Politicians push for new sales taxes on Apple’s iTunes Store

“A growing number of state politicians are proposing new laws to levy taxes on digital downloads, including music, video, and books, as a way to remedy budget pains,” Anne Broache reports for CNET. “Call it the iTunes tax.”

“Two years ago, a CNET News.com special report found that 15 states and the District of Columbia said that their laws and regulations meant that digital downloads should be taxed. A few months later, New Jersey joined that list,” Broache reports.

“Since then, more states have become tax-inclined. In 2008 alone, Indiana, Utah, and South Dakota have enacted laws reiterating their commitments to collect taxes on digital downloads, while Nebraska recently voted to send its governor a bill (PDF) that would tax downloads of books, movies, and music starting October 1,” Broache reports. “Others, including Wisconsin and Massachusetts, have formed groups to ‘study’ new iTunes taxes.”

Broache reports, “Opponents–including a wide array of Internet companies, retailers, local chambers of commerce, and the Motion Picture Association of America–argue the new fees will impair digital media sales and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states.”

Full article here.

Nothing’s certain, but death and taxes… and death taxes.

88 Comments

  1. I don’t know other service like amazon, wal-mart, etc. do they charge taxes as well? I don’t see that yet. so is it necessary to add tax for electronic transaction just like other item? I don’t know. I hope not. is it some kind of greedy of government? just leave me alone.

  2. …and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states

    Imagine, iTunes available across the world, except in Michigan and Nevada because of digital download taxes. Still no sales tax in Delaware! ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  3. I hate those socialists (democrats) trying to tax us in every possible way.

    In any case new taxes will never solve any of their problems.

    “If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.” – Milton Friedman

    “There is only one way to kill capitalism – by taxes, taxes and more taxes” – Karl Marx

  4. The following is true. It’s where these taxes are going.

    Our Senators and Congresswomen do not pay into Social Security and, of course, they do not collect from it. You see, Social Security benefits were not suitable for persons of their rare elevation in society. They felt they should have a social plan for themselves. So, many years ago they voted in their own benefit plan. In more recent years, no congressperson has felt the need to change it. After all, it is a great plan. For all practical purposes their plan works like this:
    when they retire, they continue to draw the same pay until they die. Except it may increase from time to time for cost of living adjustments. For example, former Senator Byrd and Congressman White and their wives may expect to draw $7,800,000.00 (that’s Seven Million. Eight-Hundred Thousand Dollars). with their wives drawing $275,000.00 during the last years of their lives. This is calculated on an average life span for each of those two dignitaries. Younger dignitaries who retire at an early age, will receive much more during the rest of their lives. Their cost for this excellent plan is $0.00, ZERO,NADA….ZILCH…, This little perk they voted for themselves is free to them. You and I pick up the tab for this plan. The funds for this fine retirement plan come directly from the General Funds; “Our Tax Dollars At Work”

  5. I’ve been paying taxes on iTunes purchases (as well as all Apple.com purchases) in AZ for years. I thought it was because they had a physical presence in the state. Isn’t that “normal”? I know this is a big deal in CA, so do they not pay the 7 or 8 cents on a $.99 download?

  6. I paid 99c for a tune in Ca. The 99c charge was on my credit card with NO taxes. I was testing the process. I have enough CDs to last two or three lifetimes loaded on iTunes without buying any more.

  7. Your libs are the tax and spendaholics. Pure communism is where they want to take things. The more people that are dependent on the government the better for them. They don’t want people to be successful. They don’t want to stop terrorism. They just care about their own power. Time will show the real evil people are the libs. It’s a lot of fun watching Barrack Osama and Hillary make idiots out of each other and expose their true natures. Nice crowd Barrack hangs out with. That guy would be the absolute worst thing that could happen to the US. No wonder the rest of the world loves him.

  8. Whether you are a Democrat, Republican or Independent…. these are the facts …..

    Taxes under Clinton 1999 Taxes under Bush 2008

    Single making 30K – tax $8,400 Single making 30K – tax $4,500

    Single making 50K – tax $14,000 Single making 50K – tax $12,500

    Single making 75K – tax $23, 250&nb;sp; Single making 75K – tax $18,750

    Married making 60K – tax $16,800 Married making 60K- tax $9,000

    Married making 75K – tax $21,000 Married making 75K – tax $18,750

    Married making 125K – tax $38,750 Married making 125K – tax $31,250

    If you want to know just how effective the mainstream media is, it is amazing how many people that fall into the categories above think Bush is screwing them and Bill Clinton was the greatest President ever. If ANY democrat is elected, ALL of them say they will repeal the Bush tax cuts and a good portion of the people that fall into the categories above can’t wait for it to happen. This is like the movie The Sting with Paul Newman; you scam somebody out of some money and they don’t even know what happened.

    Your Soci al Security

    Just in case some of you young whippersnappers (& some older ones) didn’t know this. It’s easy to check out, if you don’t believe it. Be sure and show it to your kids. They need a little history lesson on what’s what and it doesn’t matter whether you are Democrat of Republican. Facts are Facts!!!

    Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

    1.) That participation in the Program would be Completely voluntary,

    2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program,

    3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year,

    4.) That the money the participants put into the independent “Trust Fund” rather than into the general operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Gov ernment program, and,

    5.) That the annuity payments to the retirees would never be taxed as income.

    Since many of us have paid into FICA for years and are now receiving a Social Security check every month — and then finding that we are getting taxed on 85% of the money we paid to the Federal government to “put away” — you may be interested in the following:

    ————————————————————-

    Q: Which Political Party took Social Security from the independent “Trust Fund” and put it into the general fund so that Congress could spend it?

    A: It was Lyndon Johnson and the democratically-controlled House and Senate.

    ——————————————————————–

    Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?

    A: The Democratic Party.

    ———————————————————————- –

    Q: Which Political Party started taxing Social Security annuities?

    A: The Democratic Party, with Al Gore casting the “tie-breaking” deciding vote as President of the Senate, while he was Vice President of the U S.

    ——————————————————————-

    Q: Which Political Party decided to start giving annuity payments to immigrants?

    AND MY FAVORITE:

    A: That’s right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!

    ———————————————————————-

    Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away!

    And the worst part about it is uninformed citizens believe it!

    If enough pe ople receive this, maybe a seed of awareness will be planted and maybe changes will evolve. Maybe not; some Democrats are awfully sure of what isn’t so.

    But it’s worth a try. How many people can YOU send this to?

    Actions speak louder than bumper stickers.

    AND CONGRESS GIVES THEMSELVES 100% RETIREMENT FOR ONLY SERVING ONE TERM!!!

    A government big enough to give you everything you want, is strong enough to take everything you have. – Thomas Jefferson

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