Slashdot Mirror
Connecticut Considers Digital Download Tax
SonicSpike writes in with a story about the latest state contemplating raising revenues by taxing the net. "Downloading music, movies, e-books and Apps could soon cost Connecticut residents more as lawmakers consider a tax on digital downloads. The bill, proposed by the General Assembly's Finance, Review and Bonding Committee, would have consumers pay the 6.35% sales tax on any electronic transfer. Supporters say the bill would level the playing field for brick-and-mortar retailers in the state who are already required to charge Connecticut sales tax to consumers who purchase these products in their stores. About 25 states around the country have already begun taxing digital downloads."
Couldn't you just use an access point across the street ( and likely in another state) and bypass the whole problem?
Faster! Faster! Faster would be better!
1) The article is pretty much the summary? 2) "About" 25 other states? They can't even do the research to see exactly how many states already do this? 3) Half the states ("about" anyway) already do this, yet it is news on Slashdot now? Yes, I must be new here.
So only stupid people pay real money for "ephemeral" products?
I don't know about that, but for sure only ephemeral people pay for stupid products.
Ezekiel 23:20
"Supporters say the bill would level the playing field for brick-and-mortar retailers in the state who are already required to charge Connecticut sales tax to consumers who purchase these products in their stores."
An argument could easily be made that the playing field is already level. The advantage of ordering online is one of cost, with typically lower prices and less of a drain on local infrastructure (it costs the state / local government more to provide fire / police protection / emergency medical services / roads / etc. to a few dozen brick-and-mortar stores than to a single warehouse), and possibly hard to get items (ones which cannot be carried locally, for lack of space in a store; commercial space being at a premium). The advantage to brick-and-mortar stores is time, with the more popular items you are typically looking for already in stock, hence the price premium ("I need this item today").
As such, the advantages on both sides balance each other out fairly well.
This tax, of course, is then a simple cash grab. Going off a stereotype of legislatures, we will assume that the state coffers are beginning to, if not already are, empty. As such, someone took a look at things that are considered popular enough to tax (demand is unlikely to change, so it's *free* money they can skim off the top, without impacting the industry; this is also an economics-FAIL, but the people in charge love to hear things that confirm their bias), and barfed up a semi-palatable reason for this new tax.
I am John Hurt.
What about a VPN connection to another state? And if that works, would it become illegal?
But if they didn't how could Sen Porkman and Congressman Kickbackus waste money like drunks in vegas and throw away billions on useless military shit? I mean look at the F35, stealth makes it both a lousy fighter (lack of engagement time due to no external fuel tanks and lack of firepower due to no missile hardpoints) AND a lousy bomber (both the fuel and hardpoints problems) so you'll end up with the F15 having to babysit the damned thing so it don't get its ass kicked, then of course there is the Ford carrier, we already have TEN to the next largest countries TWO but hey, who cares if we are ass deep in red ink,gotta show our military muscles right?
Frankly we could probably lower taxes AND pay for our social programs if we just got rid of really dumb shit. Get rid of the dumbass F35 for more F15s and add some stealth eagles if you want something "stealth", fix the damned border so we aren't wasting billions in law enforcement and security theater when a terrorist could literally drive a rider truck with a bomb right across the border and into any city they wanted, get rid of all the loopholes that let corps like GE pay ZERO taxes on billions in profits, tax the living shit out of the speculators that are constantly flipping stocks and instead reward actual long term investment so that companies can actually do things that will grow their businesses without fear that the speculators will tank their stock price, basically bring common fucking sense back into the system because lord knows we are severely lacking in it ATM.
ACs don't waste your time replying, your posts are never seen by me.
I realize the world doesn't work like this. But in my opinion if they're going to tax the purchase it should then fall under all the rules of buying from a Brick and Mortar store too, such as the First-sale doctrine. After all, if I buy a book from a brick and mortar I'm legally allowed to sell that book to someone else. On the other hand, when I download from iTunes I have no way to sell that item, because I didn't purchase it, I "licensed" it. Which the businesses love to remind us. If I'm then being taxed as if I'd purchased it, then the states should require the companies by law to treat it like any physical purchase and allow me to transfer the ownership of it.
PayPal is never a solution to anything.
PayPal is.
Actually, microeconomics theory shows that the prices would drop and the corporations would make a higher profit. Some companies will be willing to slightly lower the prices. This will pressure other companies to lower prices until an equilibrium is reached. Eventually, the abolished taxes will go partly to the consumers and partly to the producers.
That works when you aren't in a monopoly or cartel-controlled market, which all of ours are now.
Thanks to the polices of the State that encourage this behavior.
That would never work. After all, people never regularly cross the border into Pennsylvania or Delaware to buy fireworks or fill their trunk with tax-free cigarettes. Nope, never happens.
Random Thoughts From A Diseased Mind (Not For Dummies)