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Finance

Congress mulls iTax cuts

A new proposal in the U.S. Congress is designed to curb many "iTaxes," or state taxes on iTunes and other digital purchases,.
Written by Declan McCullagh, Contributor on

A new proposal in the U.S. Congress is designed to curb many "iTaxes," or state taxes on iTunes and other digital purchases, which have popped up all over the country in the last three years. Currently, some 23 states and the District of Columbia levy sales taxes in one form or another on e-books, music, apps, ringtones, and other digital downloads.

The bill, sponsored by Reps. Rick Boucher (D-Va.) and Lamar Smith (R-Tex.), is part of a broader effort by technology firms and telecommunications providers to push back against what they view as tax agencies that are unreasonably singling out electronic purchases with unfair, expensive, and confusing rules.

Apple, AT&T, Electronic Arts, Cox Communications, Verizon, T-Mobile, and Time Warner Cable are among the companies that have endorsed the legislation, saying that "fast-paced technological and commercial changes are making it increasingly difficult, and in some cases nearly impossible" to comply with "confusing and conflicting" state tax laws.

For more on this story, read Congress weighs curbs on state 'iTaxes' on CNET News.

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