Taxing Downloaded Music

When you buy a CD at a store, you pay taxes on it, so why are people so shocked that New Jersey has decided to institute a 7% tax for online purchases and downloaded music and videos.

This means iTunes, Napster and other online stores are going to get a bit more expensive. Don't be surprised if other places including Canada go ahead and do something similar. No idea how they plan on enforcing these new taxes yet, but keep an eye on this stuff.

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