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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.'"

21 of 840 comments (clear)

  1. Democrats vs. Republicans by Seoulstriker · · Score: 5, Insightful

    I think we should try to avoid the democrat vs. republican debate and just accept that the government is thinking about taxing the internet.

    Discuss.

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    1. Re:Democrats vs. Republicans by jhigh · · Score: 5, Insightful

      I agree that this is essentially a bi-partisan issue. However, I wonder if you would have posted this comment if the governor proposing the tax had been a Republican...

      --
      Social Engineering Expert: Because there is no patch for stupidity.
    2. Re:Democrats vs. Republicans by dj_cel · · Score: 3, Insightful

      It is foolish to think in terms of Democrats vs. Republicans at this point anyway. Your allegience to whatever party you belong to doesnt' stop the fact that most of the money either side receives is from wealthy companies and individuals whos wants out-weight the general publice. Both parties do what is good for big business, albeit in different ways. The parent is right about this for sure, conceptualize it as rich people wanting to get and stay richer than you.

      --
      Those who can make you believe absurdities can make you commit atrocities. - Voltaire
    3. Re:Democrats vs. Republicans by cayenne8 · · Score: 4, Insightful
      Geez....why can't the legislatures see we're freaking taxed ENOUGH. My paycheck is near 30%+ taxed with Fed, State, Medicare and fucking SS that I'll never get back fully. Sales tax here is like 9%...over and over and over again.

      We need to come up with some way, to make the politicians 'feel' each tax increase. Or possibly...for them to impose a new govt. program, they have to pick an existing one to scrap. Somehow put a cap on government....we don't need more taxes...we need smarter spending with what we have, and clean house now.

      Somehow, it seems that govt. politicians, are so abstracted from how every single tax steals money from their constituents. It must be something similar to casinos using chips instead of real money...it is much easier (among other reasons) to gamble chips that it would be to gamble with real greenbacks.

      We need to come up with some way for politicians to vividly see what each new tax does to people and the economy..in such a way as for the general public to see how they view it...

      Ok...rambling on...but, I'm sick and tired of a new tax here...new tax there...lets make it somehow capped off...and for every new tax and program in....there needs to be an old tax and program out to balance things...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    4. Re:Democrats vs. Republicans by Skye16 · · Score: 5, Insightful

      I don't mean this as a flame or anything, but it's becoming a LOT easier for Democrats to justify "Tax and Spend". Lately, just about every Republican in office is for "Don't Tax, But Spend Just As Much As If We Were". As a Republican, you should go kick your party in the goods for being so completely irresponsible. I can respect someone who wants a minimal government and minimal taxing; I don't agree, but I can definitely respect it. I have no respect for someone who wants an epic government and taxing that doesn't even support it. That's just ridiculous.

      (Hopefully people can discuss this without getting their panties in a bunch :O)

    5. Re:Democrats vs. Republicans by Skye16 · · Score: 4, Insightful

      You still have a Legislature that has to approve his budget for the year - you can't dump all the blame off on him.

      Also, it's false that anyone who voted for Bush supports "don't tax and spend (and spend and spend and spend)" - people vote (or not vote) for candidates for any variety of reasons. Some things are "deal makers or breakers", and others just don't matter as much (individually). I don't like the guy as a President either, but lets try to maintain some semblance of rationality and honesty, shall we?

    6. Re:Democrats vs. Republicans by wmspringer · · Score: 5, Insightful

      Your information is out of date. The 2005 budget proposed by Bush freezes all federal spending and eliminates or consolidates many departments.

      All federal spending, of course, not including the Pentagon's budget (which is being increased to $419 billion, not counting the money for Iraq and Afganistan) You're right, though, they did manage to cut the programs that serve the poor.

    7. Re:Democrats vs. Republicans by bluGill · · Score: 3, Insightful

      Cause when it comes down to it people don't really want low spending. They want low taxes and all the government services they can get. Everyone has their own pet project they don't want to see cut, but they want everyone Else's project cut.

      Nobody is willing to say "Start with my items, and then compromise by taking everyone Else's too." Well they might say that, but look at how they vote. Anyone who cuts spending is attacked by the opponent next election, and likely to loose. Raise taxes and you are attacked and loose. Spend without taxing and people moan, but they won't vote against you. Politicians are well trained in what we want, and they give it.

      Try proposing cutting Nasa's budget on slashdot. (In a story where their budget is on topic, this comes up often)

    8. Re:Democrats vs. Republicans by Ironsides · · Score: 4, Insightful

      That's why you should have a flat tax with absolutely no deductions at all. Start with 25% and work your way from there. Then, no one can complain about how someone else isn't paying their fair share or that someone else is using a loophole. Also, with no brackets, you aren't having an auto increase in taxes every X years as inflation raises your salary (as the brackets stay the same). If the gov tries to raise the percentage you can ask them why they need a larger portion of the taxpayers money than before.

      --
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  2. Re:IANAL, but..... by jkabbe · · Score: 4, Insightful

    Keep in mind that there is a difference between "voluntary" and "unenforceable." They can't directly collect the sales tax (from downloads or from, say, book sales) but you are still technically breaking the law if you don't "voluntarily" pay the tax.

    Of course I am still of the opinion that this violates the commerce clause.

  3. Re:Great! by Anonymous Coward · · Score: 5, Insightful

    Almost, but not quite!

    5% of free is a whole lotta not-a-damn-thing.

  4. ahaha, honour system? by Jailbrekr · · Score: 4, Insightful

    While the while "voluntary" part of the bill seems to be quite silly, it is an insideous attempt to give an "internet tax" a legal foothold.

    It is difficult to implement a mandatory tax from scratch. It is much easier to take an existing "voluntary" tax and make it mandatory.

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  5. Simple: Double taxation by TheCubic · · Score: 3, Insightful

    It's _also_ stupid because it's obvious double taxation:

    1) You pay a company for broadband, and you pay the gov't taxes for that
    2) You pay the gov't for the only use of broadband

    'Creative' taxes are dumb. This coming from a state (MN) where the governor is all about 'creative' taxing.

  6. They're taxing sales, not the Internet by jfengel · · Score: 5, Insightful

    Governments raise money to spend on roads, schools, and police with taxes. The money comes from somewhere; if you want those things you've got to pay for them. You may well be spending too much for what you're getting, but that's a separate issue.

    The question here is, what do you tax? It's easiest to raise money by taking a piece of the money every time it moves. Tax the money when it gets paid to you. Tax them money when you pay for something.

    You can also tax the stuff that doesn't move, like the property taxes on your house. Or you can "tax" for use: toll roads, for exampe. But nobody wants to pay for police on an as-needed basis, and we like the idea that everybody is guaranteed an education, even if they can't afford to pay for it.

    The article is suggesting that there are sales happening that aren't being taxes. Most states already try to collect taxes on physical objects, even if they're sold over the Internet, though the rules vary from state to state. They're trying to both increase revenue and be fair. The states really hate it when people buy stuff over the Internet, because that means that the money is being sent to another state; not only do they lose tax revenue but it means in-state businesses suffer.

    If you believe that they can tax stuff when it's sold, why not tax nontangible items? They already tax services; in most states you pay tax when the guy fixes your refrigerator.

    It doesn't sound like an "internet" tax to me. They're just trying to make sure that the Internet isn't any different a place to make sales than local stores are.

  7. Not fair by Kohath · · Score: 3, Insightful

    It's not fair that taxes are applied to a CD, but not applied to an iTunes download. Solution:

    Repeal the tax on the CD and cut government spending.

    A similar technique will solve all other cases of taxation that aren't fair.

  8. No, you are NOT taxed enough! Please read: by Loundry · · Score: 5, Insightful

    Geez....why can't the legislatures see we're freaking taxed ENOUGH.

    You're a wage earner. You will never be taxed enough. Each dollar that the government seizes is one that it can spend on buying votes rather than you spending it on your "selfish whims" (you know, like feeding your family). Votes are for sale, and the means to buy them are government programs. Votes are the key to power. If you're a politician, then why don't you take someone's money and buy some? If the victim isn't going to vote for you anyway, then you've got nothing to lose!

    Both Democrats and Republicans play this hideous game. The ultimate long-term goal is to move 100% of the tax burden to a minority of citizens. That way, every tax increase will be immune from voter resistance. One side will be able to say to 51% of the electorate, "Vote for the other guy and he'll make you pay taxes!"

    --
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  9. Re:No, you are NOT taxed enough! Please read: by lgw · · Score: 3, Insightful

    Both Democrats and Republicans play this hideous game. The ultimate long-term goal is to move 100% of the tax burden to a minority of citizens. That way, every tax increase will be immune from voter resistance. One side will be able to say to 51% of the electorate, "Vote for the other guy and he'll make you pay taxes!"

    1% of the population already pays 33% of federal income taxes. Any across-the-board tax cut is met with cries of "33% of the tax cut goes to the richest 1%! Evil tax cuts for the wealthy!". What a system.

    --
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  10. Re:For clarity's sake by Gabrill · · Score: 3, Insightful

    Parent post's (un)reasoning is simmplistic and uninformed. At $20k income, 17% taxes would leave $16,600 to live on. at $100k income, that same 17% leaves $83,000 to live on. (These are parent's numbers, not the actual ones.) The upper tax bracket has the means to lobby a straight tax line, but they willingly give up a greater share to Uncle Sam as a way to ease the burden on the middle and lower class. Don't worry, their tax lawyers are still dreaming up ways to deduct their gold plated 83" plasma TV's.

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    Always going forward, 'cause we can't find reverse.
  11. Re:Republicans vs. Republicans by mcc · · Score: 4, Insightful

    You still have a Legislature that has to approve his budget for the year - you can't dump all the blame off on him.

    A legislature which happens to be completely controlled by a republican party which, due to circumstances of the moment, follow and support every single decision of the bush administration without question.

    How convenient.

    Also, it's false that anyone who voted for Bush supports "don't tax and spend (and spend and spend and spend)" - people vote (or not vote) for candidates for any variety of reasons.

    If unconditionally re-electing someone who demonstrates fiscal irresponsibility is not support for fiscal irresponsibility, then what is?

    It doesn't matter if that was the individual voter's "swing issue". They voted for it.

    I am continually perplexed by the extent to which people defending the Bush administration jump through bizarre hoops to prevent anyone taking any sort of blame or even responsibility for that administration's actions. If the president is not responsible for the budget when he has complete sway over congress, who is? If the people who voted that president into power knowing full well what he would do with it are not responsible for or "supporting" him, what do those words even mean?

    There was one specific time at which the president's desk had on it a plaque saying "the buck stops here". The Bush Administration and its defenders, despite having no credible opposition or oversight for their actions either in congress or the media and a complete control of the agenda of the Republican party, seem to disclaim either that the buck at any point passed through their hands or even that they have a clear idea what, if they saw it, the buck would look like.

    I'd agree George W. Bush himself is of course not personally responsible for any of this, since it seems to me most of the time frankly that almost none of the decisions in this administration are made or possibly even entirely understood by him, but the fact is it is his job to oversee and take responsibility for the members of his administration and the legislation he signs into being. He's the president of the united states of america. If he isn't doing this he isn't doing his job.

  12. Re:For clarity's sake by CrimsonAvenger · · Score: 3, Insightful
    The upper tax bracket has the means to lobby a straight tax line, but they willingly give up a greater share to Uncle Sam as a way to ease the burden on the middle and lower class.

    This almost made me laugh hysterically. Are you really stupid enough to believe that the upper tax brackets "willingly give up a greater share" "as a way to ease the burden on the middle and lower class"?!

    If so, I have some great beachfront property to sell you in South Dakota....

    --

    "I do not agree with what you say, but I will defend to the death your right to say it"
  13. Ether Goods? by Jeremiah+Cornelius · · Score: 4, Insightful
    I will pay with Ether Cash!

    Reminds me of Mullah Nasruddin!

    One day the Mullah went into an inn as he felt a little hungry. However, he found at once the food there was too expensive for him. He was just about to leave when the innkeeper came up to him.
    "Do you think you can leave without paying?" said the innkeeper.
    "Why should I pay since I haven't eaten anything here?" asked Nasruddin.
    "Then why did you come in?"
    "I found your food smelt good,but it was too expensive for me!"
    "Well, now that you've enjoyed smelling my food, it is the same as enjoying the food itself, so you have to pay."
    "The mullah frowned at the innkeeper's words, then smiled and took out his purse, jingling the coins in it:
    "Do you hear the sound of my money?"
    "Yes,I do." the innkeeper said in excitement.
    "Then we have concluded business!" cried Nasruddin, "That sound is the same as enjoying the money itself!"
    --
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