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Congressman Cohen, Chairman Lamar Smith Introduce Bipartisan Bill To Protect Consumers From Unfair Taxes On Digital Goods

March 27, 2015

[WASHINGTON, DC] – Congressman Steve Cohen (TN-09) joined Science, Space, and Technology Committee Chairman Lamar Smith (TX-21) this week to introduce legislation that would protect consumers from unfair taxes on digital goods, like those purchased over the Internet or on smartphones. The Digital Goods and Services Tax Fairness Act of 2015, H.R. 1643, ensures that digital goods are not taxed at a higher rate than their tangible counterparts as well as ensures that consumers do not suffer tax discrimination because they choose to purchase a good in digital rather than tangible form.

“Digital goods and services are quickly becoming a driving force in our national economy,”said Congressman Cohen.“We should ensure that consumers aren’t discouraged from purchasing digital goods because of high taxes, and our Digital Goods and Services Tax Fairness Act would help accomplish such a goal.”

Chairman Smith said:“In our modern economy, more and more consumers are buying digital goods and services rather than tangible items. While books are still sold in stores across the country, readers can now download hundreds of digital books, newspapers and magazines instantaneously with the click of a mouse from the comfort of their home. 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. This legislation promotes tax fairness and ensures that consumers are not discouraged from purchasing digital goods.”

Representatives Steve Chabot (R-Ohio) and Trent Franks (R-Arizona) also cosponsored this legislation. Companion legislation was introduced in the Senate earlier this week by Senators John Thune (R-S.D.) and Ron Wyden (D-Ore.).