Addendum - Bangkok West

This is an addendum to yesterday's post and clarification

In light of yesterday's story about the teenage stripper, the Providence Journal this morning carries the following story, Providence legislator seeks to ban underage stripping

Rep. Joanne Giannini, D-Providence, said she is working on a bill that would ban anyone younger than 18 from working in strip clubs.

The story goes on to say that the teenager in question was from Massachusetts and was using a fake ID to get the job at the time.

This case may be an unusual and exceptional one, but it points to piece-meal approach that the legislature goes about when dealing with critical public policy issues. Loopholes whether by intent or ignorance are a hallmark of this part-time one party body. Short term and narrow political thinking have been the SOP (standard operating proceedure) of the RI Assembly for all too long. But as long as the people of RI are happy beggaring each other, it will continue.

Bangkok West? - Rhode Island Sex trade policy

The sex industry is a lucrative, pervasive and corrupting reality in the world today. Sex tourism is industrial policy and a major source of revenue for such "developing" nations as Thailand, Viet Nam, Philippines, Mexico, and Rhode Island.

What? Rhode Island?

Yes, there is a long and questionable history of a sex industry in Rhode Island. By intent or neglect, it thrives today. In today's Providence Journal there are two stories which point to the connection between the state's third world political culture and its sex industry.

First, on the Editorial page, focuses on the continuing debate about criminalizing prostitution. The question of sexual exploitation is a key element in the debate. But this is also an industrial policy question for the legislature. Private clubs and spas that can offer sexual services, albeit not "openly," but as long as it is done behind closed doors, are a major draw to the darker side of the Rhode Island tourist trade and economy.

In an OpEd piece: David Segal/Edith Ajello: Don’t turn prostitutes into criminals

01:00 AM EDT on Tuesday, July 21, 2009

Rhode Island state representatives David Segal and Edith Ajello write:

"...Many writers on these pages believe that many women who sell sex in Rhode Island do so against their will, that they are trafficked to Rhode Island by contemptible international syndicates. Somehow, they say, these women would be better off were we to empower police to arrest them, and the courts to imprison them.

We think that idea runs counter to the ideals and very purpose of our criminal-justice system: Since when do we arrest and punish the victims of crimes? Human trafficking is obviously a despicable practice; its magnitude in Rhode Island remains in question. "

While Segal and Ajello present the argument for and against criminalizing prostitution, they state that their primary concern is that criminalization would not help the victims of trafficking. This is a fair position if they had an answer. But the only way to solve the problem, according to them, is to wait.

Their conclusion is,

So, rather than enact legislation that will only make matters worse, let’s heed the advice of the experts. The Urban Justice Center’s Sex Worker Project put it succinctly. The solution to the human-trafficking problem “is more effective and vigorous enforcement of federal anti-trafficking legislation and passage of strengthened state anti-trafficking legislation, not the wholesale criminalization of the very persons you seek to help.

Their solution, if I read them correctly, is that it is too complicated for us -- "let the federal government solve the problem."

The second story raises questions about why our legislator and city councils are unable to solve the school funding issue. Is it because keeping kids in school might hurt the tourism industry?

Minors in R.I. can be strippers

01:00 AM EDT on Tuesday, July 21, 2009

By Amanda Milkovits, Journal Staff Writer

PROVIDENCE –– Rhode Island teens under 18 can’t work with power saws or bang nails up on roofs.

But dance at strip clubs? Sure. Just as long as the teens submit work permits, and are off the stripper’s pole by 11:30 on school nights.

According to the article

"State law says that anyone who employs a person under 18 for prostitution or for “any other lewd or indecent act” faces up to 20 years in prison and up to $20,000 in fines. But that isn’t enough to prevent underage girls from working in strip clubs, said senior assistant city solicitor Kevin McHugh, who researched the issue a dozen years ago when a teenage dancer was found at a raided strip club."

So why was this issue not addressed 12 years ago?

The article goes on

"When questioned about Rhode Island’s law, Michael J. Healey, a spokesman for the attorney general’s office, offered a copy of the current state law but did not comment for this article."

Nevada which has build itself on silver, sex and gambling has a more child friendly law than Rhode Island.

Again from the article,

Nevada, meanwhile, doesn’t let anyone under 18 work in casinos or in public dance halls where there is alcohol — and there are no strip clubs in Nevada without one or the other, or both, said Cartwright, of the attorney general’s office. Minors aren’t even allowed to deliver mail to brothels.

So, 12 years ago our political and justice administrative leaders learned that children were stripping for money in clubs which serve alcohol. Their solution was to do nothing, as they probably will do again. And now our legislators are proposing we do the same for those who, may drop out of school, and instead may graduate from dancing to the more lucrative profession of prostitution, willingly or as victims. And where is the line between child pornography and legitimate artistic expression.

There is a third world sex industry in Rhode Island which should and must be regulated -- through prohibition and/or strict regulation.

Thinking Outside the BOX: Tax the Tagger Graffiti artists????

Thinking outside the box is an occasional off the wall thought that might make sense in Rhode island.


Here is an interesting way to control graffiti. Sign painting is subject to sales tax. Why aren't we collecting sales tax from either the owners of the property being tagged, or from the taggers themselves?

Think About IT



STATE OF RHODE ISLAND - DIVISION OF TAXATION
SALES AND USE TAX
REGULATION SU 02-08


BILLBOARDS AND SIGNS



Tax applies to retail sales of signs, showcards and posters, and to charges for painting signs, showcards and posters whether the materials are furnished by the painter or the customer.

Where a billboard or sign manufacturer fabricates a sign and delivers it to the customer, who either installs it or has someone other than the manufacturer install such sign, the sale by the manufacturer of such a completed sign constitutes the sale of tangible personal property and the tax applies. This category would also include signs that are wholly fabricated in the dealers' shops but delivered to the job site in two or three sections as a matter of convenience, provided, that either the customer or some person other than the sign fabricator affixes such sign to the building. The rental of such signs is a rental of tangible personal property and is therefore taxable.

All signs which are fabricated by a sign company, whether they are completely fabricated prior to reaching the job site, or whether they are fabricated at the job site, or whether they are fabricated partially in the sign company's shop and partially at the job site, are considered as improvements to real property, provided that they are affixed by the sign company to the real estate in a permanent manner. The sign company in this situation is operating as a contractor and not as a retailer and is required to pay sales or use tax as a consumer on the purchase of materials and supplies.

Roadside billboards and bulletins which are constructed on the site where they are to be permanently located and which rest on foundations or have their own supports anchored into the ground in a permanent manner, are considered as improvements to real property. The fact that the panels may be removable for painting or storm protection does not alter the situation.

Lettering on walls, floors, doors, and windows of buildings are improvements to real property. Dealers who do this type of work are the ultimate consumers of materials and supplies so used and should pay tax on the cost thereof.

Other signs -- All other types of signs, whether handpainted, printed or electric, are tangible personal property taxable at their selling price. Installation charges, if separately stated, are exempt.

Except as otherwise stated above, sign companies must charge and collect the sales tax on the full selling price.

Sales of signs to contractors for use on their jobs are taxable whether or not the job is for a tax-exempt organization.

CROSS REFERENCE: SU 91-27 Contractors and Subcontractors -- "Regulation C"

R. GARY CLARK
TAX ADMINISTRATOR
EFFECTIVE: FEBRUARY 1, 2002

THIS REGULATION AMENDS AND SUPERCEDES SU 87-8 PROMULGATED MAY 1, 1987.

How about good news

All the bad economic news and press coming out of the state house tend to cover up and hide some of the good news. Here are some examples of good things going on in Rhode Island.


A Rhode Island firm is one of 3 New England small business firm to EPA sponsored Small Business Innovation Research Grant to Develop Green Technology

Release date: 02/27/2009

"Ion Signature Technology will receive $69,989for the development of an In Situ thermal extraction detection system (TEDS) for rapid, accurate, quantitative analysis of environmental pollutants in the subsurface. The goal of this technology is to provide data to better manage pollution site investigations and cleanup. TEDS would create a collection and analysis system that retrieves soil-bound pollutants as well as soluble and non soluble contaminants from groundwater. When the system is commercialized, it will “sniff” for the presence of pollutants; identify the pollutant, its location and quantity. This process will create conceptual models that depict the location and rate of movement of the pollution. The end result of this process also reduces the regular costs of pollution remediation."



Ion Signature Technology is a privately held company focused on developing and marketing advanced data analysis software and hardware. The company also holds proprietary technology essential to making a handheld Mass Spectrometer sniffer for the detection of explosives, chemical warfare agents, and environmental pollutants.


URI receives support from NIH's National Center for Research Resources, May 9th 2009
URI receives $18 million grant to strengthen biomedical research capacity in Rhode Island


The Rhode Island Foundation is a local source of support for community bootstraps initiatives
Nonprofit Organizations are a major community resource in Rhode Island. The Rhode Island Foundation is supporting the development excellence in the governance and operations of Non-profit organizations here in the state.


I will try to publish A good news entry each month from now on.

Here is the Little Gem that frighten Amazon and others away

The key is the Nexus principle in the U S Constitution which is being litigated in New York state.

Here is Rhode Island's take on the subject.


2 44-18-15. “Retailer” defined. — (a) “Retailer” includes:
(1) Every person engaged in the business of making sales at retail, including sales at auction of tangible personal property owned by the person or others.
(2) Every person making sales of tangible personal property through an independent contractor or other representative, if the retailer enters into an agreement with a resident of this state, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer, provided the cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer, is in excess of five thousand dollars ($5,000) during the preceding four (4) quarterly periods ending on the last day of March, June, September and December. Such retailer shall be presumed to be soliciting business through such independent contractor or other representative, which presumption may be rebutted by proof that the resident with whom the retailer has an agreement did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the United States Constitution during such four (4) quarterly periods.

UPDATE -- COLLATERAL DAMAGES

I had just posted the earlier article when I stopped by The Providence Business News and found this story. OVERSTOCK is following Amazon's actions


Posted July 1, 2009
retail
Overstock follows Amazon, drops R.I.
http://www.pbn.com/stories/43314.htm
By Ted Nesi
PBN Web Editor

OVERSTOCK.COM’S CEO BLAMED STATE LAWMAKERS for its decision to drop affiliates in Rhode Island and other states where “where counterproductive (and likely unconstitutional) laws are being passed.”


Related Stories
Amazon.com cuts R.I. partners over tax (June 29, 2009)

The General Assembly Get's It Wrong -- AGAIN

On Friday morning I awoke to this message From Amazon.com (6 26 2009)


We regret to inform you that the Rhode Island state legislature is preparing to pass an unconstitutional tax collection scheme that, if passed and not vetoed by the governor, would leave Amazon.com little choice but to end its relationships with Rhode Island-based Associates. You are receiving this e-mail because our records indicate that you are an Amazon Associate and resident of Rhode Island.

Please note that this is not an immediate termination notice and you are still a valued participant in the Associates Program. All referral fees earned on qualified traffic will continue to be paid as planned.

But because the new law is drafted to go into effect once enacted, we will have to terminate the participation of all Rhode Island residents in the Amazon Associates program on or before the day on which is it enacted. After the termination day, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com nor will we accept new applications for the Associates program from Rhode Island residents.

Note that other states, including Maryland, Minnesota, and Tennessee, considered nearly identical schemes, but rejected these proposals largely because of the adverse impact on their states residents.

The governor's website is
http://www.governor.ri.gov/ [ http://www.governor.ri.gov/ ],
the Rhode Island legislature's website is
http://www.rilin.state.ri.us/
[ http://affiliate-program.amazon.com/ http://www.rilin.state.ri.us/?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=assoc-center-1&pf_rd_r=&pf_rd_t=501&pf_rd_p=&pf_rd_i=RhodeIsland062609 ],
and additional information may be obtained from the Performance Marketing Alliance at http://www.performancemarketingalliance.com/ [ http://www.performancemarketingalliance.com/ ].

We thank you for being part of the Amazon Associates program, and we will apprise you of next steps.

Sincerely,

Amazon.com

On Monday Morning I found that, I and all other affiliates in Rhode Island had been dropped by Amazon and our accounts closed to us.

This action by Amazon has created a little excitement here in Rhode Island but NOT YET enough.

I don't think the RI legislature nor the Governor's office are aware of the potential damage that may have already been done. It is not the sale tax per se that is the issue -- there are enough problems with that without this. It is the additional unemployment in the state with the third highest in the nation.

The real issue is that many individual, sole proprietors who have started legitimate businesses using the Amazon and/or other affiliate programs as a key element of their business plan, are now without a business. Business models such as Drop and ship, "clickthrough", renting ad space on websites, etc. are the way the web based business is developing.

These are not the traditional sales tax revenue streams. They don't fit the "brick and mortar" local sales tax model. Yet the issue which faces these private contractors and, businesses is that the legislature deems them to be an extension of Amazon.com Corporation. As result the legislature has deemed it within its power to impose upon a foreign (non-RI) corporation not doing business in Rhode Island a tariff, that is a customs duty, on all products shipped into the state of RI by that company.

In order to protect itself and any legal claim it may or may not have to the unconstitutionality of one state imposing a customs duty on the products shipped from another, Amazon has canceled all its ties with anyone who was enrolled in their affiliate program. This includes sole proprietors, and llc's who have enrolled and with the many nonprofit organizations who depend on innovative fund raising opportunities such as "clickthrough".

To the degree that the sole proprietors depend on the affiliate relationships for their income, I wonder how many more unemployed non-taxpaying individuals have been created by this poorly considered attempt by the legislature to avoid another year of poor fiscal legislation and third world economic development planning.

While the world moves toward freer and freer trade between countries for a 21st century global economy, RI moves backwards into the 19th century isolationist mode.

The argument is offered that this sale tax will level the playing field between Big Amazon and little mom and pop stores in RI. That is an illusion someone smoking a weed that the legislature wanted to legalize in a limited way contrary to federal law might come up with.

First, mom and pop stores serve a very useful function when they serve a specific need in the community. But second, when they are inefficient, poorly managed and unable to adapt to changing times by modifying or adapting they business model to the times then they will die with or without the help of the legislature. A sales tax on Walmart does not make mom and pop competitive with Walmart. The big box stores have done more to un-level the playing field than any invasion of mail order purchases.

There is nothing to stop a mom and pop store from setting up a website to expand their potential customer base beyond their block, town, city or for that matter the state. Further, if they have any sense at all, they will offer to rent, or even give away, space on their website to promote other peoples sites, just as they now post notices for others in their brick and mortar store windows.

Why Amazon you might ask? Because this is where the battle has broken out. It might next be Google, Ebay, Overstock or any of the thousands of websites that have joined an affiliate program for a major internet business. As you can see I am still enrolled in Adwords on this BLOG, but for long?? What's next?


When I planned to become an Amazon Affiliate it was with the idea that if I was going to recommend a book, movie, CD, or other product to one of my coaching or consulting client it would be easier for them to click on the Amazon widget and make the order from my site. In return for the referral Amazon would be paying me for space I gave it on my website to advertise. Well that never happened because I am still working on the site http://www.januslifecoaching.com and the Amazon widgets had not been installed.

Certainly I can still refer clients to Amazon and Amazon will get paid but I won't and I won't be paying the RI income tax on my profit.

Well maybe I can now apply for unemployment, or for a grant under the New Trade and Globalization Adjustment Assistance Act of 2009.