Do you pay for your online music?
For the rare minority who do, brace yourselves: your iTunes downloads may soon be taxed.
It may not be long before some states begin levying taxes on digital-media downloads, according to a recent article from CNETnews.com.
Although the Connecticut state legislature does not currently have plans to push the download tax, proposals are on the horizon in New Jersey, Vermont and Rhode Island, according to the article.
It cites the ever-expanding digital downloading market as the target for many state legislatures and tax officials looking to “boost government spending and curb budget shortfalls.”
But in an industry where so many people are still obtaining their music illegally, it seems questionable as to whether higher music prices for those who do abide by the rules is the best route.
Although most Fairfield students find ways around paying for their files, those who do pay are upset.
“I don’t think it’s fair at all that I might end up having to pay more to download music while almost everyone I know doesn’t pay at all,” said Lauren Wood ’08.
For Wood and other New Jersey residents who pay for their music, taxes on downloads could start as early as this fall. According to the article, “New Jersey Gov. Jon Corzine, a Democrat, proposed in his budget that ‘downloaded music and videos’ be taxed starting Oct. 1.”
Interest in taxing digital downloads has peaked in the past year because digital sales of music tripled, going from $400 million to $1.1 billion worldwide, according to the International Federation of the Phonographic Industry.
Many groups have expressed dissent about the issue, including Llewellyn Rockwell Jr., founder and president of a free-market think tank based in Alabama.
“It’s antiproductive and anticonsumer and hurts the business,” he said in the article.
According to the article, justification for the tax by states goes like this: “Buying a CD at Tower Records is taxed, the argument goes, so why should a stream of bits from iTunes or Walmart.com be tax free?”
Steve Curtis ’08, has a different perspective. “I think it’s unfair to the consumer because they pay money for music and the artist never gets it. There should be no government interjection in the music industry at all.”
Mikey DeStefano ’08 agreed.
“I don’t understand why the government has to be involved in this at all,” he said, “but as long as I continue to be unaffected by it, I guess I don’t mind.”
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