The supporters of the internet tax may be in the support of large government services and information being handled by the internet body. Their view is that there is a need to be controlled on the internet and it can be a good source of government tax. Even though the plans are to make this official, there are already taxes that apply. We are already paying taxes for the shipped goods and as companies are registered in the business domain. The tax on outgoing and incoming emails and web pages being downloaded will lead to a lot of negative outcomes to various individuals.
To individuals who use the information to be acquired will be taxed. One will not, for instance, be able to read free online journals as it is now. To start with, the publishers of the journals with the increase in the publication pricing will start charging for the journals to raise taxes. Secondly, it will be too expensive for an individual to pay for inconveniencies like network break down while a page that is already charged is downloading. One could end up paying for a service that has not been properly used. Secondly, the internet could be free but not that free to all. There are service fees that individuals are subjected to by service providers of their networks. This means that they will be paying more fees every time they access information. Emails when charged will lead to individuals sending few mails and later preferring other alternatives such as sending letters. These factors among others will diminish the opportunities for innovations and creativity.
For students, the effects are even worse. Most students have found the internet a good resource for their research. They have also embarked on learning through online services that are deemed to be cheaper that travelling and paying for classes. The communication over the internet in the form of chats, voice calls, video-conferencing and mailing will also be paralyzed. One will, therefore, think that he or she is working on an innovation not knowing that someone had already perfected it. Most of the learning processes will be paralyzed on the implementation of such policies as the freelance aids to students will be affected as well. It will be, therefore, difficult to have remote help as the taxes won’t tolerate the time and kind of information handled. Students also depend on the class mails, blogs, chat boxes and blackboard for their learning and with the fee imposed on their internet use, they will have to dig deeper into their pockets or guardians’ pockets for more cash for school fee.
For online companies, their businesses will lose market to an extent as they will raise their charges for the services they offer. A software selling company will prefer to use alternative such as making distribution disks instead of working on online sales as the online traffic will be reduced when the customers adopt alternatives. They will be forced to increase their fee in any case they should continue online to compensate for the lost income from the customer lose and the tax payments.
The businesses and entrepreneurs have been able to market their products for free and get in contact with their clients through the free mail services. The taxing of the internet will jeopardize these actions. Due to less research, the market trends will be non-uniform as varieties of non standardized products will find their way to the markets. The recruitment processes that are curried online will also be put at a stake. It will be, therefore, more expensive to advertise vacancies and recruit. The inter-organization communication will also be paralyzed.
The companies are vulnerable to multiple taxes if the taxation scheme will be subjected to geographical boundaries. Greater problems such as the companies actually making it to their sources of hosting to sign contracts will exist as many companies are hosted from foreign countries. The taxation of the internet if implemented should, therefore, be left to the internet service providers to avoid conflicts rather than let the UN take over.