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Download Fairness Coalition Reacts to Digital Goods and Services Tax Fairness Act CBO Score


Download Fairness Coalition Reacts to Digital Goods and Services Tax Fairness Act CBO Score


WASHINGTON – The following quote should be attributed to Sam Whitehorn, executive director of the Download Fairness Coalition:


“The Download Fairness Coalition believes that the Congressional Budget Office’s analysis of the Digital Goods and Services Tax Fairness Act – S.971 (Wyden/Thune) and H.R.1860 (Smith/Cohen) – is inconsistent with the intent of the legislation. The bill’s federal framework for digital goods taxation would still allow states to levy taxes on digital goods purchased by their citizens, while protecting consumers from being taxed by two or three separate jurisdictions. Because no framework exists for the digital economy, consumers face the threat of multiple and discriminatory taxes each time they download a song or ebook. For example, if a Virginia resident downloads a movie to watch at JFK Airport from a server in Texas, she could be hit with taxes from Virginia, New York and Texas on just one download.


“The coalition believes that this legislation is vital to protecting the digital economy without significantly disrupting state and local tax revenues. For example, this year alone, consumers are expected to download about 15 billion digital applications. And, with the release of the new iPhone 5, this number may increase even more if this innovative sector isn’t strangled by outdated tax policies. The Download Fairness Coalition looks forward to working with the CBO and members of Congress to pass legislation that will protect consumers and expand the digital economy.”


The Download Fairness Coalition is an organization that educates policymakers about the benefits of the digital economy. The organization is committed to policies that increase access to digital goods and services for all consumers. As an organization formed within the meaning ofsection 501(c)(4), contributions to the organization are not tax deductible as a charitable contribution for federal income tax purposes. For more information visit our web page at dfc01.wpengine.com.



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