March 10, 2005 12:21 PM PST
'iPod tax' planned for music downloads?
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At issue is whether consumers need to pay tax on digital downloads such as movies or songs purchased from Apple Computer's iTunes store. In a few states, those who don't voluntarily pay a few extra cents of tax on their 99-cent downloads are already technically breaking the law.
Wisconsin Gov. Jim Doyle now wants his state to start collecting taxes on digital music, videos and software. Key Republicans in the GOP-dominated legislature say they will block the proposal, but administration officials say they're just trying to make things fair.
What's new:
Wisconsin and other states are grappling with how, or if, to tax digital downloads such as music and movies purchased online.
Bottom line:
Some economists say taxes on digital goods could hamper the growth of a vibrant new marketplace; others say that having taxes only on offline versions of the same goods distorts the operation of free markets.
"It's an issue of tax equity," said Jessica Iverson, a spokeswoman for the Wisconsin Department of Revenue. "If you go into a Main Street business and purchase a CD, you are paying tax."
That issue of "leveling the playing field" between Internet and offline businesses has dogged e-commerce from its inception, creating a complicated maze of rules that is now extending to the world of digital downloads.
Economists are split, even across right-left divides, as to whether adding these kinds of taxes is a good idea. Some say that taxes on digital goods will hamper the growth of a potentially vibrant new marketplace, while others say that having taxes only on offline versions of the same goods distorts the operation of free markets.
Many states already impose what is often called a "use tax," which is essentially a sales tax applied to goods purchased from out of state businesses such as through a catalog, a 1-800 number, or online.
For the most part, states can't force the vendors to collect that tax unless they have a physical presence in the state, however. That means that consumers themselves are often technically required to tally up how much they've spent during the year and pay the tax voluntarily.
Predictably, the compliance rate for this is extremely low, although some states have pursued high-profile efforts to collect the tax by contacting online vendors--most notably when Michigan subpoenaed online cigarette sellers for the names of state residents earlier this year. Wisconsin officials estimate that just about 1 percent of people actually pay this kind of "voluntary" tax at the end of the year in that state.
In the case of digital downloads, the issue has been almost wholly invisible.
In at least a few states, however, consumers who don't pay taxes
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I am not opposed to paying taxes, but I wan't to know exactly when and where my taxes go. I want an Itemized list of everything my money goes for. I also think that any pay incresses that state and federal officials get should be voted on by the people not by other reps. To clear it up when you run and win an office you should be able to go to the bathroom without approval from the people.
Yeah I know that's stupid. I really don't want to know when and why they are going to the bathroom.
taxed to death.
The Beatles
Taxman
"Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman
If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.
Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman
Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me."
collected because they impact an infrastructure that has a cost
to maintain.
Now before you think you can build an argument about on-line
sales affecting infrastructure, we are talking about labor and
materials. Any other argument would be based on intangibles
and would be complete and utter ********.
Sales taxes are collected on goods sold in a state because the
transportation system is afffected and the state must maintain
the cost of roads. Merchants pay taxes because they have a
similar affect on their surroundings. This is all reasonable. I use
your streets, police, etc. The governing body has to have a
means to pay for it.
Taxing music sales, simply because it is a successful enterprise,
is pure, un-mitigated greed. The states are not affected. They
just want the money. These proposal earn the utter loathing of
the population they profess to serve.
In nearly every situation, tax money is wasted.
Perhaps the government needs to slim down and spend wisely before asking us for more money.
Clinton may have liked getting blow jobs in the oval office but at least he didn't run their country in to the toilet. Bush and all of his hired idiots are doing a good job with the toilet handle and plunger. Yes, idiot American's voted the moron back in to office.
Robert
BTW, idiot American's voted the prior moron back in to office too, so what else is new?
Apart from making the level of tax identical from state to state it also allows for the advertised or "sticker" price to be what is paid at the checkout. None of this "$5.98 plus tax, that will be $25.30 Thanks"
The Australian system may not be perfect but it's seems far simpler than each state having to chance their funds all over the country.
This is all getting way out of control. Crackdown on blogs, tax digital downloads, outlaw P2P, put black boxes in cars, regulate technology innovation, regulate paid cable and satellite programs the same as boradcast stations, control content on DVD's, and this was all in the past week!
Where does it stop?
People complain about Bush being back in office. Well, this year we got screwed either way. Kerry doesn't know what it's like to have to work for a living. He would have been just as bad as Bush just in a different way. A good question is how long does America have before it folds in on itself because Capitilism and Polititians cause the economy to become so unstable that it crashes like Russia. We are the majority. If you don't like the way YOUR government is run then change it. Make your voice loud. Take them to court, take it to the steps, and take it to the poles.
Our fore fathers had to fight for America and we Americans are going to have to fight to keep America. I don't advicate violence I advicate having a voice and using it.