Export Tax vs ITAR as a compromise ...

Marshall Clow mclow at owl.csusm.edu
Fri Aug 8 00:38:50 PDT 1997

>How about this as a political compromise ...
>1.  Allow any export of crypto.
>2.  Tax crypto exports heavily, say 25% or something
>    like that, unless key recovery (or some other
>    GAK-ish feature) is part of the product.  For
>    instance, structuring the taxes so that ...
>        GAK-only     products get taxed   0%
>        GAK-optional products get taxed  20%
>        non-GAK      products get taxed  25%
If this were in force, and I were someone like, say, PGP,
I would export a single copy of my program to a confederate
overseas who would then duplicate it and sell it abroad,
sending royalty payments back to me.

25% of $50 is um... $12.50.

Lots of revenue there.

-- Marshall

Marshall Clow     Aladdin Systems   <mailto:mclow at mailhost2.csusm.edu>

"In Washington DC, officials from the White House, federal agencies and
Congress say regulations may be necessary to promote a free-market
system." --  CommunicationsWeek International April 21, 1997

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