Analysis: video game tax supporters barked up wrong tree

These days it can be hard to get kids out of the house. Between thehundreds of channels of cable television, the piles of video games, andthe Internet, the life children lead inside their own heads can be asrewarding and safe as venturing out into the great wide world. This is,of course, assuming there is a wide world out there for kids; in manyurban areas there simply aren't many safe places to play. The SierraClub in New Mexico thought it had the answer to this conundrum:legislation that would place a 1 percent tax on the sale of televisionsand video games, and then use that money to fund outdoors activities. The law even had a cute name, "No Child Left Inside."
Unsurprisingly, the law died a quick death in the New Mexico state legislature. Courts have shown again and again that games are considered protected speech, and trying to figure out why children are staying inside is a complex issue.
To the groups behind the proposal, singling out television and videogames as the culprit must have seemed like an easy sell. Of course,this law doesn't pass even the simplest of logic tests; it's nearlyimpossible to prove that games are damaging children, or that they arethe reason for the lack of outside activities. The one percent taxisn't much different than the "sin taxes" levied against alcohol andcigarettes, without anything close to the evidence of harm to thepurchaser. It's not surprising that the bill was killed, just that thegroups involved thought it had a chance.
Industry reflections
"We're in the front of people's minds," Dan Hewitt, the seniordirector of communications for the Entertainment Software Association,told Ars Technica. Video games are a popular subject, and since issuesrelated to gaming frequently pop up in the press, the industry isbecoming a common target of sloppy thinking. "It's a generationalissue," he goes on, "People think that video games can be taxeddifferently than other forms of protected material, and that just isn'tthe case."
It's also possible that the money involved in the video gamingindustry is also making it a target. "If you look at the numbers, theindustry grew 43 percent last year... what you're seeing is that videogames are expanding at a phenomenal rate when the US economy is limpingalong," Hewitt told Ars. "They do see it as a revenue source." He thenadded an adamant note, "It's unconstitutional to single out videogames."
Ars Technica also spoke to Rhianna Pratchett, writer of games such as Overlord and Heavenly Sword,about the issue. Pratchett usually provides unique insight into theworld of gaming, and her words were incisive. "Hang on, I thought wewere meant to be encouraging the youth of today to get off thestreets?" she asked Ars. "Now it appears they actually want to penalizethem for the crime of being young and indoors."
Pratchett also points out that his could be case of groups reactingto an industry they don't understand. "Really, it smacks of a tax onfear and ignorance. I am sure they are well aware that many parents andthe media do not understand what children get out of video games andhow engaging they can be as tools of education, social interaction,exercise and, just as importantly, fun! They might as well suggesttaxing... board games or even books."
A growing economic force
What makes criticizing such legislation tricky is that its goal islaudable: getting children outside and more connected to their physicalenvironment. That is something that most people can get behind and,while it's easy to criticize the people behind it, their hearts werelikely in the right place. The problem is that hitting a single sectorof the media with economic disincentives is destructive and has thepotential to marginalize what has become a giant cultural and economicforce in the United States.
The ESA's Dan Hewitt points out that, economically, it's better toreward the gaming industry in your area. Gaming is becoming adecentralized business and, when gaming companies land in your area, itcreates jobs and opportunity. "The real damaging part is that iflegislators want to help their economy,they shouldn't single out one form of media, they should try to growand expand local development and publishing... taxes are one way tohurtthat." The US entertainment software industry employs 24,000 peopleacross 31 states, according to the ESA's research, and singling gamingout for taxation in your state is one way to make sure the industrywon't flourish there.
It's possible that gaming made a tempting target due to its badreputation, but the statistics suggest it's probably no worse than anyother form of media. The number of Mature-rated games are actually indecline when you look at the number of games being released; the majority of titles are actually rated Everyone to Teen, and it is much easier for children to see R-rated movies than buy M-rated games.
The Sierra Club and the other groups behind the failed law in NewMexico want to protect children and encourage their physicaldevelopment—worthy goals. Gaming is a poor target for their efforts.Gaming adds a significant chunk to the US economy and the majority of American consumers are happy with the role gaming plays in their families.
Keeping children active and healthy is of the utmost importance, butgaming is not the problem, and taxing the industry isn't the solution.In the future, maybe well-wishers will learn to embrace gaming and usethe art form creatively and to its full potential, instead of fightingit.
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