Wisconsin Passes Digital Download Tax 327
McGruber writes with news that the State of Wisconsin has passed legislation to extend sales tax to digital downloads. The new law will go into effect on October 1st. Estimates suggest that the 5% tax on "downloads of music, games, books, ring tones and other video entertainment" will bring in $6.7 million annually. "[Wisconsin Governor Jim Doyle] has been fighting for the change for years. He and other state officials say it is a matter of fairness: Internet vendors shouldn't have a tax-exempt advantage over Wisconsin's brick-and-mortar retail stores." Similar legislation has been proposed in North Carolina, and we've previously discussed New York's foray into taxing sales made online in addition to downloaded purchases.
I live in WI, and I say this sucks (Score:5, Informative)
Re:Why now? (Score:3, Informative)
Re:Double tax? (Score:3, Informative)
AFAIK, gift cards/certificates/checks, etc, are NOT initially taxed, precisely /because/ the tax is paid when they're redeemed. I know that's the way it has been around here, anyway. They're handled straight across. A five dollar bill gets you a five dollar gift check/card/certificate/whatever.
It's also worth noting that the business doesn't book the sale of the gift check/card/certificate, either. It's considered the equivalent of a cash for cash transaction, a five dollar bill for five ones, or whatever. The sale is booked only when the gift is redeemed, or in areas where it can expire or if there are service fees attached (as there are to gift Visa/MC cards most of the time), at the time of expiration or charge of said fees.
So no double taxation.
Re:economy (Score:4, Informative)
negative ghostrider - a tax involves a middleman, who involves an ever growing support structure, all of whom must be paid via tax, and who does not make decisions based on a profit perspective, but on a position of influencing a vote for him. That which is not profitable but is paid for regardless because of edict will not have competitive pressure for improvement. It will eventually cost more than an alternative that required continuous improvement to survive in a competitive environment. Anything that costs more than is necessary, espcially that which is legislated to exist and so has little incentive to be withdrawn because *voters* become dependent on it, draws away the ability to create and improve everything else, from stem cells to flying cars.
Tax is not zero sum - it is a negative use of money. It should be kept to those minimal actions necessary for the survival of a society - like the Constitution envisioned.
Re:How do they enforce this? (Score:5, Informative)
If you get a refund, you'll get exactly what you would've have spent when you initially paid your taxes and had withholding's taken out. In other words, it's like the government was saving your money for you without paying interest like a bank would do.
If, however, you owe money, that means you got to keep it in the bank or put it into some kind of investment, where it could grow grow. When it comes time to pay owed taxes, whatever interest or growth that money accrued is yours.
Re:That's it -we're fucked. (Score:3, Informative)
http://www.govtrack.us/congress/bill.xpd?bill=s111-436 [govtrack.us]
http://www.opencongress.org/bill/111-h1076/show [opencongress.org]
Re:Not too hard to ditch... (Score:3, Informative)
Re:How do they enforce this? (Score:4, Informative)
Large businesses like Apple or Amazon, which do such a large amount of online business, will probably end up stopping all operations in that state.
Yeah right. Apple's going to close down all its retail stores in a state (which bring in plenty of revenue) because of a tax on digital downloads. Economics isn't your strong point, is it?
My state has had a sale tax law for years (Score:1, Informative)
My state has had a sale tax law for years. Whenever I buy anything and don't pay tax in the other location, I'm required by state law to pay the sales tax in my state with my annual tax forms.
I never do. Screw them.
I contacted my state treasurer concerning penalties for late tax payments - I pay all at the end, not quarterly because it is more convenient and I don't like loaning them money. Anyway, they said not to worry about the penalties because they had no way to determine I actually owned any, nor any simple way for them to calculate them for me easily. I've been checking a box on my state returns for them to calculate the penalty for the last 8 years. They never have.
I'm damned if I'll help some organization that is that screwed up waste more of my money.
Re:"FAIR"??? What's fair about taxes? (Score:3, Informative)
BZZZZT.
Tax rates:
Germany: 36.2%
USA: 28.3%
Iceland: 41.4%
Your entire post is based on lies. That 'gapminder' site has its numbers all wrong, it massively underestimates tax levels. Maybe it's only counting national taxes. You're better off with the OECD numbers that count taxation at all levels of government.
Re:How do they enforce this? (Score:3, Informative)
Yes really. I get fined almost every year. Most years it's trivial, like $25, but last year it was a $105 fine. They must have rewrote the rules in order to catch people like me.
The IRS expects you to pay every week or file quarterly payments, and to be under $1000 owed on April 15. If you don't comply, you get punished.
Re:"FAIR"??? What's fair about taxes? (Score:3, Informative)