RE: [flasher] Macromedia thinks there GOD

[Thomas Voth]

I think this is a lot closer to the truth then MM wanting to dictate your

life to you.  There is such a thing a gift tax (meaning that you technically

still owe taxes on what you won, just like winning a car).  An easy way

around a gift tax is to argue that what you won isn't worth anything, and

since you can't resell it, it's not (unlike a regular version of their

software which you can resell and is worth the current "fair market" price).


I know that the amount of taxes owed on your one set of software may seem

insignificant, but how many MINOR shows do they do a similar giveaway at?  I

can think of at least 3 that I've personally attended and adds up very

quickly.  Now weather or not gift taxes are completely fair is another story

but MM has no control over the government.


-Tom


-----Original Message-----

From: Phillip Kerman [

flash5teleport [dot] com (mailto:flash5teleport [dot] com)

]

Sent: Saturday, January 20, 2001 11:54 AM

To: flasher from chinwag

Subject: [flasher] Macromedia thinks there GOD



Why I feel that I have to defend them... I don't know.  But I think the crux

of the issue is a little misunderstanding.  Ultimately, I suppose it's

possible for MM to give away full-retail (not NFR) copies when they do a

give-away--but they don't.


For MM to give away an NFR costs them ONLY the cost of materials.  Sure, you

could argue there's an opportunity cost (in that the receiver will not go

buy a copy that they might otherwise had).  But if MM gave out a full-retail

copy they'd have consider that the same way as a real sale.  That is--pay

taxes on it as if they really sold it.


Maybe you donate some of your time at a local high school.  If at the end of

the year you've donated 50 hours and you normally charge $100/hour do you

want to pay taxes on this as if you made $5000 (that you really didn't)?  Of

course not.


I think my analogy is not entirely accurate, but the bottom line is that

when you get something "free" you're kind of stuck with what ever it is that

you've been given.  I'm sure it's not that MM REALLY cares what you do with

this software--rather, they can't give it out as "Not for resale" if you end

up selling it.  Who would pay sales tax on it?  They sure don't--and as such

they can't give away something that gets resold without being responsible

for the taxes.


I think the suggestion to sell your original copy was a great one.


Phillip


P.S.  They're = they are




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