Taxing Your Tunes
If David Paterson, governor of New York, has his way, those tunes that you love to download will now be taxable. The scary part is that other states may see this as an inroads to a whole new revenue stream, and additional taxes on life’s simple pleasures, such as music, may become more commonplace.
The proposed “iPod tax,” seeks to tax the sale of downloaded music and other “digitally delivered entertainment services” by 4 percent. Does that mean SDARS would apply as well? SDARS is “digitally delivered entertainment” after all. Where will HD radio, a “free” service fit into all of this, or will they get a free ride here as well?
If four percent on digital tunes seems outrageous, consider his proposed 18% tax on soda and other sugary drinks such as Red Bull! If the beverage is not at least 70 percent real fruit juice, be prepared to open your wallet. The governor’s theory is that the high tax on such beverages will help curb obesity. Seems a noble goal, but do we really need to legislate that? And what about music. Is digital music somehow bad for you, or is this simply yet another way to saddle citizens with more taxes?
If you are a fan of satellite radio, iPods, Zunes, etc., you will want to pay close attention to issues such as this and speak your mind. Otherwise, we may all wind up paying a “breathing tax” before long!
[Associated Press]
Position – Long Sirius XM
Get used to it. Government revenue as a percent of GDP is close to fifty percent in many European contries. Look it up. US is at 28 percent. I am not trying to take a political stance on this. I just think that is were we are heading. Higher taxes. And the current financial crisis isn’t helping any.
I am not sure I disagree with the Governor Paterson on this issue of a sales tax on downloaded music. If I walk into a store and buy a CD I have to pay sales tax. Why shouldn’t I have to pay a tax on the purchase if the digital information is downloaded. Both are permanent licenses to play the music in a non commercial environment.
Radio should not be taxed except to the point that the sale of the monthly service is taxed. There is no permanent license granted.
I could see them taxing more for the purchase of tunes. But on Sat/Rad, I am just listening, if they tax us for listening, then its crossing the line!! They would have to tax every single fm/am station in the nation.
As far as taxing the air you breathe, I heard of this years ago, and it would not surprise me one bit. The government has become to big and bloated, when does it end?
This reminds me of the movie, (Animal Farm). Things are getting a little to Orwellian for my liking.
Tyler,
Would you please post or write an article about the research note by Miller Tabak analyst. He has a short term target of $1 and a long term target of $3 for SIRI. The report came out yesterday.
Thanks in advance.
where is this article…any links?
Doesn’t iTunes already charge a tax? I thought I remembered seeing one applied to the bill I received from them after buying something. Are they talking about an additional tax on top of sales tax? Fukin government.
They finally get SOME people to start paying for music and now the taxes… I suppose it will be off to the pirate bay again…
I pay tax on my Sirius subscription in my state.
I just bought a game for my iphone.
Q1264 Amateur Surgeon, v1.0, Seller: Turner Broadcasting System, Inc. (17+)
Report a Problem $4.99
Subtotal: $4.99
Tax: $0.41
Order Total: $5.40
They definately charge for games already…
Right. I am pretty sure they charge sales tax for all sales thru iTunes.
Holy**** ! I just saw a SIRI-XM commercial!!!