MacDailyNews - Where Mac news comes first

 MacDailyNews Poll

Deal of the Day

5 Day Most Commented

Opinion Archive

Current Headlines

Latest Joy of Tech

  • Latest Joy of Tech!

MacNN

AppleInsider

Macworld UK

TUAW

MacRumors

Yahoo! Finance AAPL

iTunes Top 10 Albums

Mac OS X Downloads

Thu, Mar 18, 2010 - 01:40 AM EDT  —  AAPL: 224.12 (-0.33, -0.15%)  |  NASDAQ: 2389.09 (+11.08, +0.47%)

Politicians push for new sales taxes on Apple’s iTunes Store
Tuesday, April 15, 2008 - 05:02 PM EDT

"A growing number of state politicians are proposing new laws to levy taxes on digital downloads, including music, video, and books, as a way to remedy budget pains," Anne Broache reports for CNET. "Call it the iTunes tax."

"Two years ago, a CNET News.com special report found that 15 states and the District of Columbia said that their laws and regulations meant that digital downloads should be taxed. A few months later, New Jersey joined that list," Broache reports.

"Since then, more states have become tax-inclined. In 2008 alone, Indiana, Utah, and South Dakota have enacted laws reiterating their commitments to collect taxes on digital downloads, while Nebraska recently voted to send its governor a bill (PDF) that would tax downloads of books, movies, and music starting October 1," Broache reports. "Others, including Wisconsin and Massachusetts, have formed groups to 'study' new iTunes taxes."

Broache reports, "Opponents--including a wide array of Internet companies, retailers, local chambers of commerce, and the Motion Picture Association of America--argue the new fees will impair digital media sales and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states."

Full article here.

MacDailyNews Take: Nothing's certain, but death and taxes... and death taxes.


Bookmark and Share

Always -- Free ground shipping with orders over $50 at the Apple Store.

Reader Feedback: = registered.
Unregistered users: Feedback from multiple usernames are subject to deletion. Off-topic and posts from suspected astroturfers will be removed.

Reader feedback page 1 of 2 pages:  1 2 >
Apr 15, 08 - 05:07 pm Comment from: edward

I don't know other service like amazon, wal-mart, etc. do they charge taxes as well? I don't see that yet. so is it necessary to add tax for electronic transaction just like other item? I don't know. I hope not. is it some kind of greedy of government? just leave me alone.

Apr 15, 08 - 05:07 pm Comment from: Ludor

Cue pirating frenzy.

Apr 15, 08 - 05:12 pm Comment from: HMCIV

...and, at least in some cases, reduce the incentive of high-tech companies to do business in high-tax states

Imagine, iTunes available across the world, except in Michigan and Nevada because of digital download taxes. Still no sales tax in Delaware! grin

Apr 15, 08 - 05:31 pm Comment from: Jay-Z

@ Ludor:

Precisely

Apr 15, 08 - 05:32 pm Comment from: Original Shiva

Good call Ludor.

Apr 15, 08 - 05:35 pm Comment from: ChrissyOne

Personally, I could do with one or two less wars.

Apr 15, 08 - 05:48 pm Comment from: Clinton & Bush Fatigue is Real

Tax & Spend......Tax & Spend.... !!!

Apr 15, 08 - 05:50 pm Comment from: Already gouged

I don't know about the rest of you, but in Texas we already pay sales tax on iTune downloads.

Apr 15, 08 - 05:50 pm Comment from: SOCIALISTS!

I hate those socialists (democrats) trying to tax us in every possible way.

In any case new taxes will never solve any of their problems.

"If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand." - Milton Friedman

"There is only one way to kill capitalism - by taxes, taxes and more taxes" - Karl Marx

Apr 15, 08 - 05:54 pm Comment from: ron

The following is true. It's where these taxes are going.

Our Senators and Congresswomen do not pay into Social Security and, of course, they do not collect from it. You see, Social Security benefits were not suitable for persons of their rare elevation in society. They felt they should have a social plan for themselves. So, many years ago they voted in their own benefit plan. In more recent years, no congressperson has felt the need to change it. After all, it is a great plan. For all practical purposes their plan works like this:
when they retire, they continue to draw the same pay until they die. Except it may increase from time to time for cost of living adjustments. For example, former Senator Byrd and Congressman White and their wives may expect to draw $7,800,000.00 (that's Seven Million. Eight-Hundred Thousand Dollars). with their wives drawing $275,000.00 during the last years of their lives. This is calculated on an average life span for each of those two dignitaries. Younger dignitaries who retire at an early age, will receive much more during the rest of their lives. Their cost for this excellent plan is $0.00, ZERO,NADA....ZILCH..., This little perk they voted for themselves is free to them. You and I pick up the tab for this plan. The funds for this fine retirement plan come directly from the General Funds; "Our Tax Dollars At Work"

Apr 15, 08 - 05:55 pm Comment from: Keith

We need more taxes.

After all, we have to provide free medical care and education to the 20 million Illegal Aliens in the USA, right ?

Apr 15, 08 - 06:02 pm Comment from: MaLvado

@ "Clinton & Bush Fatigue is Real"

Bush cut taxes...
Democrats are trying to repeal the cuts...

Apr 15, 08 - 06:22 pm Comment from: ChrissyOne

@ MaLvado

Dang, I just got mah rebate check from the 'publikins. YEE HAW!!!

Apr 15, 08 - 06:23 pm Comment from: MikeMilzz

I've been paying taxes on iTunes purchases (as well as all Apple.com purchases) in AZ for years. I thought it was because they had a physical presence in the state. Isn't that "normal"? I know this is a big deal in CA, so do they not pay the 7 or 8 cents on a $.99 download?

Apr 15, 08 - 06:30 pm Comment from: mossman

what, you didn't think the war to liberate Iraq was free, did you?

Apr 15, 08 - 06:31 pm Comment from: ron

I paid 99c for a tune in Ca. The 99c charge was on my credit card with NO taxes. I was testing the process. I have enough CDs to last two or three lifetimes loaded on iTunes without buying any more.

Apr 15, 08 - 06:32 pm Comment from: @ChrissyLib1

Your libs are the tax and spendaholics. Pure communism is where they want to take things. The more people that are dependent on the government the better for them. They don't want people to be successful. They don't want to stop terrorism. They just care about their own power. Time will show the real evil people are the libs. It's a lot of fun watching Barrack Osama and Hillary make idiots out of each other and expose their true natures. Nice crowd Barrack hangs out with. That guy would be the absolute worst thing that could happen to the US. No wonder the rest of the world loves him.

Apr 15, 08 - 06:36 pm Comment from: The Facts

Whether you are a Democrat, Republican or Independent.... these are the facts .....

Taxes under Clinton 1999 Taxes under Bush 2008

Single making 30K - tax $8,400 Single making 30K - tax $4,500

Single making 50K - tax $14,000 Single making 50K - tax $12,500

Single making 75K - tax $23, 250&nb;sp; Single making 75K - tax $18,750

Married making 60K - tax $16,800 Married making 60K- tax $9,000

Married making 75K - tax $21,000 Married making 75K - tax $18,750

Married making 125K - tax $38,750 Married making 125K - tax $31,250


If you want to know just how effective the mainstream media is, it is amazing how many people that fall into the categories above think Bush is screwing them and Bill Clinton was the greatest President ever. If ANY democrat is elected, ALL of them say they will repeal the Bush tax cuts and a good portion of the people that fall into the categories above can't wait for it to happen. This is like the movie The Sting with Paul Newman; you scam somebody out of some money and they don't even know what happened.


Your Soci al Security

Just in case some of you young whippersnappers (& some older ones) didn't know this. It's easy to check out, if you don't believe it. Be sure and show it to your kids. They need a little history lesson on what's what and it doesn't matter whether you are Democrat of Republican. Facts are Facts!!!


Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

1.) That participation in the Program would be Completely voluntary,

2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program,

3.) That the money the participants elected to put into the Program would be deductible from their income for tax purposes each year,

4.) That the money the participants put into the independent "Trust Fund" rather than into the general operating fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Gov ernment program, and,

5.) That the annuity payments to the retirees would never be taxed as income.

Since many of us have paid into FICA for years and are now receiving a Social Security check every month -- and then finding that we are getting taxed on 85% of the money we paid to the Federal government to "put away" -- you may be interested in the following:

-------------------------------------------------------------

Q: Which Political Party took Social Security from the independent "Trust Fund" and put it into the general fund so that Congress could spend it?

A: It was Lyndon Johnson and the democratically-controlled House and Senate.

--------------------------------------------------------------------

Q: Which Political Party eliminated the income tax deduction for Social Security (FICA) withholding?

A: The Democratic Party.

---------------------------------------------------------------------- -

Q: Which Political Party started taxing Social Security annuities?

A: The Democratic Party, with Al Gore casting the "tie-breaking" deciding vote as President of the Senate, while he was Vice President of the U S.

-------------------------------------------------------------------

Q: Which Political Party decided to start giving annuity payments to immigrants?

AND MY FAVORITE:

A: That's right! Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it!

----------------------------------------------------------------------

Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away!

And the worst part about it is uninformed citizens believe it!

If enough pe ople receive this, maybe a seed of awareness will be planted and maybe changes will evolve. Maybe not; some Democrats are awfully sure of what isn't so.

But it's worth a try. How many people can YOU send this to?

Actions speak louder than bumper stickers.

AND CONGRESS GIVES THEMSELVES 100% RETIREMENT FOR ONLY SERVING ONE TERM!!!


A government big enough to give you everything you want, is strong enough to take everything you have. - Thomas Jefferson

Apr 15, 08 - 06:39 pm Comment from: Wendall

The facts speaks the truth!!!!!

Apr 15, 08 - 06:43 pm Comment from: Register or Login

I can't afford the efing gas to go to Walmart to buy the efing CD. Now the efing politicians want to tax the download? What's next, email?

Apr 15, 08 - 06:47 pm Comment from: There's the facts and then there's The Facts

FACT: Social programs have never helped anybody.

FACT: Social security has never helped anybody.

FACT: Nobody has ever learned anything in a public school.

FACT: After-school arts or activities programs have never helped anybody.

FACT: This country is founded on immigrants...but not those recent immigrants. Forget them.

FACT: Being selfish helps everybody. Milton Friedman told me so!

FACT: All the Democrats get together and declare who the Top Democrat is, and then all the Taxes collected get crammed up his/her butt, never to be seen again.

Get your facts straight.

MW: income

Apr 15, 08 - 06:49 pm Comment from: Raymond in DC

Here in DC we've been paying taxes on iTunes downloads from the very beginning. I always found that odd, since Apple had no presence in the District, though I understand a Store is going up in Georgetown - a poor choice, as it's not on a Metro line and driving/parking is a bitch. I've long argued that Apple should put a Store downtown, where one finds easy Metro access, a University, NGOs, and lots of private sector money (lawyers, lobbyists, doctors, etc.).

Apr 15, 08 - 06:51 pm Comment from: billy bob

What really ticks me off is how those dang liberals here in Texas got the state to collect taxes on downloads. Snuck it right by the republicans I 'spect. Dang em.

Apr 15, 08 - 07:25 pm Comment from: studentrights

@Ludor "Cue pirating frenzy."

Dead on. Unlike taxes on physical items like CDs, torrents don't have taxes.

Apr 15, 08 - 07:29 pm Comment from: Buster

Thankfully Obama will change overtaxing the people.

Apr 15, 08 - 07:30 pm Comment from: Ampar

"Your libs are the tax and spendaholics."

Her libs are what? Oh, you meant her lips are taxing spendaholics.

I get it now.

Apr 15, 08 - 07:32 pm Comment from: toonie

MaLvado

Bush cuts taxes and then drives the US right into the hole with a $500 billion deficit. What a smart guy.

With Republicans, it's more like tax-cut and spend, what they don't have.

At least Clinton was running a surplus which is where any smart household wants to be.

Apr 15, 08 - 07:36 pm Comment from: Your Mom Bluray

Read my Libs

Apr 15, 08 - 07:42 pm Comment from: TowerTone

toonie
Clinton never had a surplus.
And how many 'households' do you know that have their houses and cars all paid for? No debt whatsoever?
Now, can you tell me what the current deficit is?
Thank you

Apr 15, 08 - 07:51 pm Comment from: therepguy

Once in my life time, I would like to see a politician with the "balls" to raise income taxes for the good of a community... not just to raise money on the back of the few cause they see grouth and easy picking!

Apr 15, 08 - 07:54 pm Comment from: Jim - TIV

"Personally, I could do with one or two less wars."

amen sis.

Apr 15, 08 - 07:56 pm Comment from: Martin

I could do with one more war. Take Iran out now!!!

Apr 15, 08 - 07:58 pm Comment from: David

Tax, tax, tax. I think we should all stop working and put the politicians in our shoes. The day digital downloads are taxed is the day I stop buying them.

Apr 15, 08 - 07:59 pm Comment from: iLuvMyMacs

back to limewire.

Apr 15, 08 - 08:03 pm Comment from: Hard

Republicans:

Cut taxes and spend spend spend

repeat

Cut taxes and spend spend spend

repeat

Cut taxes and spend spend spend

repeat

then borrow borrow borrow borrow borrow borrow borrow:

let the Democrats figure out how to get out of debt.

then we'll call them socialists, liberals, communists, godless, terrorist supporters; get re-elected and then

Cut taxes and spend spend spend

repeat

Cut taxes and spend spend spend

repeat

then borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow borrow

Apr 15, 08 - 08:08 pm Comment from: @ TowerTone

So what was the Surplus that Bush was giving back to the tax payers? He said it was a surplus. That's why he gave it back.

Either he was lying or he's just the biggest idiot we've ever had placed in office. I'd say he's both and idiot and a liar.

Apr 15, 08 - 08:08 pm Comment from: Andrea

INTERESTING FACTS ABOUT THE PRESIDENT

I didn't know this, did you?


How Enron Worked the President


Are You Ready? How Enron Worked the President!

(This is an interesting bit of information that you don't hear much about.)

1. Enron's chairman did meet with the president and the vice president in the Oval Office.
2. Enron gave $420,000 to the president's party over three years.

3. It donated $100,000 to the president's inauguration festivities.

4. The Enron chairman stayed at the White House 11 times.

5. The corporation had access to the administration at its highest level and even enlisted the
Commerce and State Departments to grease deals for it.

6. The taxpayer-supported Export-Import Bank subsidized Enron for more than $600 million in just
one transaction.
Scandalous!
(Look below...)

BUT...the president under whom all this happenedWASN'T George W. Bush.

SURPRISE!



It was President Bill Clinton!

No surprise! And do you think Hillary didn't know?


Pass this on so the whole Country will know. The Media Won't!

Apr 15, 08 - 08:11 pm Comment from: G Spank

This is Bush's outlaw war coming back to bite us all in the ass.

Apr 15, 08 - 08:14 pm Comment from: MaLvado

toonie-
so u agree bush cut taxes.
As for your 2nd point- his spending- he has broke from traditional republican theory.

Also, never has the US run a surplus during a war.

Apr 15, 08 - 08:22 pm Comment from: OZZ

@There's the facts and then there's The Facts

You're like the holy bible...

Apr 15, 08 - 08:26 pm Comment from: specific

@ MaLvado- this is the first war that taxes have not been raised. Note the enormous deficit Bush has created for your great grand children.

@ Andrea - Maybe your story isn't true. And did you realize that the oil companies have made RECORD profits the last 6 years and the Bush administration CONTINUES to give the oil industries huge government subsidies. That must make you proud when you gas up at close to $4.00 per gallon (if you are lucky enough to live in the US)

Apr 15, 08 - 08:32 pm Comment from: Confused

No new tax is a good tax, but how come I find this less galling than then the Psystar thing? Time to go home for the day.

Apr 15, 08 - 08:33 pm Comment from: in case you don't know what a Subsidy is

subsidy |ˈsəbsidē|
noun ( pl. -dies)

1 a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive

Welfare, socialism, gov. handouts - for corporations

Oh, I see it's OK for corporations to get government handouts but not OK for citizens. I see your illogical thinking at work.

Apr 15, 08 - 08:46 pm Comment from: Roger MacDonald

We have been buying music from iTunes for years and have always
been taxed. We live in TN and before in FL.

Apr 15, 08 - 08:49 pm Comment from: Kim

And what is wrong with the oil companies making record profits? Is that illegal? Should it be illegal? What are you trying to say???

Apr 15, 08 - 09:01 pm Comment from: 84 Mac Guy

Where is Ron Paul when we need him?

Apr 15, 08 - 09:23 pm Comment from: MCCFR

Let's assume that iTunes Store has a US turnover of around $3 billion a year.

Let's then assume that the rate of tax being proposed is around 15%.

So, we're talking about $450 million each year.

or around $1.50 for each man, woman and child in the United States.

Given the level of public debt per capita is around four levels of magnitude away from $1.50, I can't help but feel that you're getting all riled up about the wrong issue here.

Presumably, many of you wanted the Federal Government to focus its expenditure on defence and paying the interest on public debt (which is where around 46% of your taxes get spent) so where do you think the money to pay for state-provided services like schools, police and fire brigades comes from?

Apr 15, 08 - 09:28 pm Comment from: TowerTone

specific
could you be more specific when you say "enormous deficit"? Are you talking about % of GNP, GDP, or "just a really, really big number I heard at the beauty shop"?

And high gas prices are what the Democrats have been proposing for years to curb consumption. What has changed? Now the oil companies can invest that money in new technologies and new fields.

Or, we can give it to the government so they can divert food to energy. Great plan. I'll stick with the oil companies and the free market.

Apr 15, 08 - 10:20 pm Comment from: poo

You Americans are so stupid.

Apr 15, 08 - 10:40 pm Comment from: James

@poo

Indeed we are. But no more or less than anyone else. Take your tea and get back on your boat. wink

Apr 15, 08 - 11:55 pm Comment from: ChrissyOne

Not even two pages yet? I'm so disappointed in you people.

I was just reflecting on Politics myself and Bubba, it's been quite a 5 star day.
I mean, who can make this stuff up? I sit here and think about how Obama took a shot at the poor narrow minded religious freaks, and then Hillary is out there pounding Crown Royal. Jesus, I can't decide who I like MORE today. If only John McCain would have, say, joined a death-metal band and maybe got dunk with Johnny Rotten and pissed on Regan's grave, I don't think I would have been able to contain my climax.
No no, none of that. Nothing but Tradition on the McCain house. Many fine generations of warm, family goodness... and all those Recipes. Good, honest plagiarism, that's what my grandaddy taught us all.
And he didn't even have a teleprompter.

And another thing... Why do we always hear about the 1st Lady To Be's goddamn cookie mix tips? I remember reading an insightful and informative interview with Theresa Heinz Kerry, on business management or some such thing, and then picking up Vanity Fair to find Laura's Raisin Nut Crumble recipe, along with some insipid story about Gramma intended to tug at my little heart strings. I bet Theresa still laughs and laughs about that little defeat every night, after a bottle or two of Night Train. That Laura, she's quite a Modern Woman.

Come to think of it, I'll bet the bitch stole it from Martha Stewart.

We really need the first lady to be our mom, don't we? And I think that's why Hillary offends so many men that just Loooved Nancy and Babbs - because Hill doesn't fit the phantasy of what they like to think their mothers are like. Makes you feel warm inside, I know.
Not to worry, boys. Mrs. McCain has just the right combination of the inoffensive and not-quite-all-there security of Nancy, eviscerally evil yet fascistly composed aloofness of Barbara, and a healthy dose of Conservatasty Hot Blonde that even a Kennedy could love.
Cindy McCain, as MILFable as she is, seems to be lining herself right up to be the GOP's new Head Whore. She already looks like a Fox News anchor (isn't she?) and her daughter Meghan... holy shit. I'd almost vote for the guy just to watch Fox try to cover up that kid's coming downward spiral. I think Lindsey Lohan could get a break from the press if that one had bragging rights at the CC. "Yeah, well the president is my DADDY, bitches. I SAID keep the SHOTS COMING!"
Better comedy just isn't available these days, my friends, and this stupid race is finally getting fun. Going forward... I predict a sharp uptick in gay hooker drug terrorist baby eater scandals in the coming weeks. Obama will dress up as Lenin and goose step across the Lincoln Memorial while singing Stayin' Alive. Hillary will go on a week long bender in Vegas and kill a craps dealer named Vance Forrester. And McCain is going to be found in bed with a boy, 2 dogs, a musk ox, a jackhammer, a dozen oranges, and, probably worst of all, Nancy Pelosi.

Stay tuned. I'll make popcorn.

-c

Reader feedback page 1 of 2 pages:  1 2 >

Always -- Free ground shipping with orders over $50 at the Apple Store.

Add Your Feedback:

Register or Login

Name:

Email: (optional)

Emoticons | Allowed HTML Tags

Remember my info   Notify me of follow-up comments?

Please enter the "MDN Magic Word" you see in the image below: