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New York Wants To Tax Internet Downloads

Posted by CmdrTaco on from the bits-for-bucks dept.

An anonymous reader writes "NY is considering taxing 'video and music' downloads to offset a burgeoning budget deficit." How long before we all have meters on our routers? This version is just a 4% tax on movies and songs downloaded from services like iTunes, but I'm sure if they could figure out a bit tax, they would.

8 of 485 comments (clear)

  1. Old news is old by superbus1929 · · Score: 4, Informative

    This is nothing new; they've been talking about this for months, maybe over a year. It's caused issues with Amazon in the past, if I remember right.

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    1. Re:Old news is old by ShawnCplus · · Score: 5, Informative

      Most online retailers hate New York because we have horrible taxes, I believe NewEgg stopped requiring users to pay the tax in NY which caused them some issues. This will only exacerbate the intertube hatred of NY

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    2. Re:Old news is old by larry+bagina · · Score: 4, Informative

      They've been talking about it for a while, but it's different than the amazon tax. Amazon (and other mail order/internet stores) don't collect sales tax if they don't have a physical presence in the state. New York wanted to reclassify affiliate programs so that Amazon (and anyone else with an affiliate in New York) would need to collect NY state sales tax.

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    3. Re:Old news is old by quanticle · · Score: 5, Informative

      Well, the precedent would last until some retailer sued the state in federal court on the exact grounds you've brought up - regulation of interstate commerce is a matter explicitly reserved by the federal government.

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    4. Re:Old news is old by FireStormZ · · Score: 5, Informative

      "You wouldn't think that a state could tax interstate trade"

      A little known fact is that the 'sales tax' is more a 'use tax'. If someone in NY drives to PA to by cloths and save the tax money they are legally required to pay NY taxes on it (few actually do this). This is why NY (outside of the City) is dying, its not just Buffalo but everywhere except Albany (seat of state government) is hurting. Taxes in NY are just way to high for business to start setting up shop and competing with neighboring states.

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    5. Re:Old news is old by phorm · · Score: 5, Informative

      Um? My guess would be:

      a) Via the internet, which you pay for

      b) Via postal mail, which you pay for

      c) By plane, train, or automotive, for which the fuel surtax and others are paid for by the transporter and then considered as part of the bill paid for in (b)

  2. Re:I want to see a provision in the stimulus packa by PeeAitchPee · · Score: 4, Informative

    California has almost 3 million illegals. That's almost 8% of the state's population who are not paying taxes, and it's part of the reason the state is $41 billion in the hole (the cost of illigal immigrants to California is $10.5 billion annually, according to the Federation for American Immigration Reform). People who think it's "racist" to state that illegal immigrants generally don't pay taxes are full of shit and clearly don't have a clue as to what real racism is.

  3. Re:I want to see a provision in the stimulus packa by cortesoft · · Score: 4, Informative

    It isn't exactly true that illegal immigrants don't pay taxes. For example, many illegal immigrants use a fake social security number so they can get a job. Just like any other worker, part of their income is withheld and sent to the government (especially FICA and payroll taxes). In fact, since they are using fake social security numbers, they can't file for any refund and often times end up paying more than they would have if they had been legal citizens (since many lower income workers end up receiving money back at tax time). While some illegal immigrants work under-the-table jobs and don't pay any income taxes, they still pay sales taxes and other non-income taxes. In addition, many illegal immigrants avoid taking advantage of social services out of fear of being deported, making them less likely to be a drain on these taxpayer-supported institutions.

    While illegal immigration is a complex and vexing issue, do not make it out that illegals do not pay taxes. Here is a look at the issue: http://www.taxfoundation.org/blog/show/1424.html