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  • iTunes May Be Forced to Charge Local Tax if New Federal Law Passes


    The tax man may be coming for US consumers of digital content and other goods purchased online. US Senator Richard Durbin (D-IL) is taking direct aim at the likes of iTunes and Amazon in an effort that could force them to begin collecting local sales tax on all online transactions.

    Durbin, the second longest serving Democrat in the US Senate, isn't dishing many details on the proposal for now. It's believed the measure will be formally introduced sometime next week - you know, after Tax Day comes and goes. Still, the breadth of the anticipated proposal is seemingly in line with the longstanding remarks Durbin and some of his colleagues in Congress have made in recent months regarding online transactions and the process of collecting local taxes. "Why should out-of-state companies that sell their products online have an unfair advantage over Main Street bricks-and-mortar businesses?" Durbin said in February. "Out-of-state companies that aren't paying their fair share of taxes are sticking Illinois residents and businesses with the tab."

    Unfortunately for lawmakers, however, simply passing a bill demanding Apple, Amazon, and others to charge local taxes will not be uncomplicated. With 7,500 different taxing jurisdictions in the United States today, no one has the slightest clue as to how Congress might smoothly implement or mandate such a sweeping overhaul.

    According to CNET, The Direct Marketing Association, which filed suit against the state of Colorado in 2010 to impede a similar law from taking effect, says it will fight Durbin. "You're just giving the states a blank check to make changes without any congressional oversight," says Jerry Cerasale, the DMA's senior vice president for government affairs. "We oppose that...We think that's abrogating the authority of Congress."

    Source: CNET
    This article was originally published in forum thread: iTunes May Be Forced to Charge Local Tax if New Federal Law Passes started by Michael Essany View original post
    Comments 125 Comments
    1. thazsar's Avatar
      thazsar -
      They're finding anything to pay for this deficit!
    1. chasev2's Avatar
      chasev2 -
      I have a friend who lives in Pennsylvania and he already has to pay taxes on iTunes store purchases. Obviously some states already have the right to collect local taxes through the iTunes store.
    1. mr117's Avatar
      mr117 -
      Penn. has pay roads. Why the surprise that they now have taxes for digital content?
    1. klouud's Avatar
      klouud -
      they rape us in taxes! We need to just approve the fair tax and get it over with. Sure we'd pay more on sales tax but we would spend so much less in taxes overall, have more overall money to spend, and the government would collect so much more in taxes that things would be great!

      Plus drug dealers, criminals in gerneral, tourists, and illegal immigrants would get hit with the tax as well. With more than 12 million illegal aliens in the US, that additional tax alone would boost collected taxes.

      But the plan in place is so highly manipulated with many people that are making a killing on it that they don't want to go to a fair system that cannot be manipulated.

      tim
    1. RICO_'s Avatar
      RICO_ -
      They'll never get this deficit paid for. This country is f'd!

      Enjoy ur iTunes while it lasts. Pretty soon this country won't be able to pay for its own self defense....and then we'll be in a heap of trouble.
    1. Bluprint's Avatar
      Bluprint -
      Like it or not, some cities were built by drug dealers, tourists, and illegal immigrants. We got to see the bigger picture and hit the greedy billionaires that are ruining the economy.
    1. SRPrentice's Avatar
      SRPrentice -
      No surprise this is coming from Illinois. We still have tolls on highways and our roads look worse than other states that don't have tolls. Just another way to take money from us.
    1. urwack's Avatar
      urwack -
      I live in NY where Some bridges cost $12 to go over so I am
      used to getting taxed on everything and I believe iTunes/Amazon already hit NYer's with a tax on thier products anyway
    1. iPhonePilot's Avatar
      iPhonePilot -
      I'm with Blueprint...

      ""Like it or not, some cities were built by drug dealers, tourists, and illegal immigrants. We got to see the bigger picture and hit the greedy billionaires that are ruining the economy.""

      ===========

      SOOOOO very true!!! those are the f' asses we need to go after!! these are the greedy bastards that have the country the way it is- more more for them; much much less and less for us...

      Trust me I know them personally, including that one senator that ran for presidency a few years back that I rather not mention but is married to the ketchup lady...
    1. Go Gators's Avatar
      Go Gators -
      Typical liberal democrat. Spend Spend Spend, Tax Tax Tax.
    1. TheJailbreakGenius's Avatar
      TheJailbreakGenius -
      Quote Originally Posted by thazsar View Post
      They're finding anything to pay for this deficit!
      This would work very well!
    1. SuprXY's Avatar
      SuprXY -
      I already pay tax on iTunes, but not amazon. Because there is an apple store in the state they charge tax on purchases from iTunes or the online apple store.
    1. bowserm's Avatar
      bowserm -
      I have been paying taxes on my purchases for a few years now in Canada.

      If you are buying a 0.99 app/game what is another 0.15?
    1. thetoothfairy's Avatar
      thetoothfairy -
      Yup been paying tax in itunes for along time now...
    1. andypropaganda's Avatar
      andypropaganda -
      This is hilarious... They're worried now about piracy. Well, add tax and see how that helps to curb the problem. Oh, wait, I meant increase... watch how it INCREASES the problem. If people don't want to pay for digital content as it is, why the hell would they want to pay for it if it is taxed? America, the brightest country east of the Atlantic ;-)
    1. trentmorris's Avatar
      trentmorris -
      The day a Democrat doesn't vote for more taxes.. that would be a news story.
    1. roraniel's Avatar
      roraniel -
      Same in North Carolina. NC and other states have a law that says, if the company has a business entity in the state they must collect local taxes for online purchases, so any state with that law and a Apple store requires them to collect.

      Quote Originally Posted by chasev2 View Post
      I have a friend who lives in Pennsylvania and he already has to pay taxes on iTunes store purchases. Obviously some states already have the right to collect local taxes through the iTunes store.
    1. mr117's Avatar
      mr117 -
      Fair tax? You mean flat tax? Right, Donald Trump and I both pay 20% of our gross income. After taxes, he has $200 million left and I have $50-60 thousand. How about if we raise taxes on the rich and make them pay their fair share? No more hiding the money, no more write offs, no more sweetheart deals, no more corporate tax benefits, no more corporations paying nothing in taxes, no more corporations that make a billion dollars in profit getting tax refunds? This isn't about liberals and conservatives, this is about business. Do they run us or do they answer to us? If they pay a fair share, no more issues. But they can vote with their $, and politicians and judges dance to their tune. While the media whips people up, and people call themselves red or blue, business just keeps getting richer and we (all of us) keep getting poorer. It used to be said that a Republican is just a Democrat who made some money. Soon, as the vast majority of Republicans find that their leaders have sold them and their children out to big business, they may find themselves looking in a different direction.

      Just the same as it ever was.
    1. MagicJustin's Avatar
      MagicJustin -
      Quote Originally Posted by bowserm View Post
      If you are buying a 0.99 app/game what is another 0.15?
      It's 15% on top of your purchase. Being self-employed, I already lose about 15% of my income to taxes (luckily there are write offs for that), then what I get to keep, they want another 7-15% for sales taxes. And taxes on many other things (too much to write here)

      I'm not against taxes, I'm against the way the money is used. We hand out welfare and food stamps without requiring them to work for it. I'm all for helping people get back on their feet, but not enabling them to "use" the system. I know of a woman who got pregnant just so she could stay on the system.

      I can see this blowing up on this forum. I personally don't have a problem with the sales tax, just the way it's used.
    1. 5h4d0w's Avatar
      5h4d0w -
      Quote Originally Posted by klouud View Post
      they rape us in taxes! We need to just approve the fair tax and get it over with. Sure we'd pay more on sales tax but we would spend so much less in taxes overall, have more overall money to spend, and the government would collect so much more in taxes that things would be great!

      Plus drug dealers, criminals in gerneral, tourists, and illegal immigrants would get hit with the tax as well. With more than 12 million illegal aliens in the US, that additional tax alone would boost collected taxes.

      But the plan in place is so highly manipulated with many people that are making a killing on it that they don't want to go to a fair system that cannot be manipulated.

      tim
      YES! Exactly.