Jensen Criticizes 'iPod tax' Again
Department of Revenue Secretary Mike Morgan led off a full day of Joint Finance agency briefings, testifying before a confrontational committee critical of what committee members allege are new taxes.
Rep. Scott Jensen in particular took Morgan to task for what he has dubbed the "iPod tax." "You have to admit this is a new tax," Jensen said. Jensen, citing current compliance rates for tax collection on Internet and out-of-state purchases, predicted the state would not come near to collecting the $3.2 million projected by the department.
Jensen confided he complies with paying tax on his wife's out-of-state and Internet purchases, to which Morgan replied, "Let me congratulate you on your excellent decision on marriage."
Morgan said the digital goods tax collection initiative levels the playing field that is now tilted toward Internet-based retailers and said the collections are merely a codification of existing taxes. "We are not trying to change the law," he said.
"I assume you are trying to change the law," Jensen shot back. "That's why you put statutory language in the (budget) document."
Jensen also grilled the secretary over a tax on Internet access, which he says would put Wisconsin at a competitive disadvantage.
