T Nation

Ipod Tax


pay a premium ? at least in New York. Gov. David Paterson, desperate for ways to narrow the projected (and ever-expanding) $15.4 billion budget deficit, yesterday proposed taxing just about anything he could to raise much-needed cash, including digital music downloads.

The so-called iPod tax was among a long list of 88 new or increased fees that the governor proposed to fill in the gaping money hole. If adopted, which is iffy, consumers would pay a 4 percent sales tax on downloaded music and other "digitally delivered entertainment services," the Associated Press reports.

But New Yorkers' iPods aren't all that will be hit. Among other things targeted for new or hiked taxes: gasoline, taxi rides, cable and satellite TV service, cigars, beer, movie and sports tickets, and health spa visits.

Paterson said his fiscal year 2009-10 budget proposal seeks to end a "digital property taxation loophole" by imposing state and local sales tax on purchases of prewritten software, digital audio, audio-visual and text files, digital photographs, games, and other electronically delivered entertainment services. For example, if lawmakers were to okay this version of the budget (which is unlikely), a book, song, CD, or DVD could be subject to sales tax no matter if it was bought at a brick and mortar store or downloaded online.


Putting a tax on downloaded music would force a lot more people to pirate it ... Good thinking Government! Hit another home-run


New York is a banana republic. So is California, for that matter.




Good thing no one has thought about just taxing bandwith use.


They can always move to Canada. Our taxes are really low :wink:


What I think is so ironic about all this is that if it happens the music industry will be hurt by the same tax and spend democrat party that they love so much (i.e. Clinton,Gore, Kerry, and Obama).


Wait... people pay for downloaded music!? Blasphemy!


Bleh. But at least the guy is doing his best to curb government waste and cut spending. Except he's being opposed by the State legislature at every turn.


Which guy?


Paterson. He's working hard to cut back on unecessary spending. And the state legislature is working hard to oppose his efforts.


Well thats good, at least someone is trying. Isnt it said that we cant afford the government that we have and yet ALOT of people want a bigger government???? You should read some Peter Schiff.