Digital Commerce Bigger Than Ever for Consumers, but Taxation Looms

Have you played “Words with Friends” yet on your smart phone or tablet? I am absolutely addicted to it! It’s similar to the old board game, ‘Scrabble’, and I have about a dozen games going on with different people at any one time. I think it’s a lot of fun to try and work with the groups of letters you’re given, but what would be a real nightmare would be trying to make sense of all the state and local taxes that I could be assessed for downloading an app such as that on my smart phone.

Apps, as well as items such as ringtones, ringbacks, e-books, are digital goods, and it’s never been easier to buy and download them. There are nearly two million apps alone, available today, so the digital marketplace is alive and well for all of us. We’re buying digital goods that are making our lives easier, more productive, and often, that are just plain fun to use.

What concerns me about digital goods is the way our tax codes are currently written. Today it’s possible that we consumers can be dinged with digital goods taxation by multiple jurisdictions. For example, it’s conceivable that you if were sitting in an airport in Boston, but actually paid for your phone in Rhode Island, and were buying a digital good from a company in California, you could be charged taxes on that purchase by all three jurisdictions! Seriously?

That’s why MyWireless.org is part of a growing coalition to help make sure that no matter where you are, when you hit the “purchase” button to buy a digital good, you understand exactly who’s taxing you for it, and that you are only paying taxes on these goods and services once!

It’s important to make sure wireless consumers are treated fairly and that we have a reasonable and sensible tax structure for such purchases. Fortunately the U.S. Congress agrees.

Take the time today to tell your U.S. Senators and Representative to support digital commerce tax fairness for you and all wireless consumers by co-sponsoring and passing S. 971 / H.R. 1860. It’s the…

hmm, let’s see… oh yes, I can make a word out of those letters… It’s only…

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