Wisconsin iTunes tax

Wisconsin Governor Jim Doyle would like iTunes customers to help pay for the state's budget shortfall, according to the Associated Press. Doyle has proposed a sales tax on a variety of digital downloads including music, movies, ringtones, electronic books and greeting cards. The state is short almost $600 million for the budget ending June 30th, while the next budget faces a deficit of $5.7 billion. Doyle claims the download tax would generate $11 million across the next two years.

A similar proposal presented two years ago did not make it past the committee level, according to WTN News. Proponents claim that the tax would increase fairness, bringing the same tax to Internet sources of music that a customer would typically pay if they bought a CD at a brick-and-mortar location. Some legislators stand in opposition, arguing that the state should not use the Internet as a source for tax funds, while online music retailers have claimed the tax would have a negative effect on their business.

by MacNN Staff