The IRS Continues To Destroy The Internet

Business, Taxation
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Just when we thought that the “1099 nightmare” was going to be it for 2010, we learn of the new IRS impositions on internet commerce. These rules target folks selling stuff online. People selling 200 items or making $20k on eBay, for example, shall be subject to reporting rules. People who make a living (or complement their income) by selling trinkets online will be particularly hurt by this. I foresee a reduction in business on Etsy and similar cottage industry sites. Personal sales in the open market might take a hit, at least for marginal sellers. Some might just sell less while others will have to distribute their online activity so that they are not as easy to target. To make things worse, Paypal will be required to report online activity, meaning that they will send the IRS 1099 forms that will have to match each individual seller’s information.

The 1099 nightmare extends from small businesses to tiny one-person operations. Of course, I bet that large companies can only cheer. After all, they already have systems and personnel to deal with the flood of paperwork that the money-thirsty IRS has required from society. A great win for corporatism.

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Pundits: Play Whack-A-Mole with WikiLeaks. Oh wait…

Anti-Statism, Imperialism, Police Statism, Technology, War
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In How to Mirror a Censored WordPress Blog, I discussed how the Mises Institute open-sourcing all of Mises.org and putting its entire literature and media library online as a set of torrents will help ensure the continued existence of this treasure trove of liberty in the event of a natural disaster or a future crackdown by the US government.

Here’s a practical example taking place before us. Some technologically and strategically-incompetent pundits are clamoring for the United States federal government to use its cyber capabilities to take out WikiLeaks before the organization puts online the remaining 15,000 documents of the leaked Afghan war logs.

Kevin Poulsen of Wired.com explains how a previous attempt to take down wikileaks.org has already failed in the past and how future attempts to take out WikiLeaks will fail as well.

In 2008, federal judge Jeffrey White in San Francisco ordered the WikiLeaks.org domain name seized as part of a lawsuit filed by Julius Baer Bank and Trust, a Swiss bank that suffered a leak of some of its internal documents. Two weeks later the judge admitted he’d acted hastily, and he had the site restored. “There are serious questions of prior restraint, possible violations of the First Amendment,” he said.

Even while the order was in effect, WikiLeaks lived on: supporters and free speech advocates distributed the internet IP address of the site, so it could be reached directly. Mirrors of the site were unaffected by the court order, and a copy of the entire WikiLeaks archive of leaked documents circulated freely on the Pirate Bay.

The U.S. government has other, less legal, options, of course — the “cyber” capabilities Thiessen alludes to. The Pentagon probably has the ability to launch distributed denial-of-service attacks against WikiLeaks’ public-facing servers. If it doesn’t, the Army could rent a formidable botnet from Russian hackers for less than the cost of a Humvee.

But that wouldn’t do much good either. WikiLeaks wrote its own insurance policy two weeks ago, when it posted a 1.4 GB file called insurance.aes256.

The file’s contents are encrypted, so there’s no way to know what’s in it. But, as we’ve previously reported, it’s more than 19 times the size of the Afghan war log — large enough to contain the entire Afghan database, as well as the other, larger classified databases said to be in WikiLeaks’ possession. Accused Army leaker Bradley Manning claimed to have provided WikiLeaks with a log of events in the Iraq war containing 500,000 entries from 2004 through 2009, as well as a database of 260,000 State Department cables to and from diplomatic posts around the globe.

Whatever the insurance file contains, Assange — appearing via Skype on a panel at the Frontline Club — reminded everyone Thursday that he could make it public at any time. “All we have to do is release the password to that material and it’s instantly available,” he said.

WikiLeaks is encouraging supporters to download the insurance file through the BitTorrent site The Pirate Bay. “Keep it safe,” reads a message greeting visitors to the WikiLeaks chat room. After two weeks, the insurance file is doubtless in the hands of thousands, if not tens of thousands, of netizens already.

We dipped into the torrent Friday to get a sense of WikiLeaks’ support in that effort. In a few minutes of downloading, we pulled bits and piece of insurance.aes256 from 61 seeders around the world. We ran the IP addresses through a geolocation service and turned it into a KML file to produce the Google Map at the top of this page [go to the Wired.com article or view it on Google Maps — GAP]. The seeders are everywhere, from the U.S., to Iceland, Australia, Canada and Europe. They had all already grabbed the entire file, and are now just donating bandwidth to help WikiLeaks survive.

Cross-posted at Is-Ought GAP.

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TLS Podcast Picks: Young Entrepreneurs; Mutual Aid

History, Libertarian Theory, Nanny Statism, Podcast Picks, Technology
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Recommended podcasts:

  • TWiT Live Specials 32: The Future Of The Web. In this episode–hosted by TWiT host Leo Laport’s daughter, high school senior Abby Laporte–“Young entrepreneurs give their vision of the future of technology.” It is quite impressive and inspiring to see these dynamic, intelligent, confident, ambitious, well-spoken young people–and quite a contrast to the unfortunate ignorance and aimlessness of too many young people today.
  • Sheldon Richman’s FEE talk “Mutual Aid and the Welfare State.” This is a fascinating and informative lecture, to which the libertarian can subscribe without adopting mutualism proper, which is itself problematic (see my A Critique of Mutualist Occupancy).
  • Tom Palmer’s FEE talk Theory of Rights and Property — overall, an excellent and interesting (some of it elementary) discussion of the history of ideas, “delivered to students at the History and Liberty seminar.” Note: Palmer describes the Hayekian position on socialism and attributed it to Mises; yet Mises’s calculation argument against socialism is distinct from Hayek’s emphasis on knowledge–see my Knowledge, Calculation, Conflict, and Law; Salerno, “Postscript: Why a Socialist Economy is ‘Impossible'” and Mises and Hayek Dehomogenized. Palmer’s criticism of Bork’s famous “inkblot” comment is also a bit lacking–my view is Bork’s theory of original understanding is basically sound but that he applies it incorrectly to the Ninth Amendment. Also, Palmer denigrates Rothbard’s property views for relying “only” on homesteading–Palmer says he has a “more pluralist” view of how property can arise–but doesn’t specify what this might be. Interestingly, he observes correctly that when we libertarians say we favor property rights we of course do not mean that property has rights. Of course, a parallel observation could be made regarding the notion of “states’ rights”–when libertarian decentralists say this, they just mean the federal government has limited and enumerated powers.

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CrunchGear vs. the Tea Party on Net Neutrality

Business, Corporatism, Nanny Statism, Technology, Vulgar Politics
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Yesterday, in All Your Tubes Are Belong to Googlizon, I blogged about the Google-Verizon proposal for regulating the internet and why libertarians should oppose both it and any net neutrality laws and regulations. Today, I came across a post on CrunchGear, a tech and gadgets site, by Nicholas Deleon, that criticizes the Tea Party for opposing net neutrality on the basis that it will violate the right of ISPs to free speech. I left a comment on his post, but I’ll reproduce it here.

I’m a libertarian, not a Tea Partier, but I’ll take a stab at explaining this.

Both free markets and the right to free speech are based on the right to private property. Net neutrality, insofar as it involves regulation, violates private property rights. That said, not every violation of the right to property is a violation of the right to free speech.

“But really, to expect the ISPs to do “right” by you is laughable. If it could, Comcast and the nation’s ISPs would offer 1 mbps (down, mind you) and call that SUPER FAST INTERNET, then charge you $100 per month for the privilege of using it.”

If they could? Maybe. Maybe not. But in a free market, they could not. Restrict competition through regulations, monopoly franchises, and whatnot, and then maybe they could.

“But to oppose Net Neutrality in order to defend the free speech of ISPs is pretty laughable.”

Umm… I don’t see in the letter where they defend the free speech of ISPs. I don’t see it in the quoted soundbite either.1 More likely the speaker was concerned about the free speech of users who could be prevented by net neutrality regulations from purchasing services that otherwise might have been available, services they could have used to express themselves more effectively.

In any case, the fundamental reason to oppose net neutrality laws or regulations is that they constitute a violation of property rights.

Then I realized I had made a small mistake, so I left a second comment:

Okay, I see that in the linked article on Radtke’s quote, the reporter writes:

“The free-speech objection to net neutrality has also gained some ground recently. The National Cable & Telecommunications Association (NCTA) and AT&T began citing First Amendment objections to net neutrality in public discussions and in filings with the FCC this year.

“The free-speech argument holds that, by interfering with how phone and cable companies deliver Internet traffic, the government would be thwarting the free-speech rights of providers such as AT&T, Verizon and Comcast.”

This is the reporter’s interpretation, but let’s say it’s accurate. Is it not possible to imagine how net neutrality regulations could interfere with even the free speech of ISPs? And as “browse” at 1:58 pm UTC pointed out:

“The EFF has some great pieces on Net Neutrality. One of the issues is the Trojan Horse issue: whereby a more activist commissioner could abuse powers won in the aims of Net Neutrality to stifle free expression online. Even if they current FCC has no inclinations to regulate the Internet beyond Net Neutrality, regimes do change pretty frequently, and agendas change with them. If you look at it from that perspective, the argument you quoted above sounds a bit less crazy.”

In any case, as I mentioned in my previous comment, the fundamental reason to oppose net neutrality laws and regulations isn’t free speech but private property.

To wrap things up: That Nicholas finds the Tea Party’s free speech argument so laughable on its face betrays a leftist anti-corporate bias. Corporations are often not the good guys, such as when they seek government protection from competition. But at least corporations are not intrinsically evil. To turn to government as our savior, when it is government that is the primary enemy and source of man-made problems in the world, now that’s more than slightly misguided. In any event, Nicholas hardly gives the Tea Party a fair shake, focusing on their free speech argument as he does and not even bothering to give that a charitable interpretation or serious counterargument.

Cross-posted at Is-Ought GAP.


  1. Jaime Radtke, chairwoman of the Virginia Tea Party Patriot Federation, said, “I think the clearest thing is it’s an affront to free speech and free markets.” 

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