The Goverment Steps In, Taxes iPod
04.20.07 - 03:50pm
The government does like to take its cut of the pie too and it was only a matter of time before digital music downloads would be taxed. The more amazing thing is that it hasn’t happened till now! Iowa is the first to set the trend which if it passes you can guarantee other states won’t be far behind.
What’s happened is the Iowa Senate has just passed a bill called the “iPod tax”, which will allow the state to collect a 5% sales tax on all digital downloads such as iTunes songs, your new jammin’ cell phone ring and even software that is downloaded.
Basically the state says that if consumers have to pay a tax on CD’s they should pay a tax on digital downloads - after all just cause we can’t see it or feel it, it is right there on our computer or in our iPod.
The bill still has to go through the house but is almost for sure to be passed. It will bring in approximately $4 million to good ol’ Iowa state. At 5% tax that’s an awful lot of music Iowa is listening to. Just goes to show how big the “trend of digital” has become, and while we all bemoan taxes, having just come from visiting a third world country it is so fabulous to have decent roads!
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