Canada Taxing Blank CDs? 196
Anonymous Coward writes "Canada has restarted talks on a tax of 74 cents per 15 minutes on digital recording media that is scheduled to begin on January 1st." It's interesting that when DAT was taxed, the format never caught on. Then again, CD-ROM is already a popular format. For more on the DAT issue, which this very closely parallels, RMS has an interesting article that appeared in Wired about 7 years ago, titled "The Right Way to Tax DAT".
Taxing is the Candian Way (tm) (Score:2)
7% provicial tax (Ontario)
8% GST (federal tax)
74 cents per 15 minutes (so another 2 dollars)?
I'll tell you though, I'm reaching my limit.
Wow... (Score:1)
Maybe there is hope for the guy yet.
I'm screwed (Score:4)
Brian Adams
Celine Dion
Sarah McLaughlan
And yes, I'm being just a tiny bit sarcastic. Thank god for mp3.com
Why the term "digital recording media" is absurd (Score:1)
Digital recording media? You mean like the binary digits on my hard drive? I figure, since my MP3s equate to about a megabyte per minute of stored audio data, then my next 2.3 gigabyte drive would cost me $113 in taxes alone.
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Keep in mind (Score:1)
-Lisa
And hard drives? (Score:1)
MP3 all the way, I guess (Score:1)
State tax, 1% Income tax in the state, about 5k a
year in property taxes, 33% income tax, 53% gift tax, marrige tax etc etc. Taxing for the hell of it is tyranny. Anyway the recording industry does not like this. They do not get a share of the taxes and therefore it makes their product out right m0ore expensive to their target audience. THe are already having trouble fending off mp3s all over the net and now this? If this does happen I could see some real big friction betweem the music industry and the canadians. You might not just be paying more for just the tax, the rec. industry might also raise the price of cds to cover their losses, 25 dollar cds anyone? (of course with the exchange rate that is probably what you pay already
Re:I'm screwed (Score:1)
Holy shit.! I'm going to get $1.38 per day relief. That won't even pay the tax on one %^&$#^ CD.
Hard drives? (Score:3)
If you assume that music is stored as uncompressed 16-bit 44.1kHz 2-channel samples, an 8GB drive contains roughly 54 15-minute units, for a total tax of 0.74*54 = C$39.96, which is not bad.
On the other hand, if music is stored as 112kbit stereo MP3s (using the rule of thumb that 1MB=1min), that same 8-gig drive can store 559,240 units of 15 minutes, for a total tax of C$413,837.60.
I personally would find that excessive.
Hello, Reality's Over Here. (Score:4)
B. At over $2 per CD-R, I'd buy my media from Afghanistan if I had to.
C. Copyrighted material can be stored on lots of other media- attempting to tax one media is a slippery slope... what, are you going to add a $200 tax on hard drives because you could store music on them?
A+B+C = somebody's smoking crack.
Hard Drives are Digital Media too. (Score:1)
What about software vendors? They'll have to pay tax on these even though they are original content creators.
Just some thougths
J:)
Here's the worst part (Score:5)
You're dead-on right, though. Taxes or penalties on new media formats (be they CD-ROM, DAT, or MP3) HURT independent musicians. I've never ripped a CD to my DAT deck, but I've recorded a heck of a lot of original stuff with it.
e-commerce to the rescue (Score:3)
Re:Why the term "digital recording media" is absur (Score:2)
January 1st (Score:2)
What I can't stand about this is, what about software piracy?! There are some $15,000 programs floating around which probably have been copied a time or two. It's not just the recording companies that are being ripped off.
Further more, there are plenty of legal uses for cd-rs.
grrrr.
15 minutes determined how? (Score:2)
Copyrights? (Score:4)
If I pay a surcharge on a CD to cover someone's copyrights, I think I should have the RIGHT to store music on that medium.
Just another thought
J:)
Re:And hard drives? (Score:1)
And if the DVD audio standard is approved (was it?), then recordable DVDs are _never_ going to get a chance to survive in Canada. You figure that right now the media costs about $50 (anyone confirm that?), if/when it ever comes down in price there is still going to be a $30 surcharge that Canada would be plopping on top of that (assuming 5.2G per DVD)
I can find blank CDRs for less than the Canadian tax on 15minutes of audio...sheesh.
15 mins CDA vs. 15 mins MP3 (Score:1)
Buy on the internet from a US company. (Score:2)
Think big! (Score:1)
Well, I certainly hope they don't insist on charging me based on MP3 compression ratios!
After all, every audiophile worth their salt knows there's nothing quite like 8-channel Surround-sound style (corners of a cube, listener at centre, speaker placement) recordings at 176.4KHz.
Smuggling? (Score:3)
Or, more likely, various Indian/Native American reservations along the border will add CD-R's to their shelves, along with the duty-free cigarettes and liquor. If the taxes are high enough and demand is high enough, it'll be worth it.
Re:Taxing is the Candian Way (tm) (Score:2)
As a Canadian who keeps up on current events, I know that this tax was scheduled to go into effect last January (that is, Jan 1, 1999 not Jan 1, 2000). It was held back because of the public and (mostly) corporate outcry over it. Last I heard, it was being held off indefinitely. You can read about Bill C-32 here [http] (it is an amendement to the Copyright Act). The bill did pass, and is legislation, but has not been implemented (as such that a consumer would notice any price differences).
This tax would extend to cover all recordable media (audio cassette tapes, CDs, video tapes, etc - not pre-recorded media), and is designed to help reduce copyright infringement of copyrighted materials.
Re:Keep in mind (Score:1)
A short list of Canadian Artists (Score:1)
So, Tax on Redhat? (Score:1)
And if heaven forbid I burn a blank, I'd be REALLY pissed...
Is this an obvious question? (Score:1)
But most of us are NOT pirating... I hope (Score:1)
Had I moved to Canada, this would mean that I'd be paying somewhere in the neighbourhood of $11.00/day to continue my perfectly legal hobby.
How would they decide how much the tax is for things digital multi-track stuff? 74 cents per 15 minutes per pair of channels? or would something that accepts an hour and a half of 8-track digital audio now be taxed at $17/tape, as it can hold 6 hours of 2-track digital audio?
Re:I'm screwed (Score:1)
You left out Alanis Morrisette. It is amazing that the Canadian government would not at least exempt from the tax blank CD's used for recording of new music and for later resale or export. The government is stepping on its own local music businesses!
Doesn't the US do this? (Score:3)
Taxing is the Candian Way (Score:1)
Re:Keep in mind (Score:1)
What this tax seems to do in my eyes is create a market. I never would have thought of copying an audio CD and handing it out to my friends before, but maybe I'll start doing that if this tax goes in.
Treat me like a pirate, and maybe I'll start acting like one.
Ways around everything... (Score:1)
As for CD-Rs, I imagine they'll probably only end up taxing the "audio"-grade and not the generic, no-name "data" kind. People that pay premiums for "audio" grade _anything_ deserve to be ripped off, IMHO, and, according to the article, 60 percent of you Canadians agree with me.
- A.P.
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"One World, one Web, one Program" - Microsoft promotional ad
Re:Keep in mind -Keep this in mind also. (Score:1)
One more thing. I bet the majority of cd-r's sold are not used to copy music. Many people use them to copy programs and games, so when is the SPA tax coming into effect? I know I can't wait for it, what about you? What's that one going to be? $5 a cd? Ever used a cd-r to back up a hard drive? Well, now it might cost $20 more (assuming your hard drive is 6-7GB and you don't use compression -that's around 10 cd's). That can sure build up if you're doing weekly or even monthly backups. And where does that $20 go? Well, maybe $5 goes to Bryan Adams, $5 to Celine Dion, and $10 goes towards some record exec's vacation. Do they need the money? No. Does the money help that talented garage band around the corner get radio time because of the tax? No, in fact the tax will probably cost them money too, as I explained above.
So, keeping all that in mind, answer just one question: Do you honestly think the tax is going to help those who could need it? No, you might as well be stealing from the poor and giving to the rich.
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Re:Wow... (Score:1)
Initiative idea: "Coaster" rebates (Score:3)
Seriously. If a recording is botched and the media are not recoverable, you should be able to get a refund of the tax you paid. In practice the recording industry would be forced to refund the tax on every disk returned. That would sure teach them.
Further consequences of this would be that Parliament would be forced to criminalize the importation of recordable media for refund (fraud, y'know) just as Michigan has criminalized the import of out-of-state soft-drink containers for the ten-cent deposit. Now wouldn't that be fun!
Finally, if you're lucky, you might even get everyone to agree that the whole thing was a rotten idea and that it ought to be scrapped. But you have to force the system into the exercise of the reductio ad absurdum first, so get moving!
Me, a criminal? (Score:2)
I was a criminal when a friend copied me on a CD the music that him and his band did.
I was a criminal when I did copy a Linux (RedHat) CD-ROM image.
I was a criminal to backup some important files on CD-ROM. I was a criminal when I kept a copy of my music CDs for myself in MP3 format (on CD-R).
I'm sure plenty small companies that need to give software to clients (by burning a CD-R) will love being considered criminals too...
Re:Keep in mind (Score:1)
Re:Next! Tax guns: give money to shooting victims. (Score:1)
Re:US Senator (Score:1)
Time for a new product - "Data Only" CDs (Score:2)
Re:15 minutes determined how? (Score:2)
Re:I'm screwed (Score:1)
You wouldn't believe who was on that episode. A very young Mike Myers playing a kid in a special olympics.
My eyes opened fairly wide.
Relax... (Score:2)
If enough Canadians make a stink about this they may just drop it (after all they already backed it off for almost 6 months for the same reason).
Even if they do pass it, it will not last long. Someone before mentioned about people heading across to the US or getting blank CD-Rs from Natives on border reservation. Well, the same thing happened a few years ago. Cigarettes, clearly a dangerous product that should not be promoted in any way, used to cost $7 Can a pack. When the US stores and smoke smuggelers began to make gobs of money while mom and pop stores in downtown Toronto went out of business, the hue and cry of a relatively small affected group cause our Prime Minister (Jean Chretien) to drop the taxes so that smokes are now about $2.50 to $3.00 a pack.
If the public can force the government to drop the price of smokes by more than half in one shot (literally $7.00 on Monday and $2.35 on Tuesday morning), dropping the CD-R tax should be real easy.
Re:Taxing is the Candian Way (tm) (Score:1)
HMM- mp3 encodes at about 1MB/minute $1(Canadian) per 30 Megs Hard Drive space. That means the tax on my 13.6GB Hard Drive would have a "levy" of $453 dollars.
OUCH
Opportunity knocks. (Score:1)
Re:January 1st (Score:2)
This is absoulutely true. I looked into the draft for the document which did go through, and the fees are retroactive. However, what people fail to mention is that the $.79 per 15 mins is proposed. The US already imposes a levy of this form, and all this dates back to some international agreement made a long time ago. Canada is one of the last countries to get in line on this thing.
The fact that retailers have not jacked up their prices 100% indicates one of two possible scenarios...
If I was a lawyer, I would have a copy of the document lying around to draw references from... but after careful reading in late 1998 and early 1999, these are the conclusions I have drawn. This whole thing will almost certainly blow over as such a small fee that the whole thing will be a non-issue.
Aside from what I learned reading the document, The concept of paying the recording industry big bucks because I want to back up my HD, or a small band wants to distribute some work independantly, leaves a horrid taste in my mouth.
Also of note is that people who are in medical need of digital audio media are exempt from the tarrif. If we are infact hit with a wicked fee for importing CDs, there could be a huge market for blind technicians... after they burn a CD, it is no longer digital recording media, and consequently, they are free to redistribute it free from tarrifs. The document prevents them from redistributing "digital recording media" without the recipients paying up, but it does not indicate "personal use", nor does it mention write-once media. :-)
Did you read the article? (Score:1)
Next time, read the article before stating complete falsehoods.
As a fellow musician, I'm inclined to agree... (Score:1)
Reminds me of Tom Green's "Scuba Hood" segment. Stealing money from the poor and giving it to the rich. He went into a mall with scuba gear and stuffed money from the fountain into a bag and brought it into a bank and just gave it to them. He got banned from that mall.
"Turn off that camera!"
"Ok, it's off
Actually, I have a friend who knows someone at ATI. Apparently they're really pissed off about this because they use a lot of CDR media. They intend to fight. This is a "guilty whether your proven innocent or not" thing.
Well, as long as there are rich people/entities actually fighting for us. That doesn't happen often.
Re:Taxing is the Candian Way (tm) (Score:1)
It seems to me there's no clear place to draw the line here. Just about any type of digital storage can be used to record video and audio data. Hell, you can store the stuff in DIMMs.
Re:The newest crime industry: CDR smuggling! (Score:1)
Re:Time for a new product - "Data Only" CDs (Score:1)
Problem: $CDN Exchange Rate (Score:1)
That's why I was so happy when chapters.ca finally pulled it head out of it's arse and did a proper website. They aren't as good as amazon, but at least I can afford the books
Let's learn a lesson from our US Cousins... (Score:1)
www.parl.gc.ca [parl.gc.ca]
Hey, who knows... It might actually work.
Re:Keep in mind -Keep this in mind also. (Score:1)
I made the statement because I knew some people would misinterpret the tax to be on music cds (I have already seen some people make that assumption).
-Lisa
Screwed up logic... (Score:2)
How can you tax people based on the reasoning that they're going to do something illegal? It's either illegal and they should be punished for it, or it's legal and you tax it. It shouldn't be both.
Re:A short list of Canadian Artists (Score:2)
Re:Me, a criminal? (Score:1)
Gougers (Score:1)
First of all, the tax was to be placed at the manufacturing level so any CDRs currently in distrubtion didn't have the tax on it. Why the hell did the price go up then? It has taken many months for CDRs to come back down to around $2 in a pack of 10.
Now I guess, the price is going to jump again even before the tax.
This reminds me of the oil prices. Whenever crude oil goes up the price at the pump instantly goes up. But when the price of crude drops the price at the pump stays up because the gas companies say they have to clear out the oil in the supply channel first. Think about that for a moment.
Re:Wow... (Score:1)
Yes, their output diminished to virtually nill. They broke up over squables of which not the least were money related. When was the last time the Beatles issued a new release? How much material have the surviving members released as solo artists during the years since the split?
Once you have a lot of money, many of the motivations to write new material is gone. No worries about putting food on the table (or to buy drugs). The whole teenage angst thing doesn't really work as a motivator anymore once you are a multi-millionaire.
Now this doesn't happen to every band, but it seems like it happens frequently enough to be a valid consideration.
I wouldn't mind this (Score:1)
#1 - it were spurred by complaints by artists of piracy
#2 - said money was being used to pay the artists...
Instead:
#1 - Artists being screwed by labels is incredibly commonplace, whereas pretty much the only artists that have successfully screwed a record company are the Sex Pistols...
#2 - Seems record companies keep bigger and bigger slices of the profits as music moves from LP to Cassette to CD... Cost's of production lower, prices rise, and the artists get a smaller and smaller take.
Therefore, though I can't speak for canada, I hope to join or start a class-action suit should they ever try that here. Besides all that, I have plenty of uses for cassettes, DAT's, CD-R, and just about anything else that in no way even approaches the record industries territory.
That all said, I know some people with 200+ CD collections of pirated CD's... I don't condone or agree with it, but their stance is "The band won't get more than a dollar from this CD anyhow"... Should we penalize the users of the mediums for the reputation the labels have hoist upon themselves?
I Am An Idiot (Score:1)
I was off by a mere factor of 1024. The 8GB drive, of course, can store only 546 15-minute increments, which would make the tax C$409.50. Which is excessive, but not quite as bad as the earlier figure.
(post && (!caffeine)) == bad;
No (Score:1)
You bet (Score:1)
A friend of mine who had five part-time jobs in the tax year had to pay almost $1100. Gee, any idea why the guy had so many jobs in the first place?
I like the idea of protecting Cdn culture, but we don't need the CRTC. If the music is good, people will listen. OTOH, CBC, spare us your crappy sitcoms! Documentaries and news and hockey is what you do best. More Daniel Richler and Avi Lewis (but forget Ralph Benmergui, pleeeeez)
I'm lucky to live in Alberta, which has no PST, just GST...I can only pity ppl in the maritimes - that's like, 20% PST + GST.
Re:Doesn't the US do this? (Score:1)
Most computer CD preparation software can create ISO9660 data images, red book audio images, and even arbitrary byte stream images (ext2 works on a CD). The same 650 MB / 74 minute media is used for both.
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Re:In a perfect world... (Score:1)
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"I already have all the latest software."
Bif Naked! (Score:1)
Tak on
-Moist
-Concrete Blonde(they may have broken up, but Canadian they were)
-Joydrop
-Great Big Sea
-54-40
-Tragically Hip
etc
Re:Taxing is the Candian Way (tm) (Score:1)
Shady deal (Score:1)
I alse believe the best way to combat this is to encourage that ALL digital media be taxed (at $.75/MB ala MP3). The public would them go crazy when they find out that it costs $8,000.00 to buy a 10GB hard drive. The government then would repeal the tax, and taxing media would be such a sensitive issue that no government in its right mind would ever try something that stupid again.
My $0.02.
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"I already have all the latest software."
Re:A short list of Canadian Artists (Score:1)
All men to be jailed 3 days/year to offset rapists (Score:1)
Socialism at work. (Score:1)
In Canada you will now pay almost $2 in taxes on blank CDs.
Hey you guys should revolt, wait a minute you guys are in a socialist nation, you've been disarmed by your government.
Come one down south, we're willing to accept people who want freedom.
LK
Re:Problem: $CDN Exchange Rate - Too true... (Score:1)
Re:US Senator (Score:1)
Wait, you already are fucked. Never mind.
Media Tax as a Copying License (Score:1)
Anonymous Coward, sometimes you can be a real jerk, but this time I think you have made a brilliant point! I almost can't believe that this is the same guy who wrote "First Post?"
This is a point that needs to be highly publicized: The media tax is a copying license. Scream it from every rooftop: "You have already paid the alleged victims for the right to copy their work, so feel free to do so!"
Maybe if the word gets out, the record companies will shit a brick and lobby for the law to be repealed. The law is based on the assumption that everyone is a criminal, but the actual sales are based on the fact that most people aren't, and they find it against their conscience to steal musician's work. If Joe Average, who doesn't want to steal, can be convinced that it isn't stealing, because he paid for the right, then I think all hell would break loose.
Hmm.. I wonder. If I interpret the media tax as a license-to-copy, and it is tied to another product (media) so that you can't purchase one without also purchasing the other, does that mean there's a case for anti-trust? :-)
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Have a Sloppy day!
Re:Taxing is the Candian Way (tm) (Score:1)
Oh, and didn't William Shatner put out a record once?
Re:Buy on the internet from a US company. (Score:1)
Re:Time for a new product - "Data Only" CDs (Score:1)
Governments never learn, do they?
oldie goldies (Score:1)
Re:I'm screwed (Score:1)
Celine Dion == Bitchy Diva
Alanis Morrisette == went way too far with the nudie music video.
and Sarah McLachlan... well, spell her friggin name right!
It Could be less worse (Score:1)
Before you begin whining... (Score:1)
Re:Smuggling? (Score:1)
Maybe this will promote smuggling of blank CD-R's across the border, like during Prohibiton. I can see a modern-day Elliot Ness smashing boxes of CD-R's with a bulldozer.
Yeah, except not the flow would be heading North instead of South....
But hey, thats right, you Yanks DO still owe us (or at least our criminal underground) for doing that for you. What's more, considering Canadian beer is superior product to American swill... when do we see all those cheapo Gold-backed CD-Rs?
If you're going to charge me I may as well do it (Score:1)
If I'm paying a copyright violation fee, tax, whatever, I may as well do it if I'm paying for it.
It sure makes it harder to feel bad about it anyway.
Re:Next! Tax guns: give money to shooting victims. (Score:1)
Bye Jean!!
Re:Wrong! Conusmer CDR decks won't record on 80c C (Score:1)
Re:Here's the worst part (Score:1)
Re:15 minutes determined how? (Score:2)
And even more if one instead records 32kbps MP3 using the full 5 MHz bandwidth of a video signal...
Re:Clear line: primary purpose (Score:1)
No, but I could claim, with all honesty, that I am thinking about buying a hard drive to move my existing MP3 collection onto. I would want this drive to hold 2G, seeing as how my current holdings are about 1G. That would be quite a little tax, seeing as how 1M holds 1Min of music (roughly).
D.O.A. (Score:1)
Re:Wow... (Score:1)
The assertion is that the recording industry supports the recording industry and a few star artists, not all artists. Thus, the industry will propose law to help itself, not to help the artists. Being that we think the art is good and the industry is irrelevant, we should advocate laws that support the artists.
With DAT copying, you could have a good underground music network, much like with MP3s. If the taxes actually went to the artists whose work was copied instead of the recording industry then we could legitimatize this underground copying because it wouldn't deprive artists of their money.
If you think about it, there are probably more pirated copies of small artists' music than the stars, in relation to the total number of copies sold. This scheme would benefit the small artists because they're the ones who don't have contracts with the recording industry that would put their music in all the stores.
Re:Taxing is the Candian Way (tm) (Score:1)
What's wrong with that ?
You have a problem with USA ?
Re:Buy on the internet from a US company. (Score:1)
Re:Time for a new product - "Data Only" CDs (Score:1)
Ah-HA! That explains all the wierdness in CD-R's that I see!
I thought that CD-Rs were CD-Rs, regardless if they were used for music, data, etc. But now, you can buy "MUSIC-QUALITY CD-Rs". Heck, there's signs posted saying "Ad Correction: The xxxx CD-R's were inadvertently advertised for music purposes. They are not."
I don't know about you, but they all look similar to me...
Anyhow, what will they tax CD-RW's? (3 for CDN$12 at a more expensive store). After all, you can erase, rewrite with your favorite artist, when artist is boring, erase, and rewrite with current favorite... (Not for play in regular cd-players, but a useful way to not carry CDs to work)
argh... (Score:1)
Who would bother recording material from some unknown starving artist. Alanis Morrisette, RUSH, Bryan Adams, etc... Fuck off already. You get enough of our damn money from Concerts, T-shirts, and tape sales. Do you really need another $10 million when you have $200 million already. Enough already.
To the already over-paid artists who will benifit from this, I say: Try pumping gas for a living so that you can feed your family. Then tell me that you believe it is ethical to charge an additional tax on blank media.
The tax presupposes all blank media purchases are made in bad faith with the intention of copying copywritten material.
I say, fine, charge me the tax, but make the distribution of pirated material legal.
Re:Taxing is the Candian Way (tm) (Score:2)
Think what you want!!!!! (Score:1)
All the Canadian Governement is good at, is stealing from the poor, and giving to the rich!!!
I may not know that much about politics, but at least, as a Canadian, I know that we vote for someone, and all they do is put money in there pockets, and for a thank you note, they write to us by adding more taxes
What is the capacity in minutes of a CD with MP3? (Score:1)
Re:Taxing is the Canadian Way (tm) (Score:1)
And we have no room in the US to be smug. Taxes here are pretty high, too, and the politicians are no more realistic here than there.
Re:Taxing is the Candian Way (tm) (Score:2)
... but takes with it anyone using recordable media for legal purposes. Ergo, it's a blanket tax. Like charging everyone in the city for a 'parking' tax, regardless of whether or not you own a car.