Quote:
Originally Posted by allanuk
http://www.xbiz.com/news/105056
By Tod Hunter
Saturday, Feb 21, 2009 Text size:
MADISON, Wisc. ? Wisconsin lawmakers have approved a bill requiring a five-percent sales tax on Internet downloads including adult content. The tax goes into effect Oct. 1.
"This is not a straightforward issue and it's going to take some time to have the system up and running," Wisconsin House Majority Leader Tom Nelson said.
A representative with the Illinois Department of Revenue told reporters that Illinois looked into taxing the web as well, but opted out because of the difficulty of taxing businesses that don't have physical locations in the state.
Wisconsin Gov. Jim Doyle has said that the tax ? music, E-books, greeting cards and ring tones ? will generate about $11 million over the next two years. The state is short almost $600 million for the budget ending June 30, and the next budget faces a deficit of $5.7 billion.
A similar proposal presented two years ago did not make it out of committee.
|
I like to know where these guys get their figures. They assume people will still download at the same rate. For example my state has a 8.25% sale tax on food Kentucky has ZERO % sales tax on food. Guess where people that live near the border with Kentucky go shopping for groceries? That's right Kentucky. How much money are Tennessee business losing because TN residents are shopping in KY? How much business tax revenue is the state losing because of this?
Seriously what is stopping someone from wisconsin from asking a friend that lives in another state to download songs from itunes or whatever then sending them to him so they don't have to pay sales tax? States are like the media companies, they need to learn that the old ways won't work anymore and they need to find new ways to bring in revenue.