“Gov. David Paterson has proposed a so-called ‘iPod tax’ on downloaded music and entertainment services to help his state close a $15.4 billion budget deficit.
However, Apple Inc.’s products aren’t Paterson’s only targets. He has proposed 88 new fees and taxes that go far beyond, including on movie tickets, taxi rides, soda, beer, wine, cigars, massages, cable and satellite TV.
That’s just one aspect of Paterson’s proposed $121.1 billion budget released yesterday. The budget attempts to make state government leaner while relying on a wave of new taxes and fees that will be passed down to businesses.
The proposed budget is balanced and holds state spending just under the inflation rate. The budget also erases a combined $15.4 billion in budget gaps over the next 15 months.
Paterson revealed his budget amid the unrelenting shake-up on Wall Street that has already depleted state tax revenue and triggered tens of thousands of layoffs. Before this recession, the state’s financial services sector had produced 20 percent of state tax revenue through income taxes, year-end bonuses, real estate deals and initial public offerings on the stock markets.”
I hope all people in the internet and music industry will speak out against unfair, unrealistic, and economically damaging taxes such as this one. While we’re not located in New York, their recent taxation policies have been a source of concern for not only businesses in the music industry, but every business that has a website and sells online (see their sales tax law currently being fought by major online retailers: http://www.newrules.org/retail/efairny.html)
How Amazon and Overstock responded to New York: