States may tax iTunes, other digital downloads

Scott Ames · 08-13-2008, 03:17 PM

They are determined to kill the internet somehow:

States may tax iTunes, other digital downloads | The Iconoclast - politics, law, and technology - CNET News.com

Dan C. Rinnert · 08-13-2008, 03:54 PM

No, they're just determined to squeeze out the little guy from making money online. The big corporations won't have as many problems finding the resources to collect sales taxes from across the country. But, the small guy is the one the will be squeezed out because of the additional burden of keeping track of all that stuff. In Ohio, we have 88 counties and more tax districts than that, and, for in-state sales, we need to collect and keep track of the appropriate sales tax for purchases made in each tax district. On top of that, they reduced the percentage of compensation the merchant gets for collecting the sales taxes. Can't imagine the nightmare it will be when the so-called "Streamlined" sales tax system goes nationwide. If Ohio has over 88 separate tax districts, how many will we have to keep track of when all 50 states get in on this?

Didn't the Founding Fathers revolt over far less taxes than what we have today?

Scott Ames · 08-13-2008, 04:35 PM

That they will do for sure if they start taxing everything.

Floyd Fisher · 08-13-2008, 11:43 PM

Quote:

Originally Posted by Dan C. Rinnert

No, they're just determined to squeeze out the little guy from making money online. The big corporations won't have as many problems finding the resources to collect sales taxes from across the country. But, the small guy is the one the will be squeezed out because of the additional burden of keeping track of all that stuff. In Ohio, we have 88 counties and more tax districts than that, and, for in-state sales, we need to collect and keep track of the appropriate sales tax for purchases made in each tax district. On top of that, they reduced the percentage of compensation the merchant gets for collecting the sales taxes. Can't imagine the nightmare it will be when the so-called "Streamlined" sales tax system goes nationwide. If Ohio has over 88 separate tax districts, how many will we have to keep track of when all 50 states get in on this?

Didn't the Founding Fathers revolt over far less taxes than what we have today?

Before you get out your pitchfork, I've got a clue for you.

Clickbank has been collecting it for awhile now. I've seen it on a couple of products I've bought through them lately.

As long as they are collecting it, I don't have a damned thing to worry about. I don't have to account for it, I don't have to send it off to the state, I don't even need a tax ID from the state.

You should take that as a hint...and maybe do the same.

LB · 08-14-2008, 12:12 AM

The issue wouldn't be Clickbank and the like but when you take your own payments through Paypal etc.

Paypal does not collect sales tax and that means you'll need to go through the hassle of getting setup through your state and collecting, reporting and remitting your own.

I've done it with physical products and it can become a major pain in the ass. A lot more record-keeping and potential for violations if one is not careful.

peteinoz · 08-14-2008, 01:15 AM

Its entirely possible for your IPN to handle all this for you.. I do it for GST here in AU

08-13-2008, 03:17 PM	#1
Scott Ames Senior Warrior Member War Room Member Join Date: Jun 2006 Location: West of Rockies Posts: 5,556 Thanks: 363 Thanked 665 Times in 325 Posts	States may tax iTunes, other digital downloads They are determined to kill the internet somehow: States may tax iTunes, other digital downloads \| The Iconoclast - politics, law, and technology - CNET News.com
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08-13-2008, 03:54 PM	#2
Dan C. Rinnert I have a lame list. War Room Member Join Date: Jul 2008 Location: One Second into the Future Posts: 4,256 Blog Entries: 1 Thanks: 811 Thanked 2,177 Times in 1,003 Posts Social Networking	No, they're just determined to squeeze out the little guy from making money online. The big corporations won't have as many problems finding the resources to collect sales taxes from across the country. But, the small guy is the one the will be squeezed out because of the additional burden of keeping track of all that stuff. In Ohio, we have 88 counties and more tax districts than that, and, for in-state sales, we need to collect and keep track of the appropriate sales tax for purchases made in each tax district. On top of that, they reduced the percentage of compensation the merchant gets for collecting the sales taxes. Can't imagine the nightmare it will be when the so-called "Streamlined" sales tax system goes nationwide. If Ohio has over 88 separate tax districts, how many will we have to keep track of when all 50 states get in on this? Didn't the Founding Fathers revolt over far less taxes than what we have today?
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08-13-2008, 04:35 PM	#3
Scott Ames Senior Warrior Member War Room Member Join Date: Jun 2006 Location: West of Rockies Posts: 5,556 Thanks: 363 Thanked 665 Times in 325 Posts	That they will do for sure if they start taxing everything.
	Action is the foundational key to all success. - Pablo Picasso

08-14-2008, 12:12 AM	#5
LB Original Warrior War Room Member Join Date: Oct 2003 Location: In the forest. Posts: 2,894 Thanks: 256 Thanked 461 Times in 202 Posts	The issue wouldn't be Clickbank and the like but when you take your own payments through Paypal etc. Paypal does not collect sales tax and that means you'll need to go through the hassle of getting setup through your state and collecting, reporting and remitting your own. I've done it with physical products and it can become a major pain in the ass. A lot more record-keeping and potential for violations if one is not careful.
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08-14-2008, 01:15 AM	#6
peteinoz Brute Force SEO War Room Member Join Date: Jul 2005 Location: Gold Coast, , Australia. Posts: 3,271 Blog Entries: 6 Thanks: 8 Thanked 50 Times in 19 Posts Social Networking	Its entirely possible for your IPN to handle all this for you.. I do it for GST here in AU
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