Digital Goods and Services Taxation
RECOMMENDATION 4.20: The federal government should investigate establishing a national framework for digital goods and services taxation.
The National Broadband Plan is focused on increasing beneficial use of the Internet, including e-commerce and new innovative business models. The current patchwork of state and local laws and regulations relating to taxation of digital goods and services (such as ringtones, digital music, etc.) may hinder new investment and business models. Entrepreneurs and small businesses in particular may lack the resources to understand and comply with the various tax regimes.
Recognizing that state and local governments pursue varying approaches to raising tax revenues, a national framework for digital goods and services taxation would reduce uncertainty and remove one barrier to online entrepreneurship and investment.
Using the twisted logic found only in government halls, this recommendation is listed under Broadband Competition And Innovation Policy. New taxes are being proposed to increase innovation. To increase competition.
The thing is, they’ll probably get it. Big government takes big money. Washington Times explains:
The Obama Era has become a protracted, nightmarish Whack-A-Mole game of tax increases and bureaucratic self-enlargement. In sector after sector of American life, another scheme to expand government and wrench more earnings from Americans’ pockets pops up.