A couple of years ago, consumers could download games and music - and avoid the sales tax from stores. Now, it doesn't make a difference whether you download or buy it from the store because of the digital download tax. But not everyone agrees with this tax, and this week, Ebay joined the debate.
Ebay sent out this email to its customers. They say the tax
increases the costs of downloading music, books, videos, and other content - which means that the buyers costs go up.
Ebay urges its customers to send a letter to their U-S Representative and Senators because the tax ground rules can't be changed without congressional action.
The Entertainment Consumers Association recently started a
campaign against the digital distribution tax. The group will be rallying its
members in Washington, Mississippi and New York to protest the proposed tax bills.
But others say, if you buy a CD in a store you pay taxes, so why not pay taxes when you buy it online? They say it's a matter of treating physical shopping and online shopping the same.
That's why more than 17 states have adopted this tax law, including Texas.