Digital Tax

My iPod Family

I was reading this story of how states want to charge sales tax for digital products. I think it is the wrong way to act to just extend old tax standards to cover this situation. I live in San Jose, I am using my computer in Santa Clara right now, and Apple is in Cupertino. If I bought a song right now, whose sales tax would be charged. Is it different if I was using my computer in Pennsylvania at my parent's house?

I understand that states and local government need sales taxes. I understand that revenue is needed. Personally I want another five years of hands off the internet. Lets see which business models are really going to work. What are we going to do for Smart Phone Apps? How about services that need subscriptions? I think that need tax structures are needed for this to work well. I do not want to look at this tax in five years and see that we did it all wrong.


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