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SB 223: Taxing the Internet?

by: Thomas

Thu Jan 31, 2008 at 16:50:39 PM EST


I know I'm supposed to be the stereotypical tax-lovin' liberal, but I won't pretend to be all that excited about this piece of legislation.
Legislation that would impose a sales tax on downloaded music, movies and audiobooks is picking up steam in the Indiana General Assembly.

Senate Bill 233, sponsored by Sen. Luke Kenley, passed the Senate this week and is headed to the House.

The legislation would bring Indiana into compliance with the multi-state streamlined sales tax agreement, which aims to make the nation's sales-tax laws uniform with the eventual goal of taxing all purchases made online.

I understand that a lot of revenue has been lost to online retailers, but at the same time, I find it hard to believe that levying a sales tax on purchases made online will end up helping anyone in the long run.

Perhaps I'm wrong, though. Thoughts?

Thomas :: SB 223: Taxing the Internet?
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Unenforcable (4.00 / 1)
How on earth would they enforce something like that?

You know what the REALLY bad news is?  Amazon.com is opening a distribution center in Munster.  Hoosiers will have to pay tax on all Amazon purchases.  Damn!  I need to find a new shopping site.  I LOVE Amazon.  I had to give the UPS guy a $50 Christmas tip because of all the deliveries he made last year.


This was my... (0.00 / 0)
...first instinct as well.

I had no idea about the Munster thing. Bummer.


[ Parent ]
It's a tough call (4.00 / 1)
As a musician and music business guy I am inclined to keep taxes out of the equation until the online downloads business grows larger. Right now 85% of music bought in this country is still bought on CD, so the tax benefits of taxing downloads is miniscule. On the other hand, as online purchasing increases, and as even neighborhood small businesses are starting to use web based credit card processing which could technically allow them to circumvent local sales taxes, a solution to the problem does need to be resolved.  

"All tyranny needs to gain a foothold is for people of good conscience to remain silent." - Thomas Jefferson


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