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Wisconsin Governor Proposing Tax On Downloads
Christopher Reimer writes "Ars Technica is reporting that the Wisconsin's governor is proposing a tax for downloads. From the article: 'Wisconsin's Democratic governor thinks it's not fair that tangible items get taxed while downloads, like music, ebooks, software, etc., go completely untaxed. So, he proposes to rectify the situation by having Wisconsin's 5% state sales tax apply to Internet downloads.'"
IANAL, but I thought this might violate the Internet Tax Freedom Act of 1998 (which was renewed in 2003)......
However, this comes straight from the federal law -
SEC. 1101. MORATORIUM.
(b) Preservation of State and Local Taxing Authority.-- Except as provided in this section, nothing in this title shall be construed to modify, impair, or supersede, or authorize the modification, impairment, or superseding of, any State or local law pertaining to taxation that is otherwise permissible by or under the Constitution of the United States or other Federal law and in effect on the date of enactment of this Act.
The funny thing is, the whole law is VOLUNTARY! Although I don't think it'll matter if they really want to get the money....If it comes to pass, they'll probably make a provision to make it mandatory
-thewldisntenuff
My MythTV HowTo
Article summary is wrong and intended to cause a flamewar.
Many states have what they call a "use" tax. In other words if you bring something into the state (and "use" it?) that was not purchased in the state you have to pay tax on the purchase price. This allows them to circumvent the Commerce Clause and effectively charge a sales tax on out-of-state purchases.
Just confirming, from the article linked inside the ./ linked article:
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Gov. Jim Doyle wants you to pay Wisconsin's 5% sales tax whenever you pay to download a song, book, movie or piece of art
Link: http://www.jsonline.com/news/state/mar05/307622.a
I live in Wisconsin. The reason Gov. Doyle is proposing this (and a slew of other new taxes) is because he doesn't want to cut any spending to balance the state budget. His current budget proposal for the next two years (Wisconsin does two year budgets) projects a 1.8 billion dollar deficit. Compounding problems for him is that Wisconsin is already a tax hell and there is strong public support for a property tax freeze, thus he's looking for alternate ways he can raise taxes.
Yes, considering the proposal is for 5% of the purchase price. If the purchase price is $0, the tax is zero.
The article (not the Ars Technica writup) specifically states its for purchased downloads. For example, I recently purchased some software online that gave me a choice of either having a CD shipped to me (in which case the cost of shipping was added) or downloading the software for instant gratification. The proposed law would mean that if I chose the download method I would be subject to the same sales tax I would have paid had I chosen to have the CD shipped to me.
There is no proposal to tax all downloads.
Its a sales tax, meaning that some form of sale had to have occurred.
You're thinking of the sales tax that retailers collect from you and then file with the state. That's not this.
This is the sales tax that Wisconsin collects as a part of the state income tax. There's a line on the Wisconsin income tax that asks the filer to enter the amount of sales tax due on items purchased from out of state but used within the state, items you didn't pay tax on at the time of sale. For example, internet and mail order purchases.
Of course, the thing is - this line is an "on your honor" line, really. The state doesn't really check to see if the amount - if any - that you pay on this line is actually the amount you owe. As a result, I think I heard only a little over 20,000 people actually enter anything onto this line.
There's been noise that they may start using this line as a trigger for audits, but to my knowlege, at this point, it's just noise.
You're correct, but you're also unfamiliar with the situation in Wisconsin that is leading to this tax proposal. The governor is claiming to have a balanced budget without raising any taxes. He's also vetoing Republican legislation for a property tax freeze.
At the same time, he's proposing this new tax and increasing spending. It's technically not raising taxes since it's a brand new tax, but logically it's the same thing.
What this really comes down to is a wasteful government throwing money at different programs, increasing taxes for some of the highest taxed citizens in the country, and claiming that to do otherwise will be "hurting our kids education".
You have enemies? Good. That means you've stood up for something, sometime in your life. --Winston Churchill
Lately, just about every Republican in office is for "Don't Tax, But Spend Just As Much As If We Were".
Of course. You understand the reasoning behind this, don't you?
As a Republican, you should go kick your party in the goods for being so completely irresponsible
Ah. I guess you don't.
Hopefully people can discuss this without getting their panties in a bunch
I don't think you're going to get what you hoped for after I finish...
Ask yourself ONE question: Which presidential party slashed welfare? Ok, TWO questions: Which presidential party ran up such a high debt that entitlements HAD to be cut?
Do you see the strategy yet? Just in case not, I'll spell it out. The Republicans, under Ronald Reagan (who popularized the phrase "welfare queen") ran up a HUGE debt. The Democrats, under Bill Clinton, HAD to cut something. Welfare, a popular Republican target, and a popular Democratic program, got cut.
Now the Republicans, under George Bush, continue to run up a huge debt while popularizing the notion that Social Security is dying. The Republicans have NEVER been supporters of social securty.
Guess what will happen next? If your panties aren't in a bunch yet, then you're not paying attention.
Let me sum up: The Republicans are EVIL. They run up a HUGE debt so that something has to be cut from the budget. The Democrats are STUPID. They cut their own social programs.
THAT, I believe, is the unspoken plan of the Republicans. If you ignore their words and observe their actions, it's the only thing that makes sense.
However, the joke just isn't true.
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