The state of New Jersey is suffering from a slight $4.5 billion debt problem. Macenstein is reporting that amidst a recent sales tax increase and a frantic session of checking the sofa for change, Governor Jon Corzine has expanded the list of items which can be taxed to include, amongst other things, iTunes Store purchases. This means that all iTS downloads will be taxed at the same recently raised 7% rate of other newly taxable items such as storage space, tanning, health club memberships and security alarms.Interestingly, Dr. Macenstein also reports that he'll be trying to work around the new charges by changing his virtual iTS address to another state. C'mon Dr. M, you need to pay up for your tanning and limousine luxuries just like everybody else.
Reader Comments (Page 1 of 3)
10-02-2006 @ 3:16PM
James B. said...
What's wrong with that? States have sales tax for a reason, and by buying things on the internet, you are bypassing that system. Rather than get upset when lawmakers try to get back funds that they deserve, under current law, the debate should be over sales tax itself.
In NY, I pay over 8.5% sales tax- it's a way of life here. In Alaska, there is not sales tax. It has to do with the respective economies of states.
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10-02-2006 @ 3:19PM
Jon said...
I like the way that the local government messed up so they tax the people. But then again, I'm not sure what else they could have done. Watch everyone move from New Jersey to another state.
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10-02-2006 @ 3:19PM
Jon said...
James B - how can the lawmakers deserve the money when it's their fault that the state is in debt?
P.S. In the UK we pay 17.5% so you're lucky.
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10-02-2006 @ 3:25PM
Brian N said...
The system needs change. These career politicians need to held more accountable! How about spending OUR money a LOT wiser. Instead of asking us for more because you suck at cash management! WE NEED CHANGE "Ventura for President"
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10-02-2006 @ 3:26PM
mroach said...
In Massachusetts we pay 5% sales tax and we have a surplus of over $1 billion. I do most of my shopping in tax free New Hampshire though. Probably the only benefit to living right over the border from NH.
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10-02-2006 @ 3:27PM
Ted Lee said...
Corzine never met a tax that he didn't like. As I've said before, people get exactly the government they deserve.
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10-02-2006 @ 3:29PM
Query said...
Did they tax other online music services, or are they just clueless?
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10-02-2006 @ 3:30PM
Ted Lee said...
Brian writes "These career politicians need to held more accountable!"...
Well, they are. Every four years they are held accountable. Most people are too busy/lazy/apathetic to care. Politicians like it that way. Pay no attention to what the well dressed man is doing with your tax dollars behind the curtain. The rich aren't paying their fair share! Global warming will kill us all! Save the whales!
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10-02-2006 @ 3:32PM
Thomas said...
Stop whining! We pay less taxes than any nation on the planet! So you have to pay sales tax on iTunes! boo-freakin-who! If you don't like it, move to Dafur!
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10-02-2006 @ 3:42PM
Sean Flanagan said...
Ted, I didn't deserve it. Nobody listened to me when I told them Corzine was going to do nothing but shove our state further into debt. He was campaigning on the same damn platform that every politician in NJ has been for the past few years: get rid of corruption. And yet, here we are without any more convictions and the same special interests driving up the state budget without consideration for the effects on the taxes levied on the citizens. I hear more and more people saying every day, "I have to get out of this state. I can't afford it any more."
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10-02-2006 @ 3:45PM
delerious said...
I thought I was already being taxed for downloads? Everytime I've checked my reciepts there have been taxings.
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10-02-2006 @ 3:46PM
consumer_q said...
Doesn't Apple already automagically add sales tax to the purchases?
I know that I have been paying taxes for itunes store purchases since I started using it - across two states - UT & WA.
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10-02-2006 @ 3:46PM
Bruce said...
The purpose of state sales tax is to help offset the burden to the state caused by commerence, and only local in-state commerence at that. AKA to pay for stuff like roads, which are used for commerence. Excuse me, but when was the last time that digital content put a burden on a state funded program??? I honestly would really like to know. The communication lines are all privetly owned. So I really don't feel it is the state's right to charge sales tax on digital content. As for health gyms, and tanning booths, well feel free to charge tax on those, because customers use the state roads to drive to them.
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10-02-2006 @ 3:56PM
Chris said...
All you guys that want to pay extra taxes.. donate as much as possible extra right now.. call your local State Tax commission. I'm sure they accept personal checks or even a visa.
Or better yet.. vote democrat and then you'll be forced to donate.
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10-02-2006 @ 3:58PM
Shackelford Web Design NJ said...
The tax isnt that bad... +$0.07 per song shouldn't be an issue, but my armored pinto Im ordering today will cost me!
(just kidding on the pinto).
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10-02-2006 @ 4:19PM
ms said...
Anti-tax Libertarians ... on the Internet? I, for one, am shocked!
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10-02-2006 @ 4:30PM
realityking said...
I don't really see your problem. Here in Germany we pay 16% on everything (exception are basic food [no candy], flowers, books and newspapers. That stuff is taxed with 7%). With the beginning of next year we're going to get 19%. Thoses taxes are from the federal goverment, so everybody pays the same.
We got a big debt here and we've got some challenges with our social systems. At the same time we send our Troops to more and more deployments. We just need the money.
Feel lucky with your
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10-02-2006 @ 4:31PM
Rich said...
"Stop whining! We pay less taxes than any nation on the planet! So you have to pay sales tax on iTunes! boo-freakin-who! If you don't like it, move to Dafur!"
Unless you're writing this from Australia, New Zealand, Mexico or Korea, you're totally off-base. Get your facts straight next time:
http://tinyurl.com/gp4u4
Please cite your sources that "we pay less taxes than any nation on the planet"
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10-02-2006 @ 4:56PM
Mike said...
Yeah but Jersey doesn't have a tax on gas, or at least they didn't. I'ld rather pay 1.06 for a song than add 30cents per gallon for gas.
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10-02-2006 @ 5:35PM
Tristan said...
@ 6
dittos
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