An iPod Tax gets Approved

[johnnymk]

I guess some legislators have some sense after all.

http://government.zdnet.com/?p=3089

If the powerful trade group the Recording Industry Association of America has trouble tracking down thousands of people who illegally download audio files from the Internet, no one told the Iowa state legislature.

The Quad City Times reports that the Iowa Senate recently approved an "iPod tax," which would collect a tax on all digital downloads based on the honor system. The honor system means that consumers would pay the state immediatley after loading their latest iTunes purchase onto their iPods. Do they really think that enough people will voluntarily cough up even more money just to stay on the right side of the law?

Iowa legislators think that songs, cell phone ring tones, software, audio books and any other electronic downloads, should be taxed just like brick and mortar stores, and the insueing "iPod tax" is the result of all that brain power under one roof.

All twenty Republicans voted against it, including Sen. Jeff Angelo, R-Creston, who said the bill is proof that government will tax anything.

"This tax is impractical. It's unenforceable. And it's highly unpopular," Angelo said.

[Grafalgar]

haha - for once I find myself cheering for a politician!

That's a great quote "The bill is proof that government will tax anything."

True though, isn't it? Once something becomes popular enough to catch a politician's attention, and there's somehow money involved, a new tax is highly likely to be created for it (in addition to any existing taxes already applied to it).

It makes me laugh and cry at the same time.

[cheapie]

might want to change your title. the tax was approved but the repubs didn't vote for it.

[InfiniteNothing]

It's an honor system tax?

[cheapie]

we have that on our state taxes. all online or catalog purchases shipped into michigan need to be claimed.

[VTGreg]

we have that on our state taxes. all online or catalog purchases shipped into michigan need to be claimed.

As does NC. It is another honor tax.

[Butch]

:shrug: It's a stupid idea to tax digital downloads specifically. Of course, the issue of taxing online commerce is still open and valid. NY has a law requiring voluntary reporting of online purchases.

Taxing online purchases - download or otherwise - will happen eventually. In principle, I don't think it's necessarily a bad thing given existing laws for B&M purchases, but I think it sucks it will happen . . . I'm happy to order from Amazon, etc. and save myself some money.

Either way, it's better than out here in Germany . . . 19% VAT tax . . . OUCH! And that's ON TOP of much higher income tax rates!

[Prngr44]

Either way, it's better than out here in Germany . . . 19% VAT tax . . . OUCH! And that's ON TOP of much higher income tax rates!

VAT tax?

"Ve alvays tax" you?

:)

[johnnymk]

might want to change your title. the tax was approved but the repubs didn't vote for it.


OOPS..you're right.

[Maarchk]

VAT tax?

"Ve alvays tax" you?

:)

Value Added Tax.

I buy 5 cents of screws, and 10 cents of wood and make you a toy. i sell the toy for 1.00. I tax you a % of the change from materials (.15) to selling price (1.00) So it would be the tax rate times .85 i Think.. dont quote me on this, cause i'm not 100% sure. But it sounds good.

Why should people not tax online downloads? You bought a product, you pay a tax. Just because you didn't walk into a store doesn't really change anything. in cali we are supposed to pay tax on online products that are not taxed for us.

Why do you think the government killed online Card playing, because they couldn't tax it (run from other countries). And yet betting on sports and horses still goes online just fine... cause those people get taxed...

i hate US.