With local governments whining and complaining about how they're "losing" all sorts of money thanks to their inability to tax VoIP and other new internet-related activity, you know that trouble is brewing. Over in New Jersey, for example, it looks like they're moving forward on a plan to tax plenty of new things -- including internet downloads. If passed, that $0.99 song from iTunes will start costing $1.05 instead, sending it over the "magical" $1 line. It certainly has all the makings of an urban legend, but apparently it's for real this time. New Jersey isn't even being very original. The state of Wisconsin has been considering the same thing. Of course, what's missing from these discussions is any explanation for why the state of New Jersey should be able to collect taxes on something that has absolutely nothing to do with the state.
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