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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.'"

15 of 840 comments (clear)

  1. Great! by infinite9 · · Score: 5, Funny

    Now p2p users can be charged with tax evasion!

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

      Almost, but not quite!

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

  2. 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...

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    2. Re:Democrats vs. Republicans by Zuke8675309 · · Score: 5, Informative
      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.
    3. 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)

    4. 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.

  3. Psh, politicians. by RootsLINUX · · Score: 5, Funny

    Is this really an important and pressing matter for the governor to concern himself with? Shouldn't he be more focused on.....I don't know, making more cheese? >_>

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  4. IANAL, but..... by thewldisntenuff · · Score: 5, Informative

    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

  5. Stupid, yet Illegal. Brilliant! by Onimaru · · Score: 5, Interesting

    Okay, so this is obviously dumb, but I'll go one better. It's also probably unjustifiable and unconstitutional.

    The general justification put forth for sales tax is that it's a tax on doing business in the state and using the existing infrastructure of that state so to do. The internet doesn't really do that.

    Also, there's a good argument to be made that the Negative Commerce Clause prohibits this kind of action by a state or local government. In essence, Congress gets to regulate interstate commerce, not Wisconsin.

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  6. Sounds great! by Cytlid · · Score: 5, Funny

    That means I get a refund for uploads, right?

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  7. Re:Don't think it is related to p2p... by prdallan · · Score: 5, Informative

    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

  8. 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.

  9. 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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  10. Re:Don't know if this helps..... by Mancat · · Score: 5, Informative

    However, the joke just isn't true.

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