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 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

  2. 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”

  3. 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?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.