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Originally Posted by Dopedangel
Well in someways I do agree with them taxing downloads. As physical books sold their do provide some kind of work to the economy even if you buy from an online bookstore someone delivers it to you. Where as an ebook can be downloaded anywhere in the world and money goes out of a country's economy completely.
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Except taxes raise the prices of goods and services. It's basically like telling someone they have to donate a certain amount of money to the state based on how much they consume. So the money for digital products still leaves the country's economy, you're just now required to give up additional money that goes to the state.