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States may tax iTunes, other digital downloads

by Scott Ames
5 replies
They are determined to kill the internet somehow:


States may tax iTunes, other digital downloads | The Iconoclast - politics, law, and technology - CNET News.com
#digital #downloads #itunes #states #tax
  • Profile picture of the author 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?
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    • Profile picture of the author Scott Ames
      That they will do for sure if they start taxing everything.
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    • Profile picture of the author Floyd Fisher
      Originally Posted by Dan C. Rinnert View Post

      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.
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      • Profile picture of the author LB
        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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