More taxes
Wisconsin's digital downloads to take on state sales tax
Spectator staff
Issue date: 3/2/09 Section: Editorial/Opinion
Please don't stop the music.
Gov. Jim Doyle approved imposing a 5 percent sales tax on digital downloads, which include music, ringtones and video games, according to a Feb. 26 Spectator article.
The tax, which will go in effect Oct. 1, is expected to raise about $10.9 million between 2009 and 2011, according to the article.
State Rep. Jeff Smith (D-Eau Claire) said he questioned how the state's government had the ability to monitor the different downloads.
Downloads from iTunes are 99 cents in all states, so it will be really difficult for the government to implement this tax unless it communicates with the company selling the songs.
It seems the government didn't think about the specifics of implementation or enforcement for the new tax.
Even though some people wouldn't mind paying the extra 5 percent because they support artists, there might also be people that won't be able to afford it.
The downloading rate might decrease, and it might be a bad idea, in theory, because it could increase illegal downloading.
Previously, Doyle increased taxes on cigarettes, but it had other benefits, such as decreasing lung cancer by encouraging people to stop smoking. Nevertheless, taxes for downloading music is an easy way to bring money to the state.
According to the Wisconsin Department of Revenue, the tax would serve to bring the state's tax law up to speed with the growing technology.
Only 15 other states and the District of Columbia have a similar law. This could turn into a common trend that will bring in a lot of money.
However it's surprising that the government didn't raise taxes over more tangible things in which taxes could be collected more easily.
People will now have to carefully decide whether or not they want to download something. The government's execution will be key to making this work.
Gov. Jim Doyle approved imposing a 5 percent sales tax on digital downloads, which include music, ringtones and video games, according to a Feb. 26 Spectator article.
The tax, which will go in effect Oct. 1, is expected to raise about $10.9 million between 2009 and 2011, according to the article.
State Rep. Jeff Smith (D-Eau Claire) said he questioned how the state's government had the ability to monitor the different downloads.
Downloads from iTunes are 99 cents in all states, so it will be really difficult for the government to implement this tax unless it communicates with the company selling the songs.
It seems the government didn't think about the specifics of implementation or enforcement for the new tax.
Even though some people wouldn't mind paying the extra 5 percent because they support artists, there might also be people that won't be able to afford it.
The downloading rate might decrease, and it might be a bad idea, in theory, because it could increase illegal downloading.
Previously, Doyle increased taxes on cigarettes, but it had other benefits, such as decreasing lung cancer by encouraging people to stop smoking. Nevertheless, taxes for downloading music is an easy way to bring money to the state.
According to the Wisconsin Department of Revenue, the tax would serve to bring the state's tax law up to speed with the growing technology.
Only 15 other states and the District of Columbia have a similar law. This could turn into a common trend that will bring in a lot of money.
However it's surprising that the government didn't raise taxes over more tangible things in which taxes could be collected more easily.
People will now have to carefully decide whether or not they want to download something. The government's execution will be key to making this work.
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