Taxing iTunes?

from the yeah-that-will-encourage-music-purchases dept

It’s tax time again. As always, that means stories about what’s taxable and what isn’t — with this year being the year to look at the taxability of online music downloads. It appears that with the success and attention Apple’s iTunes has gotten recently, plenty of states are pushing forward with efforts to tax each song you buy. The normal rationale for sales tax is that the sales use up some sort of local resources, in terms of roads or infrastructure. That makes less sense when the product is entirely digital, but we’ve long since gone past any rationale for taxes, other than “the government wants more money.” So far, it doesn’t seem like this is actually impacting most online music shoppers, but the increase in price from taxes certainly could act as at least some incentive for people to go back to unauthorized file sharing (rather than paying the higher price for songs) — which you would think the government wouldn’t want.


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Comments on “Taxing iTunes?”

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27 Comments
Anonymous cowherd says:

nothing surprises me anymore...

I was just informed that I’d have to pay ‘Use Tax’ for purchases I made outside the state I live in… Even though the state had absolutely nothing to do with the transaction… the rationale is that online purchasing from other states, or even countries, damages the local business and use tax redistributes the wealth amongst the local businesses by contributing to the state coffers… and all this because I was an honest law abiding citizen and registered for a Sales Tax account so that I could pay the US government a sales tax for every sale I make…

So, just wait, pretty soon, when the government realizes that it can’t regulate or control online purchases or file sharing, they’ll just levy a tax on every network packet you send AND receive… so, you’ll start paying for all that spam you welcome into your inbox

There’s no limit to human greed

RenderingSanity says:

Anyone remember that dude that claimed to be from the future and posted about it in a forum online? John something… He was either from the future or a very good guesstimator of what is to come. He described a future post-craplikethis where at least the US had realized that centralized anything sucks and had gone to a simplified but high tech colony like society….

The more time goes on the more that sounds appealing to me. Not having to be concerned with big government crap because the big government just isn’t there anymore…

anarchistic government hating bastard says:

greedy corrupt government

I completly agree! Off to the freaking harbor. The government is so busy spending money they don’t have to make politicians wealthy that it seems our government is no longer capable of operating as it was designed. I feel that the only way to obtain the form of government that the US was intented to be is start over. What is the deficit now?? Three trillion?? Who is profiting? Now think of this, if I was a couple of trillion dollars in debt… I sure as hell wouldn’t be spending more money, I would be in prison, or someone would assasinate me. Why is it legal for them?? The government “officials” are exactly like freaking toddlers in a candy shop.. It is time they got their spanking..

txjump says:

never intended

you are right. our founding fathers never intended for us to end up this way.

they didnt want career politicians, they wanted real people in office. are there many people in office who arent politicians now?

they were for states rights with a few exceptions. strongarming funding and superseding state laws has become more prominent.

they wanted to avoid mob rule where injustice was carried out on people with a small voice. lobbist groups and campaign funding have ruined this concept.

pdog69tx says:

That freakin' figures

As if the gov’t doesn’t have enough to worry about with everything and all, they are worried that downloaded songs may need to be taxed? What a crock of sh%*. As far as I can remember the gov’t is always looking to get something for nothing, and this is another example. I agree with the article that if this crap is passed anywhere, all it will do is drive people back to the “illegal” downloading and cause to have a NAPSTER event all over again. Leave the MP3 world alone. The money we pay per song (.99 for I-Tunes) is more than enough to pay who needs to be paid, and I don’t remember the gov’t being in the recording studio when the artist cut the song.

Anonymous Coward says:

To all those out there who think that it is time for this, and countless other taxes, to go, there is a plan in place that’s gaining power. It has several high-powered politicians on board, and is gaining new members every day. Fair Tax aims, among other things, to eliminate the IRS and income tax completely, and move to scaled-back sales taxes… Vist: http://fairtaxgroups.com/index.php?PHPSESSID=f48f8a7a8cdc4e29d1d569073b7509ef&topic=454.0

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