Digital Goods And Services Tax Fairness Act

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Nowadays, technology is commonplace in everyday life of many families. People read books on digital readers, they listen to music on phones, and are even able to watch their favorite TV shows on their tablets through a popular service Netflix. They download apps to help with everything-cooking, running, driving, and entertaining. Digital goods and services are becoming more and more integrated into people's lives. There is a strange rule within the taxation of digital goods and services that sets up the potential for multiple taxes being applied to a single transaction from different states. Since there is no actual physical link for a digital good or service, it can be taxed based on several personal and commercial connections to the sale. People purchasing digital items such as music, videos, and software through their app store or online marketplace should be more aware and concerned about the chances that they can be subjected to multiple and duplicative taxes for a single transaction. In addition, some state laws and regulations also impose a higher tax rate on digital goods and services than on the actual physical product.…show more content…
The Digital Goods and Services Tax Fairness Act would end the imposition of multiple and duplicative taxes from various jurisdictions on a single digital download. The legislation also prohibits the imposition of taxes on digital goods at a higher rate than the actual physical
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