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  • Do You Like to Download From iTunes? Then Don't Move to Illinois!



    The tax man is coming! The tax man is coming!

    Apparently, one of the last remaining frontiers not totally subjected to government taxation and oversight is now on the radar of lawmakers in Illinois. Because of the state’s $13 billion budget shortfall, iPhone, iPod, and iPad owners who download content from iTunes are essentially being targeted to help Illinois recover from economic hardship.

    Illinois Governor Pat Quinn has a plan that involves taxing Illinois citizens every time they download a song or movie either to their computers or, more likely, to their mobile Apple device. While several other states have tinkered with similar plans, Illinois could effectively implement sales tax on all digital downloads.

    For the time being, the Illinois state sales tax is 6.25%. What would that mean for your downloads? Here's how the simple numbers add up. If the tax plan comes to fruition, anyone - for example - who downloads an album from iTunes for $10 will have to cough up another 62 cents in tax. Of course, if you're an avid movie downloader, be ready to cough up even more, since many top-notch flicks run $15. Governor Quinn's logic? It's time for taxing policies to catch up with technology.

    Needless to say, not a whole lot of Illinois residents have spoken in favor of the proposal, which according to the Gov., would merely generate an extra $7 million per year for the state. That will only leave the state with a budget shortfall of $12,993,000,000. Sounds like a great idea (insert sarcasm here).

    Image via AP
    This article was originally published in forum thread: Do You Like to Download From iTunes? Then Don't Move to Illinois! started by Michael Essany View original post
    Comments 59 Comments
    1. QWood13's Avatar
      QWood13 -
      Most of you who say I'm wrong are idiots. Most people are so uneducated that they don't know that we ARE indeed supposed to control the government. What they do, they must have our consent. It's called Consent of The Governed. Obviously none of you have paid attention when you were in Civics and Economics when you were in 8th Grade
    1. Caboose1408's Avatar
      Caboose1408 -
      I'm sticking with free music. I don't even remember voting for Pat Quinn or see signs about him.
    1. cmwade77's Avatar
      cmwade77 -
      Ok, honestly, I live in California and we have always been taxed on iTunes purchases (thanks to the fact that Apple has a physical presence in California).

      That being said, I don't think that it's right to tax in states that don't have a physical presence, there are logistical reasons that this won't work at a bare minimum.

      As for those that are saying we complain about being taxed too much, let's look at how much we really pay in taxes:
      Income Tax: 10%-80%
      Sale Tax (L.A. County in California): 9.75%
      Property Tax: 2%-10%
      Vehicle Registration: $100-$300 per year
      Then there are all sorts of other taxes:
      Estate Tax
      Luxury Tax
      "Sin" Tax (Taxes on cigarettes, Alcohol and such, since I don't use these things, I really don't care how much they are taxed though)

      In reality we do not get anywhere near what we pay into the system and could do a lot better. We pay more than enough taxes, states and the federal government need to learn how to make tough budget choices and cut spending.

      In all honesty though I don't buy too many things through iTunes (except a few Apps), most things we get as digital media come with physical media, I.E. bluray combo packs.
    1. nhawk124357's Avatar
      nhawk124357 -
      what ever happened to the billions of dollars in taxes they got for building the stadium for the olympics that we didn't even get?
    1. ericvw's Avatar
      ericvw -
      Maybe they are planning on people pirating. The government makes a ton of money when they catch people pirating music and movies. Maybe they figure this will lead to more money by taxing or going after the Pirates.
    1. jailwut wunnow's Avatar
      jailwut wunnow -
      In New Mexico it costs me $1.07 too for a .99 download. States are losing a ton of taxes through online purchases. I buy nearly everything online. I only get groceries (no tax) and soap, shampoo, etc. (taxable) in the store.

      When was the last time you went to the store to buy a DVD, Hard drive, pc, mac. Even shoes and clothes. This is all money paid out of state and not taxed generally. So if my shopping habits have changed and I never visit brick-n-mortars, should I never pay taxes on those items again? I don't think so.
    1. jaylen555's Avatar
      jaylen555 -
      Quote Originally Posted by purpl3_bug View Post
      Watch how many P2P program will be downloaded if this goes in affect. This will give another reason to download music from limewire and movies from torrent sites.
      thats what i was gonna say lol
    1. Cer0's Avatar
      Cer0 -
      People still use limewire?!
    1. pyromcr's Avatar
      pyromcr -
      i live in Illinois and thank god for pirate bay and apptrackr!
    1. JacquesChirac's Avatar
      JacquesChirac -
      psshh this article is giving a completely deceptive view of the issue at hand. 6.25% taxes is like nothing. Although I hate paying taxes as much as the next guy, illinois has some serious problems and I don't think a tiny itunes tax and fiscal shaving of the budget should cause any uproar.

      If I were to buy a CD, I'd have to pay taxes anyway and we don't see any uproar about that. I just hope apple lobbies don't bully stuff like this away because I have no doubt they'll bs about how this is not fair for people, when all their interested in is their ever-climbing profits.
    1. Cer0's Avatar
      Cer0 -
      But please stay off the talk about torrents and warez and cracked apps as it is not allowed.
    1. enjoimike69's Avatar
      enjoimike69 -
      wow this kinda sucks since i live in illinois.
    1. Nickaroni22's Avatar
      Nickaroni22 -
      This is a joke! Can u say P2P!!!
    1. DubbaCTrumpetMSU's Avatar
      DubbaCTrumpetMSU -
      In Texas, I'm already charged tax on downloads from iTunes...
    1. DarkOmen53's Avatar
      DarkOmen53 -
      These are some of the reasons why hackers exist. =/
    1. Cer0's Avatar
      Cer0 -
      MN also gets charged a tax with iTunes.
    1. dale2's Avatar
      dale2 -
      i get taxed already in texas
      $4.99 app comes out to like $5.34
    1. Co1d Night's Avatar
      Co1d Night -
      Humanity...prime example of weakness



    1. dzylon's Avatar
      dzylon -
      IMPLYING that's where the money actually goes. Welfare anyone?