Saturday, March 17, 2012

SocialMarketplace Foolery

Here we go again with another misguided push for sales tax on internet sales as a way to help states short on cash raise revenue. Come on folks, we live in a global marketplace that will self adjust to an internet sales tax amongst the States by moving internet business out of the country — and killing more jobs in the process.

Sure, initially some additional revenue might come into States, but that will just have to be spent on increased unemployment and welfare support for internet businesses that lose market share out of the country and have to either close or scale back their operations (lay off workers, close stores, and more). Might as well toss in loss of more jobs by American manufacturing that will now be done elsewhere because it makes even less sense to make something in the HIGH TAX US, ship it out of the country and back in to avoid taxation.

Taxing internet sales is basically like putting a bandaid over the cancer of politically centralized Social MarketPlace (SoMP) run amok.

The answer to weak government revenue to pay for more politically driven SOMPs isn’t more taxes, it’s promoting less centralization and politicization of the SoMPs. It’s out of control government run SoMPs that are driving out of control spending that is leading the push for more taxes… More taxes is akin to pouring gasoline on a fire.

The solution isn’t squeezing the flourishing internet sales market with more taxes, rather it’s opening up the politicized SoMPs so they are more individually driven rather than politically driven. Yes, this requires thinking out of the box -- a new paradigm if you will. Sadly, thinking out of the box is also something that the LOSERship of both parties are very weak at -- their solution for a a square peg and a round hole is to just pound harder, and charge the markets for all the pounding they did to 'solve' the problem until the cancer of Politicized SoMPs outgrows their bandaid and more pounding is required. Never mind that the "square pegs" of commerce and entrepreneurship are figuring out that moving operations out of the US is an increasing viable solution to achieving global marketplace success.

Marketplace Reality Check -- Politically driven SoMPs are inherently inefficient, costly, and insensitive to normal marketplace evolution — good or bad, programs grow and grow. Individually driven SoMPs are inherently efficient, cost effective, and very sensitive to normal marketplace evolution — good ones prosper, bad ones fade.

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