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New York state scuttles "iPod tax"

updated 05:05 pm EDT, Thu March 12, 2009

New York Scuttles iPod Tax

New York Governor David Paterson late yesterday announced that his government would scrub plans to institute a batch of taxes that would likely have raised the costs of digital music in the state. Among taxes that would have affected cable TV, movies and sports, the government is now scrapping plans for an informally-titled "iPod tax" that would have added an extra charge to downloads through iTunes and other online music stores.

The taxes had been part of a plan to make up for an exceptionally large spending deficit for 2009, which is unofficially believed to be as high as $14 billion. New York's proposed taxes would have covered only about $1.3 billion of this shortfall and now aren't considered necessary, as federal bailouts are expected to at least temporarily alleviate the need for a spending overrun.

It's not clear whether Paterson expects to avoid proposing such taxes in the future. The digital tax and others had contributed to a poor public image for the governor and had drawn criticism that it would further discourage the development of online business in New York. The state has previously opted to tax Amazon and other more conventional online retailers for sales where most of the US only applies taxes to sales where the company itself has a location.

by MacNN Staff



  1. Monstermind

    Joined: Dec 1969



    This dumb b****** Patterson is as bad as Spitzer. And they BOTH cheated on their wives.

  1. Monstermind

    Joined: Dec 1969


    Internet Tax

    "The state has previously opted to tax Amazon and other more conventional online retailers for sales where most of the US only applies taxes to sales where the company itself has a location."

    The Internet Tax: ALSO brought to you by Paterson, the liberal tax-and-spend loser.

  1. JackWebb

    Joined: Dec 1969


    Re: Internet Tax

    When Amazon basically put it to NY that they would simply stop selling to NY if they implemented that tax, that made me very proud of Amazon. Apple probably has that much influence too if they cared to use it.

    But they're going to get taxes out of us 500 other ways which will be more palatable to the masses such as taxing the rich companies like Amazon who passes it on to us or our energy through carbon taxes. Obviously this wasn't monetarily worth the bad publicity when the stealthier plans are all passing congress.

  1. moofpup

    Joined: Dec 1969



    Yeah because Conservatives have been so fiscally responsible!

  1. jdukovac

    Joined: Dec 1969



    Ok, so one of two things happenned here.

    1. The New York Governor has reached around, grabbed his hair, and pulled REALLY hard and disloged his head from his arse.

    2. Realized that having an iPod Tax is something that people do not want, feels simpathetic to people's plight and sided with the tax payers in saying no (EXTREAMLY unlikely).

    3. Apple told the Empire state that if they levied a tax on sales of digital content, they would simply stop selling to NY residents.

    I can't say for definite what happenned, and I hardely believe anything which would come out of CNN or FOX, or any other gossip, umm, I mean news agency regarding what happenned. All I know is that New Yorkers, at least it means one less tax for you, at least for now.

    If they do decide down the road to nail you folks with another BS tax like this one, you should simply get out your baseball bats, pitch forks, or what ever you have and go on down to the state house, and drag those tax creators out into a public square somewhere and "show" them what you think of their idiotic ideas (there is something to be said about the old days of dealing with morons like that).

  1. testudo

    Joined: Dec 1969



    First off, I know you all live in your "If its not Apple, it doesn't matter" world, but this wasn't an 'iPod tax'. It was a change to the tax code that would have affected many a things, one of which would have been digital downloads, which includes music. It also would have included software downloads. And, as the article states, cable TV.

    So stop pretending they were out after you.

  1. bjojade

    Joined: Dec 1969


    It's going to happen

    Sales tax is a reality. All local businesses collect sales tax for their state. The problem with no tax on internet purchases is that the local businesses get hurt because it encourages people to shop online. More people shopping online instead of local means more money leaves the local economy and less local tax dollars. This means other things WILL get taxed. It's happening everywhere.

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