House Science, Space and Technology Committee Chairman Rep. Lamar Smith (R-Texas) introduced a bipartisan bill on Friday that would prevent consumers from paying higher taxes on certain digital goods.
Smith and Rep. Steve Cohen (D-Tenn.) introduced the Digital Goods and Services Tax Fairness Act of 2013 to ensure that digital goods purchased on the Internet are not taxed at a higher rate than other goods and services.
Consumers are buying more digital goods today than ever before, including digital books, newspapers and magazines, Smith said.
“…But as technology advances, it is important that tax policies do not unfairly penalize consumers who choose to download digital goods rather than purchase their tangible counterparts,” Smith said. “This legislation promotes tax fairness and ensures that consumers are not discouraged from purchasing digital goods.”
The legislation would pertain to items like mp3, software and other digital downloads.
“Digital goods and services are quickly becoming a driving force in our national economy,” Cohen said. “We need to establish a uniform framework for the taxation of digital goods and services so consumers won’t be double-taxed. Our Digital Goods and Services Tax Fairness Act would accomplish such a goal.”
Sens. Ron Wyden (D-Ore.) and John Thune (R-S.D.) introduced companion legislation in the Senate earlier this year.