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Chairman Smith and Rep. Cohen Introduce Digital Goods Bill

Washington, D.C. — House Judiciary Committee Chairman Lamar Smith (R-Texas) and Representative Steve Cohen (D-Tenn.) today introduced legislation to protect consumers from unfair taxes on digital goods, like those purchased over the Internet or on a smartphone.  The Digital Goods and Services Tax Fairness Act of 2011 (H.R. 1860) ensures that digital goods are not taxed at a higher rate than their tangible counterparts.  For example, H.R. 1860 prevents taxation of mp3 and software downloads at a higher rate than the tax on music and software CDs.  The legislation makes sure that consumers do not suffer tax discrimination because they choose to purchase a good in digital rather than tangible form.

Senators Ron Wyden (D-Ore.) and John Thune (R-S.D.) today introduced companion legislation in the Senate.  Representatives Howard Coble (R-N.C.) and Alcee Hastings (D-Fla.) joined in cosponsoring H.R. 1860.

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