yup. precisely the topic of an hour long discussion I had with a friend yesterday.
here are top 2 problems I see with this tax in domaining:
1- All of the TLDs are owned by a handful of companies, and it's not in their interest to create a more competitive model. They don't really care who owns a domain, as long as someone's paying for it. In fact, they like squatters and encourage it. You should see how many domains are auto-registered by bots. I'll write about that more in the future, but for every TLD that claims "millions" of registered domains, a large portion of those are just unused junk. The registrar though is getting paid.
2- Land tax is not in the business interest of a business. As a domain becomes one of the key pillars of a business, I wouldn't want anyone to have the ability to take it from me, which is how it works (from my understanding) under the value tax. However expensive, it is cheaper to pay large sum up-front, and know you have the domain forever.
Land tax is one of those things that are good in theory, but in practice will be very hard to implement.
here are top 2 problems I see with this tax in domaining:
1- All of the TLDs are owned by a handful of companies, and it's not in their interest to create a more competitive model. They don't really care who owns a domain, as long as someone's paying for it. In fact, they like squatters and encourage it. You should see how many domains are auto-registered by bots. I'll write about that more in the future, but for every TLD that claims "millions" of registered domains, a large portion of those are just unused junk. The registrar though is getting paid.
2- Land tax is not in the business interest of a business. As a domain becomes one of the key pillars of a business, I wouldn't want anyone to have the ability to take it from me, which is how it works (from my understanding) under the value tax. However expensive, it is cheaper to pay large sum up-front, and know you have the domain forever.
Land tax is one of those things that are good in theory, but in practice will be very hard to implement.