Want To Know How Not To Encourage Innovation? Double Taxes On Technology

from the welcome-to-argentina dept

Last week, VentureBeat wrote about how politicians in Argentina, including the country’s president, were pushing a plan to nearly double taxes on all tech products not made in the province of Tierra del Fuego. As the article notes, it’s not clear why Tierra del Fuego gets this special benefit, but the whole idea is one that will massively harm innovation and economic growth in the country. Raising most taxes, in general, when the economy is sour is generally a bad idea (there are some exceptions), but doing it on the very tools that increase productivity and economic growth in every other industry? Not only do you harm the tech industry, but you harm pretty much every other industry that uses technology to innovate and increase productivity.

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Comments on “Want To Know How Not To Encourage Innovation? Double Taxes On Technology”

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13 Comments
Anonymous Coward says:

The exception in Tierra del Fuego makes sense, as Tierra del Fuego is generally free from taxes, and it’s proposed as a production center for technology. The fact is we (argentinians) have almost no indigenous technology factories, and that’s why it doesn’t make sense. If we did have technology factories, I’ll be absolutely pro taxes on *imported* technology goods. As is, the whole plan makes no sense. And as has been pointed elsewhere, it’s a measure that affects the poor more than the rich, preventing them access to technology, already very expensive in Argentina because of the exchange rate with the dollar.

Jack says:

Ridiculous

I thought Obama was supposed to be the modern President. Why is he trying to tax technological innovation? That is so ridiculous. Although he is better than Bush, there are alot of things I am surprised at about Obama. I guess the democrat side of him wants to raise taxes so bad that he doesnt care of the consequences.

Jack
Registry Cleaner Tech Support

Anonymous Coward says:

Hopefully the politicians in Argentina at what’s happening in California, which is allegedly the world’s seventh-largest economy. Onerous local and state sales tax increases have turned technology buyers into tax cheats who are buying online from out-of-state vendors. The government of Argentina will live to regret the decision to slap on a ‘technology tax,’ because of the unintended consequences of an educated and pissed off middle-class who will find a way to avoid paying the taxes entirely, just like the consumers in California have done.

Anonymous Coward says:

Re: duh hit the send button too quick

Hopefully the politicians in Argentina will take a look at what’s happening in California, which is allegedly the world’s seventh-largest economy. Onerous local and state sales tax increases have turned technology buyers into tax cheats who are buying online from out-of-state vendors. The government of Argentina will live to regret the decision to slap on a ‘technology tax,’ because of the unintended consequences of an educated and pissed off middle-class who will find a way to avoid paying the taxes entirely, just like the consumers in California have done.

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