iTunes Tax Coming for Californians?
The blissfully tax-free nature online music shopping may be coming to an end. Buying virtual goods such as MP3s has been pretty much tax-free ever since the iTunes store launched in 2002, even though various money-hungry politicians around the country have been itching to levy Internet specific taxes for just as long. The latest is Democratic Assemblyman Charles Calderon from City of Industry, California, who wants to start applying a sales tax of 8.25 to 8.75 percent on digital downloads in an effort to remove the state's $8 billion budget deficit.
Calderon wants to update a 75-year-old law that indicates taxes must be applied to "tangible goods." Movies and music for download have so far been exempt from this tax, since users can't really touch or feel them. You can, however, see and hear them when played on a computer, which is good enough for Calderon. By also applying the tax to purchases of online pornography, Caleron believes he can increase state tax revenue by $500 million annually (still leaving $7.5 billion to go).
However, don't fret just yet, West Coast downloaders: Love 'em or leave 'em, the Republicans in California have your back. They are opposing this measure and are expected to block it from passing, meaning your $.99 downloads will stay just that -- at least for now.
From Mercury News
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Reader Comments (Page 1 of 1)
Tracy Calderon @ Apr 9th 2008 1:45PM
Thanks Mr. Calderon for making California look like a dick. I never thought I'd be thanking the republicans for wathing the consumers back. But, here it goes, thanks guys! Now do something to keep the 48 state parks open Old Arnie plans on closing.
Leslie @ Apr 9th 2008 1:45PM
Seriously?? the music companies are having enough trouble as it is trying to keep people from downloading music for free and encouraging them to buy.. adding a tax to music bought online sure won't help.
Michael @ Apr 10th 2008 12:24PM
Typical Democrat.
Spend too much, soak the taxpayers, spend too much, so you can soak the taxpayers some more.
Then when you've torched the economy, blame the Republicans just before the elections and you know the press will back you up.
And the sheeple who voted in you in will buy it, because they're simple-minded, fear-based and hate-based.