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.'"

Comments

IANAL, but.....

[thewldisntenuff]

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

Re:Don't think it is related to p2p...

[prdallan]

Just confirming, from the article linked inside the ./ linked article:

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.as p

Re:Democrats vs. Republicans

[Zuke8675309]

I say, if this is what the people of Wisconsin want, then they should be allowed to have it! God bless them for finding yet another source of revenue they can piddle away until they need another fix. Maybe they want to build an "art park" In Milwaukee to compete with Chicago in the category of ostentatious waste.

I know this isn't a left-right thing, but I don't understand why a Democrat would bolster this idea, since I feel it is a tenet of the left to play hands-off with the net. At least, I consider myself pretty far-left and I certainly think this is a foolhardy idea given the current disparities in tax policy. I tend to think this guy must be in the pocket of some special interests, or he himself stands to benefit in some way.

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.

Re:Don't know if this helps.....

[Mancat]

However, the joke just isn't true.