Despite the Obama administration’s efforts to close the gap between decreasing revenues and increasing expenditures, the federal deficit is expected to soar this year. Congress has been scrambling for ways to find extra dollars and one Congressman believes he’s found a way: tax online music.
It’s no wonder. The number of songs sold online is exploding; early in the year, Apple announced that it had sold more than 6 billion songs on iTunes. Most iTunes are sold for 99 cents each.
The federal proposal would impose a penny tax on all downloaded music in or originating from the US. Ostensibly, this would include all iTunes music since the company is based out of Cupertino, California.
After advising his colleagues to “do the math” (and summoning a page with a calculator), the Congressman noted that, on iTunes music alone, the penny tax would have raised $60 million, roughly the cost of 3 hours worth of funding to AIG (assuming a $170 billion bailout over the course of one year).
There was an immediate reaction from the music industry, claiming that a tax on music had the potential to suppress sales, including songs with actual merit. As a result of those concerns, an exemption from the tax has been proposed for performers which could prove that either their lyrics or original musical compositions provided “substantial and irreplaceable contributions to the music or art world.”
Performers Britney Spears and Mariah Carey immediately issued statements that they would not seek an exemption. Spears, speaking from her car, said, “I’m just country, y’all. I never meant to do art.” Congress agreed.
Bono, responding to the news, was certain that this was another way that the revenues from his music would avoid taxation. “Wow,” he reacted. “We didn’t even have to move to the Netherlands for this one.” The popular lead singer of the band U2 has faced criticism in recent years for his decision to move the band from Ireland to the Netherlands to avoid paying taxes (he claims that he did it just for the cheese).
Pop icons didn’t rule the day, however. Sen. Robert Byrd (D-WV) proposed an amendment to the bill which would exempt bluegrass and other folk music from the tax. Holding up his own album, US Senator Robert Byrd: Mountain Fiddler (County, 1978), as an example (I’m not making that up – Google it), Byrd noted that there are some classes of “the people’s music” which are in danger of disappearing. Adding a penny tax to tunes downloaded onto an already expensive iPod could make the music unaffordable, he argued. Senators, who remember (perhaps fondly) Byrd occasionally picking up a fiddle in the chambers were sympathetic to his case but otherwise unmoved.
Noted Sen. Arlen Specter (R-PA), exempting bluegrass music could lead the Senate down the slippery slope of having to carve out other exceptions. He said, “If we exempt one class of music, we’d have to exempt others,” pointing out that the Pennsylvania Polka would not have been saved under Sen. Byrd’s exemption. Specter was immediately criticized by conservatives by invoking a song with the lyrics “Gay with laughter happy as can be, They stop to have a beer.”
Sen. Jim DeMint (R-SC) argued that the bill didn’t go far enough. Taking the floor, he denounced online music as just adding to the entire immoral culture of rock and roll, saying:
“Even if this was not a law… I’m afraid I would have a lot of difficulty endorsing an enterprise which is as fraught with genuine peril as I believe this one to be. Besides the liquor and the drugs which always seem to accompany such an event the thing that distresses me even more… is the spiritual corruption that can be involved. These dances and this kind of music can be destructive, and, uh,… I’m afraid you’re going to find most of the people in our community are gonna agree with me on this.”
Sen. Evan Bayh (D-IN) stopped DeMint before he could go much further, calling him out for quoting the big Reverend Shaw Moore scene from the movie “Footloose.”
Of course, it was not unexpected that Apple voiced one of the loudest objections to the bill, claiming the company was being unfairly targeted simply for being cool. The company also noted that the penny tax would boost the cost of most iTunes to an even dollar, creating a serious shortage in the virtual “take a penny, leave a penny” jar.
Despite the controversy surrounding the bill, a vote is expected to take place later today, on April 1st, otherwise known as April Fool’s Day. Happy April Fool’s Day!
“I’m just country, y’all. I never meant to do art.” Congress agreed.
Haha, that is amusing. I was thinking “wow, congress is stupid” and I can definitely believe congress to be THAT stupid, until I see that line, which made me laugh. And then of course, the rest of it is funny too.
I like.
This tax is great so long as government doesn’t have to cut one penny from their budgets. I don’t know how the American people could survive budget cuts. What if uncle sam could only spend $2.5 trillion instead of $3.5 trillion? The world would end! Can you imagine all those dead beats out there that would have to find a job to live? Oh the humanity!
I do think they should double the tax for rap and cut it in half for country. Rap is linked to violence and crime which costs the tax payer more. Country, on the other hand, doesn’t promote criminal behavior and may even put enough people to sleep to prevent crime.
I like the perfume and cologne tax as well. Ever since they outlawed smoking in buildings, all we all have to smell is the stench coming off our fellow employees that passes for perfume. Since peoples’ tastes are different and most perfumes are obnoxious, a new tax would prohibit their use in the volumes that people are currently using and the cost would prohibit their use except for special occasions. That way all of our air would be less polluted.
Since we are talking about smelly air, I think that we should also charge a flatulence tax. Green house gases are emitted and our clean air is being corrupted. All we need are personal flow meters attached to everyone’s rear end and once a year we could go to the tax man and let him read our meters.
Love this. Especially the part about Byrd being a fiddler which I can’t imagine. And it is a shame about the Pennsylvania Polka.
I sure hope Congress doesn’t get wind of your post and impose this tax. Thanks for making us think and for explaining how things really work on the hill!
Geni,
That is – believe it or not – the one part of the post that IS TRUE! Byrd is an accomplished fiddler, has appeared on Hee Haw and has put out that album. Really!
I have to admit, Kelly, you got me on that one — although with all the stupid taxes (and tax breaks) being proposed on a daily basis, nothing should come as a surprise anymore. We’re reaching the point that caused Tom Lehrer to give up satire, because, he said, events were now arriving pre-satirized, a situation that reached its apotheosis the day Henry Kissinger was awarded the Nobel Peace Prize!
In any case, though, I went a year ahead on my iCal and put an entry for 4/1/10 that reads, “April Fools Day: Read No Blogs!” 😀
Urb