cable TV providers, of course, favor imposition of such a tax, which would add a burden to their competitors for the attention of Bay State residents looking to fill their nights and weekends with a world of entertainment choices. They liken the tax to the local franchise fees that cable operators pay to communities. Satellite TV providers disagree, arguing that franchise fees are a cost of doing business, and that placing a sales tax on satellite services is inequitable, will stymie innovation, and be bad for consumers.
If the tax is imposed, it would mean about $11 million in tax revenue for the state. Satellite providers argue that while they prefer no tax at all, any taxes that are imposed should be placed on cable and satellite providers alike, which would garner approximately $100 million.
In the eyes of a cash-hungry Legislature, we're sure either sum seems attractive. However, tax policy should not be driven by a restless hunt for revenue, but by an evaluation of what goods and services are necessary and appropriate targets for taxation. The provision of satellite TV signals by a private company, via its own satellites, to households and private businesses who choose to buy a dish and install it at their own expense, does not impose any significant or discernible burden upon municipal infrastructure. Such taxes as do apply — to the manufacture and sale of dishes and reception equipment, and upon the income of satellite TV installers and company executives — have already been accounted for. In similar fashion, most states tax radios and books at the time of sale, but none taxes the act of listening or reading.
We urge the Legislature not to create a new tax out of thin air. |
