Internet Tax Freedom Act to become permanent
Imagine if you were taxed on the volume of emails that you received and sent, or by the traffic to your business website? Thankfully Congress put a law in place back in 1998 that has kept that from happening.
The Internet Tax Freedom Act was created to foster the growth of the internet at a time when it was relatively new, by prohibiting any level of government from imposing discriminatory taxes on internet access. This law also prevented taxation on electronic commerce, meaning that if you reside in Texas and buy a book online from Powell’s Books in San Francisco, you cannot be taxed on that purchase by both states.
State and local taxation permanently banned
However the law placed only a temporary moratorium, and has been renewed several times over the past 17 years with only minor adjustments. In June of this year, the House passed its version of the Permanent Internet Tax Freedom Act (H.R. 235) to permanently ban state and local taxation on the Internet.
The Senate had lagged on their version known as the Internet Tax Freedom Forever Act (S.431) but was extended by a continuing resolution into next week. Members of a House-Senate conference committee approved a permanent extension of the Internet Tax Freedom Act as stated in section 922 of their December 9th House Report accompanying the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644).
Sales tax debate continues
Congress is expected to finalize the permanent ban by the end of the year, by amending language in support of the PITFA to the larger legislation. Any states that were grandfathered in due to having taxes in place prior to 1998 will be required to phase out their taxation over the next few years.
The sales tax debate will continue as the moratorium applies only to the internet access taxes. The conference report recommends a temporary extension until June 30, 2020, for multiple and discriminatory taxes on electronic commerce. Vendors and purchasers may still have to deal with the issue of remote sales tax in another five years.
Lobbyists fighting hard to keep it untaxed
Meanwhile three major telecommunication associations including the National Cable & Telecommunications Association, CTIA – The Wireless Association, and the United States Telecom Association are urging the Senate to support this permanent legislation to “ensure that every American can afford to participate in the digital economy…” in their December 14, 2015 letter to members of the U.S. Senate.
As representatives of the largest fixed and mobile broadband providers including Comcast and Verizon, these lobbyists also warned that expiration of the ITFA would likely increase cost of broadband access in part to “an imminent threat” due to the Federal Communications Commission’s reclassification of broadband services as a Title II telecommunications service in February of 2015.
The good news for business
What’s most interesting about these groups’ support of the legislation is that the ITFA was at the forefront of last year’s debate regarding their reclassification as part of the FCC’s net neutrality order, and requires that Internet providers treat all web traffic equally – no blocking of lawful content or services, no throttling and no paid prioritization.
In the long run, this legislative change will help keep the cost of doing business online down for new and small business owners.
Missing office culture while working remotely? This tool tries to recreate it
(BUSINESS NEWS) This startup just released new software to help you reproduce the best parts of in-person office interactions while you work from home.
Are you over working from home? Feeling disconnected from your co-workers? Well look no further: The startup Loop Team just released a tool that reproduces the office culture experience virtually.
“We’ve looked at a lot of the interactions that happen when you’re physically in an office — the visual communication, the background conversations, the hallway chatter,” said Loop Team’s founder and CEO Raj Singh in an interview with TechCrunch. “[W]e built an experience that effectively is a virtual office. And so it tries to represent the best parts of what a physical office experience might be like, but in a virtual form.”
Singh’s company, founded pre-COVID, is posed as a solution to feeling “out of the loop” while working remotely. During the pandemic, where virtually all of us are working from home, this technology is needed more than ever.
How it works is by essentially recreating an office experience on a virtual platform. Somewhere between Zoom and Slack with some added features, Loop Team lets you know who’s free to chat, who’s in meetings, and allows you to have private discussions using audio, video, and screen share. It’s ideal for working on projects together.
Loop’s layout is unique in the sense that it is designed to show you conversations in a clear, direct way – exposing relevant items and hiding the rest. Also, employees who miss meetings have the ability to review what they missed, making it perfect for companies that hire across time zones.
The platform was made available December 1st free of charge, but Singh is hoping to introduce a paid version next year. Pricing will likely reflect team size and should remain free for teams of 10 or less.
I’m a big fan of software that allows you to feel closer and more connected to your co-workers. Do I think anything will ever compare to a true, in-person office experience? Definitely not. That being said, I value this kind of progress, especially since I don’t think office culture en mass will make a return any time soon, regardless of vaccinations.
MIT report reveals serious flaws in US unemployment system
(BUSINESS NEWS) In the wake of COVID-19, the US unemployment system is floundering to cover all who need the aid but it comes with serious flaws.
Last week alone, nearly 1 million Americans filed for unemployment benefits. Now that it’s urgently needed, this safety net is full of holes, leaving many Americans in freefall.
A newspaper from the Massachusetts Institute of Technology has highlighted several of the critical weaknesses in our country’s unemployment social safety net.
The report outlines how benefits fall short in three major ways: Duration, eligibility, and payment amounts.
The historical purpose of the benefits system was to replace half of lost wages for 6 months while they looked for another job. (The MIT paper even suggests that a more appropriate “replacement rate” would be higher than that.)
As of 2018, unemployment payments only cover Americans for one-third of their lost wages on average.
The income caps for these benefits have stayed fixed while wages have increased over time. That’s bad enough without considering that wages haven’t nearly kept up with worker productivity in the US, meaning those caps haven’t kept up with the real worth of those workers at all.
Compared to other developed nations, the US has lagged behind in public benefits since well before the pandemic.
In 2014, the Organization for Economic Co-operation and Development compared the duration of unemployment payments around the world. Out of 34 developed countries, the US ranked 33rd— offering less than every country on the list but Hungary.
To quote the research brief for the paper: “Even aside from changes driven by technology and trade, employers’ increasing reliance on contract workers and on-demand scheduling rather than on permanent employees who work predictable schedules has added to the precariousness of many workers’ jobs.”
And those economically vulnerable groups who need the support most are more likely to have jobs that aren’t covered under federal unemployment eligibility.
This includes gig workers (thanks to prop 22), part time workers, and the self employed: People often work these jobs due to constraints like parenthood or disability.
The CARES Act, which passed in April, temporarily allowed certain groups who would usually be ineligible, like the self employed (who are poised to grow in numbers as the job shortage persists) to collect unemployment benefits.
But CARES and HEROES are going to end in December, taking the extensions to unemployment, the eviction moratorium and the COVID sick leave requirements with them.
And instead of extending them, Congress may soon be looking to cannibalize those programs and their unused funds for another round of corporate stimulus spending.
But if the coronavirus relief acts are allowed to expire, nearly 14 million Americans will lose the aid that they provide.
Tis the season for employment scams – here’s what to look out for
(BUSINESS NEWS) Fueled even further by COVID unemployment numbers, seasonal employment scams are back on the menu. Here’s how you can avoid them.
With the sheer amount of desperation people are feeling these days, it’s only fitting that employment scams would see a resurgence this holiday season. Thanks to the Better Business Bureau, there are some clear warning signs that can help you spot and avoid seasonal scams this year.
The typical crux of any employment scam revolves around a prospective employee’s willingness to pay for something upfront, be it training or some other kind of quasi-justifiable item (e.g., a uniform). However, other iterations of the scam actually involve an “employer” overpaying for something at the onset—albeit with a fake check—and then asking the recipient to wire “back” the extra money.
Either way, these scams can leave you jobless and with less money than you initially had, so here are some things for which you should watch out.
Firstly, employers shouldn’t ever charge you before hiring you. Some industries do require employees to make small purchases on their own dime (i.e., the aforementioned uniform), but payroll will usually deduct the cost of these materials from the employee’s first paycheck—not require payment upfront.
As a general rule, it’s probably best to avoid companies that charge you at all. Aramark, for example, is known for requiring employees to buy company clothes—and they’re no peach to work with. But desperate times may warrant an exception in this regard.
It’s also to your benefit to avoid postings that boast an “interview-free” experience. Put simply, no one is hiring sans an interview unless it’s nepotism or a scam. If you aren’t related to the poster, that doesn’t leave much up for interpretation. Similarly, advertising a large sum of money for disproportionately low amounts of work is a pretty big warning sign–again, in this economy, people aren’t shelling out for packing or wrapping jobs.
Finally, watch out for jobs that ask for a work sample before hiring. While this is common for internships, most entry-level positions aren’t going to require you to complete a project for free before determining whether or not you’re good for the job. At best, this is a tactic to get free work from you; at worst, your application information can be stolen.
It’s sad to think that people would stoop to the level of scamming others amidst the dumpster fire of a year it’s been, but if you avoid these red flags, you should be able to keep yourself safe during this holiday season.
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