Vote 'YES' on S. 1364 | Council For Citizens Against Government Waste

Vote 'YES' on S. 1364

Letters to Officials

August 1, 2013           
U.S. Senate
Washington, D.C.  20510


Dear Senator,  
On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to support S. 1364, the Digital Goods Fairness Act of 2013.  

As consumers purchase increasing numbers of digital products and services such as music, movies, books, ringtones, mobile apps, and cloud computing services, the digital marketplace continues to expand.  Some states and localities look at this burgeoning industry as ripe for taxing when seeking new revenue streams for their increasingly tight budgets.  

Currently, 13 states tax digital goods by statute, and nine states and the District of Columbia tax digital goods by administrative rule.  Yet, there are no federal or state guidelines to define the source of digital products sold in interstate commerce, leaving a confusing landscape of tax rules, which could lead to consumers being taxed by multiple jurisdictions for the same transaction should they purchase a digital good, such as a song or e-book in another state.   

S. 1364, introduced on July 25, 2013 by Sens. Ron Wyden (D-Ore.) and John Thune (R-S.D.), would prevent duplicative and discriminatory taxes on digital goods and services.  The bill would establish a national framework for the growing digital marketplace and clarify federal rules relating to the taxation of digital goods and services.  The bill would also eliminate tax-related burdens on interstate commerce that could stifle the vital online market, and prevent consumers from being punished with double or even triple taxes on mp3s, videos, or the latest app, and clearly establish which jurisdiction has the right to tax digital transactions.  

The digital goods marketplace continues to grow and expand, taking the country into new frontiers of technological advances.  It is critical to provide clarity to the tax laws that govern these goods and services, as well as protect consumers from discriminatory or excessive taxes that would harm this critical, growing industry.


Tom Schatz
President, CCAGW

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