The cash crisis hitting the American government has taken a turn that will have bloggers across the land quaking in their Keens - a tax on blogging.

According to the Philadelphia City Paper the city has been examining last year's tax returns and has identified a new profit source. Bloggers and other online writers who derive a few dollars in advertising revenue from their hobbies are being asked to fork out $300 to purchase a business privilege license from the city.

For example, Marilyn Bess, who blogs about organic gardening, has received a letter instructing her to buy one of the licenses from the city and also requesting a cut of the estimated $50 in revenue the site generated.

"The real kick in the pants is that I don't even have a full-time job, so for the city to tell me to pony up $300 for a business privilege license, pay wage tax, business privilege tax, net profits tax on a handful of money is outrageous," Bess said.

The move will send a shock through the Silicon Valley blogging community. California is almost effectively bankrupt and a plan like this could start giving state legislators nasty ideas.

24 Aug 2010