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Tuesday, October 03, 2006

New Jersey law to tax iTunes sales

I don't like Apple (the company) because of their proprietary "own it all" nature. TheWife doesn't care, and currently purchases music from iTunes along with several other companies. I guess it really doesn't matter, and I am sure all downloadable music companies will be involved, but they specifically mention iTunes when in the recent article about New Jersey law to tax iTunes sales.

There are certain things that I agree with. With its $45+ billion dollars in debt, that New Jersey needs to start doing things to whittle that down. And with our property taxes being some of the highest in the country, they need to look elsewhere. Personally I support that if they have to raise taxes, to raise them on non-essentials.

However, Internet sales fall under Inter-State Commerce, which makes it (in most cases) prohibited from taxing. If Gov. Corzine manages to find a way to slip this through, it is going to be a damaging thing. First of course for consumers that will have to pay the taxes. (You can be sure that if this gets through, every State is going to make a beeline to this cashflow. ) But just as importantly to businesses, particularly small one, and even people who sell things on places like eBay, as you will now not only have to work as a tax collector, you will need to know the rates, rules, and proceedures from every State that you sell (or even potentially sell) products to. And that can be a real mess.

I still think Gov. Corzine was a better option than the man he defeated. But 10 months in office, and he has come with some real clunkers that are not endearing him to anybody. I have always assumed that he had long term aspirations on running for President, but if he is going to just keep throwing things out there just to "see what sticks" he won't stand a chance.

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