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News
New York Rejects “iPod Tax”
Friday, March 13th, 2009 at 7:12 AM - by Jeff Gamet
New York residents get to keep a little more cash for themselves now that Governor David Paterson has announced a proposed tax plan that would have targeted digital media downloads -- often called an "iPod tax" -- has been scrapped. The plan also included taxes on soft drinks, hair cuts, Broadway performances, and more, according to NY1 News.
The long list of proposed taxes is being replaced by US$1.3 billion in federal stimulus funds, but the state is still considering an income tax hike.
The idea of so called "iPod taxes" usually hits a nerve with consumers that feel like they are being nickeled and dimed by the government, and this case is no different. Governor Paterson commented that the tax "really has disturbed a lot of New Yorkers. They just see it as inconvenient and frustrating."
New York isn't the only state to consider targeting music downloads, and some states have enacted laws to collect taxes from digital media residents purchase and download. Since other states have already imposed similar taxes, New York residents shouldn't be surprised if a similar proposal surfaces some time down the road.
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