Ramblings & ephemera

The inevitability of taxation

From Giampaolo Garzarelli’s Open Source Software and the Economics of Organization:

Whenever organizational forms present rapid change because of their strong ties to technology, public policy issues are always thornier than usual. Indeed, historically, it seems that every time that there’s the development of a new technology or production process, the government has to intervene in some fashion to regulate it or to extract rents from it. This point is well- encapsulated in the well-known catch-phrase attributed to Faraday. After Faraday was asked by a politician the purpose of his recently discovered principle of magnetic induction in 1831, he replied: “Sir, I do not know what it is good for. However, of one thing I am quite certain, some day you will tax it”.

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