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.