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Monday, April 17, 2006

Democrats Want to Tax Your Music Downloads

Isn't the tax upon a tax getting overdone?

Democratic politicians in state capitols are more likely than Republicans to permit what critics are calling the "iTunes tax"--taxes on digital purchases of songs and movies.

A CNET News.com analysis of the states that tax digital downloads, such as those from the iTunes Music Store, shows that nine protax states have legislatures controlled by Democrats. By contrast, five of the protax states have Republican-controlled legislatures.

A News.com special report Thursday says most states have overlooked taxing digital downloads--iTunes purchases, e-books and movies--so far, but as online media purchases are booming, politicians and tax collectors are eyeing the area as an untapped source of new revenue.

t's not always clear who authorized iTunes taxes. In Washington state, for instance, the Democratic-controlled executive branch reinterpreted the definition of "computer software" in the tax code to cover music downloads. But taxpayer advocates say that the legislature ultimately sets tax policy and is responsible for overriding any bureaucratic legerdemain.

NTU's Sepp also argues that digital downloads are already being taxed. He says that anyone connecting to the Internet through dial-up, DSL or a cable modem is already paying telecommunications taxes; anyone with an iPod paid sales taxes on it; companies offering downloads are paying property taxes; their stockholders are paying dividend or capital gain taxes; their employees are paying income taxes.

"Obviously we need to start considering limits on this sort of taxation," Sepp said.


Let's get this straight. When you earn your money you pay tax on it. When you spend your money they tax it.

Is this why the government has worked so hard to stop free downloads? It's pretty hard to tax a free exchange.

Thanks to Epicurus

Comments

Rob
Rob
19421 comments
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I think the government, rightly, fought hard to stop free downloads because many of them were an eggregious violation of copyright laws.

As for this tax though, it seems totally ridiculous that our politicians would be devising new ways to tax Americans without an actual reason for the taxation.  Their thinking goes like this: "It exists, it hasn’t been taxed yet, so now we will tax it."

Does the government need the tax revenue?  No.  Tax revenues are still climbing thanks to Bush’s tax cuts.  And Americans certainly don’t need to be paying another tax.  What Congress needs to focus on is cutting the amount of spending they do. 


When the people fear their government, there is tyranny; when the government fears the people, there is liberty.

-- Thomas Jefferson

Rob’s recently listened-to songs:

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Rob on April 17, 2006 at 06:29 am
Avatar for Brandon

"Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."

- Ronald Reagan 

Brandon on April 17, 2006 at 07:17 am
Avatar for The.Whistler

Rob this seems to be states that are taxing the downloads, at this point. 

It’s the same story.  Governments should look at cutting waste before they raise taxes.  

I also wonder how it is that they are able to tax downloads when they are unable to tax internet purchases.  (?) 

 

 

 

The.Whistler on April 17, 2006 at 07:21 am
Avatar for Epicurus

Democrats Want To Tax Your Music Downloads

And so do Republicans.

Rob,

I think the government, rightly, fought hard to stop free downloads because many of them were an eggregious violation of copyright laws.

You mean the RIAA and like organizations did.  For the most part our copyright laws rely on the copyright holder to police their copyright, to take cases to court, etc.  The great thing about iTunes is that it bypasses the RIAA and its failed business model; it has also been a boon to artists from an accounting standpoint. 

http://www.foxnews.com/story/0,2933,46557,00.html

http://select.nytimes.com/gst/abstract.html?res=FB0C10FD3A5A0C778EDDAB0894DA404482

Anyway, Congress isn’t involved in these efforts, state governments are. 

Epicurus on April 17, 2006 at 10:18 am
Avatar for The.Whistler

OK, but mostly Democrats.  Unfortunately the Republicans as they’ve grown into majority status have fallen into the same thinking as Democrats.  They are working for the benefit of the bureaucracy rather than the voters.

It’s much the same thinking as is going on in schools all over this country.  Schools are being run for the benefit of the teachers, not the students. 

The.Whistler on April 17, 2006 at 10:35 am
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