Small Business in a Big World

August 26, 2010

Tax for Blogging in Philly?

[tweetmeme source=”LilBizBigWorld” only_single=false] Just this Monday, there was an uproar because of the issue that Philadelphia will start imposing tax on bloggers who made money. According to the Philadelphia Inquirer, there is no tax to be imposed. It is just a business-privilege license one needs to pay for. The amount is said to be $300 lifetime license fee and it will be paid by those bloggers who make money from writing blogs. Now, in this day and age, blogging is like second nature to most people. Granted, a blog can increase optimization for a certain website which in turn makes more money but that hardly is a reason for the state to impose a lifetime business-privilege license for it.

Blogs are being used by most small business owners, apart from joining and promoting their businesses on social networking sites. It gives business operators a chance to market their product, make sure their customers and their networks know what the latest is regarding their business and generally to get more people to follow their success, with an underlying agenda of increasing their target market. Yes, blogging can be considered a staple for business operation and there might be some paltry sum you can get from ads or other ways for it to solely generate income but it still does not justify the $300 lifetime license fee.

This license fee would only be imposed to those living in Philadelphia however, we should see the bigger picture. If there would be limited bloggers in one area which promotes local business, the income generation may be affected. More people would intend to leave the city and start their business in another city and this could be problematic to small businesses.

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