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States have figured out that people are spending money to buy digital “goods”, and naturally they want “their” share.
Including Mississippi, at least 18 states claim they have the authority to collect taxes on digital goods, and more are likely to join them.
On March 12, a bill was introduced in the North Carolina general assembly “to modernize the sales and use tax statutes by treating music, movies, books, and computer software that are delivered electronically the same as those that are purchased in a tangible medium.”
A digital goods tax measure was also introduced in the Minnesota House of Representatives in late March. The bill could raise the state more than $8.2 million in 2010 through 2013, according to the Minnesota Department of Revenue (PDF).
GST
As such there is some suppression of demand (because things cost more than they otherwise would have done), but there isn't the "I could afford that, wait no I can't when I add the tax" effect. Few if any consumers know or think about the "without GST" price.
Re sales tax on "digital goods", New Zealand has done this from the beginning. AFAICT the only reason that the USA put a temporary hold on doing so was because of the difficulty of dealing with the jurisdictional issues (whose sales tax applies, at what rate, etc). The net result is to provide a disincentive to purchase at "brick and mortar" stores since they have to charge sales tax, and the online stores do not. Which isn't an ideal thing in a recession either.
Ewen
Re: GST