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Wednesday, August 23, 2006

Tax It And Watch It Shrink

The French, besides reneging on providing troops for the Lebanon "peace effort", have suggested a new tax to increase revenues for that bastion of progress, the European Union. Constantin Gurdgiev in TCS Daily explains how the EU is considering a tax on text messaging.

He explains how counter-productive this progressive proposal is:

The only reason that, until recently, the EU led the US in mobile telephony is the fact that landline telephone services in Europe were too expensive and poor in quality. The latter prompted strong substitution away from the landline services in favor of mobiles. Now the French are proposing to push new technologies in the direction of the old one. Just how this fits the EU's stated objective of achieving rapid growth in the R&D and knowledge-intensive sectors is unclear.

Once again the rapacious statists "kill the golden goose". And they are considered "progressives" exactly why?

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