(Jacob Turcotte)
New York’s proposed ‘iTunes tax’
By Chris Gaylord | 12.17.08
New York State is pressed for cash, and its governor is eyeing iTunes hungrily.
With the Dow having lost one-third of its value this year, New York expects taxes from Wall Street to fall short. Gov. David Paterson (D), the recent victim of a Saturday Night Live lampooning, wants to head off the expected $15.4 billion budget gap with a laundry list of new taxes and fees.
The 88 proposed hikes include expanded levies on clothing, taxis, movie tickets, and “digitally delivered entertainment services.”
That last item, if passed, would make New York the newest state to impose a so-called “iTunes tax.” Currently, 17 states and the District of Columbia have similar laws in place, according to CNET. Politicians in Massachusetts, Wyoming, and Washington are weighing their own bills.
Governor Paterson’s plan calls for a 4 percent tax on music or movies downloaded within New York. The fee would hit at the time of purchase, much like sales taxes in brick-and-mortar stores.
The proposal doesn’t target iTunes specifically, but Apple is America’s largest music retailer – online or otherwise – and therefore will probably be the company sending the most cash into New York’s coffers. Ebooks from Amazon and downloadable games from Valve could also generate revenue for New York, depending on the final wording of the law.
Apple did not respond to requests for a comment.
<< Apple ripe for Macworld Expo exit | MainComments
2. walliat kahn | 12.17.08
Taxation is a liberals answer to all ills. Never think about cut backs!
Why not put a tax upon tax itself!
Glory days are here agian for all Democrats/Liberals.
Enjoy!
3. Thomas F. Houlihan | 12.17.08
The republicans in the US Congress have their war on the middle class taxpayer, now the NYS Governor is declaring war on the working class. The only people who can enjoy a decent level of comfort in NYS are the rich and those on welfare. STOP IT!
5. Brandon | 12.17.08
Brilliant, just brilliant. Millions of americans are out of work and we’re in a depression - so what is our great government doing? Raise taxes! Oh that will definitely pull us right out of a recession.
“An unlimited power to tax involves, necessarily, a power to destroy; because there is a limit beyond which no institution and no property can bear taxation.” -John Marshall
“If taxes are laid upon us without our having a legal representation where they are laid, we are reduced from the character of free subjects to the state of tributary slaves.” -Samuel Adams
6. minion | 12.17.08
I know a few greedy CEO’s that have some cash they could put up instead of us hard-working slaves. Let’s focus on recoving money from the corporate criminals that caused this tax shortage instead of further beating up the ultimate victims with more taxes. Why isn’t this obvious?
7. Victor | 12.17.08
Welcome to the Obama nation. You wanted change? Well he is going to get all of ours. Work, why? Buy, why? Start a business, why? Ever read 1984?
8. John Smith | 12.17.08
He also is increasing welfare spending. Cutting education, taxing everything he can think of and increasing welfare at a time of a huge budget short fall.
10. G Monroe | 12.17.08
This is a 4-cent sales tax on the sale of 99-cent digital merchandise. I don’t see what the big deal is. These small increases help fill gaps in the public service department (schools, social security, etc.). I’d be willing to pay a slightly higher tax for more opportunity.
11. R. Smith | 12.17.08
How can any legislator justify ANY new taxes in New York State. We can barely survive the existing Taxes!!!!
12. vs | 12.17.08
c’mon Christians … render to Caesar what’s Caesar’s … isn’t that Biblical … also help the poor, NY stock market friends. It’s about time NY sucked some wind for awhile. The polish is off the apple and its time to move on. Ridiculous “state” of affairs. Hope California gets it too!!!
13. Brie Cheeselog | 12.17.08
I wonder…if “we” hadn’t spent most of a trillion on the fake Iraq war (and the republican types who created it and profit from it), and (coming up) most of a trillion on the bail-out (and the republican types who created it and profit from it) if we would really need to generate any new taxes. As sad as it is to see the sheep who would blame the liberals for the mess we’re in, equally as strange to me is that most folks don’t seem to think of this all as being orchestrated. Any college MBA student knows that the house of cards approach to buy, buy, buy on credit based on greed will bring big growth and then collapse, but the folks who set this up get the profit going up and going down, with the middle class herd quietly footing the bill. WTC 7, constantly stirring up trouble in the Middle East, taxpayers “bailing out” rich banking outfits, etc., etc., these are not accidents.
14. Jesus Was A Pauper | 12.17.08
How did we get to this point, for those criticizing Obama, a president elect who has yet to preside, look at what the past 8 years of tax cuts have brought.
Idiots. Republicans wallowing in the filth of their own willful ignorance. Democrats are doing little better with middle class and working class taxes. Idiots to the left of me, idiots to the right of me. And the wealthy sitting pretty feasting on caviar and wiping their mouths with silk.
Close hedgefund, offshore loopholes, those individuals making over a million dollars a year should pay their price to play, including those who are making their millions from interest payments and dividends.
15. Tiki Mon | 12.17.08
Let me turn around the question liberals always use to dismiss the idea of tax cuts: “How are we going to pay for this?” Government takes our money for the poorest of excuses, but screams bloody murder if you try to get some back.
NO NEW TAXES. How about those idiots learn to live on their already-crippling tax-based allowance? Just because they’ve blown billions does not mean they should steal more money from those of us trying to live within our means.
Still more reasons not to live in New York…
16. Dave | 12.17.08
tax the corporation not the consumer, direct effect = neglect affect
?????
Hate to tell you coroporations don’t pay taxes. It’s just an expense passed onto the consumer.
18. Jah | 12.17.08
what a bunch of alarmist nerds… this is the GOVENOR of NEW YORK, not OBAMA that is proposing this tax.
This is because of a more fundamental problem: how do states tax goods bought from other states but used in their jurisdiction? In California you’re asked on your state income taxes “Did you buy anything from out of state to be used in California?” so they can tax it and of course everyone says no (this law is actually very old, originally designed to target mail order)! So we need a federal law that conforms these state laws to make interstate commerce and taxation fair and equitable for everyone.
19. don v | 12.17.08
as a ohio state retired employee OF 25 YEARS, and 20 years payed into SS IN THE PRIVATE SECTOR. my ss check is less 60% about a 6 to 700.00 dollar loss each month,they said i was double dipping because i draw a state pension, this is due to RONNIE,S red ink in the 1980s, remember him, of course them who double dip with a company pension were not effected, forget NY state tax,es you have a lots of bush red ink to pay. MARK MY WORD.
20. voiceofreason | 12.17.08
im sorry but if you are complaining about a tax on itunes or digitally delivered entertainment that is going to hurt you financially, then maybe you shouldnt own an ipod or be buying music in the first place.
21. Rob in Warwick, NY | 12.17.08
This democrat will NEVER vote for this friggin idiot. I have absolutely had it with these politicians who dont understand, if you dont have the money, then you must cut back.
In these economic hard time, the gov wants to make things even tougher by taking more of our money.
18% tax in sugared soda…….to fight obesity. what a friggin crock. It’s to fill the coffers, and that’s it.
I don’t care who runs against him, he’s got my vote.
22. Dennis | 12.17.08
Have they considered the “air we breathe tax”?
Get used to more tax and spend.
The change is starting.
23. Chuck | 12.17.08
Federal law and the federal courts have all been very clear: you cannot tax an online purchase made in your state unless the business already operates brick & mortar stores in your state. Apples does operate stores in NY, therefore iTunes purchases qualify for NY state taxes. On the other hand, online stores such as Amazon.com does not have a physical presence in NY, and attempts by the state of NY to get Amazon.com to pay NY state taxes has been thwarted by federal courts. The likely outcome will be that many online retailers bullied by the state of NY will just opt not to sell to NY residents rather than challenge the state of NY in court. Sadly, you cannot, in America, sue politicians for knowingly passing illegal legislation — in my opinion, this should be illegal and count as contempt.
24. get serious | 12.17.08
Corporations do NOT pay taxes! They increase prices to consumers and pass that along to Big Brother as taxes. When government places a “tax” on a business, that business has a few choices: lay off or decrease employment, move to cheaper employees (go overseas), cheapen their goods, or pass the fees along to consumers. Think the big dogs are going to give up their millions? No, they’ll fire some schlep, or raise prices. The consumer always loses!
25. n. farly | 12.17.08
Did I miss something or did the greedy governor? I thought there was federal prohibition on taxing internet business.
26. DONT TREAD ON ME | 12.17.08
Tax corporations and they will pass it on to you (consumer prices). Tax consumers’ income and they have no incentive to work. Tax spending and watch as we all spend less. Stupidity. The only way for this country to recover: lower taxes of every kind for every man, woman, child and corporation, along with massive spending cuts. Else we permanently cede our status as a great and prosperous country to those with leaders catching on. NY’s governor is not in that category.
27. Adam Smith | 12.17.08
Evil taxes … let’s just get rid of them.
Oh wait, you want the police to protect things? A fire department to save your house? Roads maintained? Your sewage taken away?
28. Bocefus Jamison | 12.17.08
It’s never as easy as just cutting spending. The big catch here is that NOT SPENDING is what is causing the economic problems to begin with.
If you just go and cut 15 billion out of spending, not only do you hurt the people that are using the services, but you also cut out 15 billion worth of spending. Not to mention the flood of people added to the unemployed.
We may not like government spending, but it is JUST as important to the economy as corporate and personal spending. To the economy, spending is spending, and it’s what drives it.
29. J. Pickens | 12.17.08
A tax on corporations is the same as a tax on the people. Corporations are fictional entities. Any taxes they pay are passed on to the consumers who buy the products they produce in the form of higher prices or to the shareholders that own the corporation in the form of lower returns. You can’t tax a corporation.
30. resonse | 12.17.08
A tax on corporations is just a tax on the people. Corporations DO NOT PAY TAXES, the consumer does. They pass those on, when will people realize this? And talk about the rich being comfortable they already contibute more than 70 percent of the taxes paid for the country. How much more do you want them to pay? The real solution government STOP SPENDING!
31. Drew S | 12.17.08
What did we expect?
Pro-taxpayer, pro-consumer, business friendly policies?
NYS is NYS’s largest employer. Whenever there’s a budget shortfall, anything that moves gets taxed, praticularly tobacco or anything remotely seen as a luxury, or vice.
NYC is rich enough to weather this storm, but Patterson’s death of 817 cuts will be particularly tough on the upstate, Rust-Belt economies.
32. Chris | 12.17.08
“Welcome to the Obama nation. You wanted change? Well he is going to get all of ours. Work, why? Buy, why? Start a business, why? Ever read 1984?”
I fail to see how this in any way has anything to do with President-Elect Obama. He’s not president yet, nor is he involved with the affairs of New York state.
34. jussayin | 12.17.08
What utter stupidty! Obama is not creating an iTunes tax in New York. It is the state legislators!
35. jaime | 12.17.08
greedy conservative jerks. Apple should stop selling music to people in NY state.
That would stop them cold.
36. jed | 12.17.08
Why not put a tax upon tax itself!
They do. Ever have to claim a tax refund as income?
37. dave | 12.17.08
Isn’t it already hard enough to get people to pay for downloads in the first place?
38. Wilber loves NY | 12.17.08
I love watching how stupid NY is… haha… This will help you idiots pay for your mulitmillion dollar baseball stadium. classic. I wonder if these liberal idiots in NY will ever understand they asked for that. They are the patriots right,, pay taxes is patriotic bwaaaaaaahhhhh
40. Robin Hood | 12.17.08
How about a surtax on all bonuses over 50k. That way we claw back some of our bailout money.
41. Milcrew2 | 12.17.08
oh no, taxes! sure, taxes for itunes, stupid. taxes to help roads, teachers etc i see no problem with that. oh, and cuttiing education? i believe that’s the exact opposite of what he’s going to do. like most republicans - know what your talking about before you speak.
42. Pete Johnson | 12.17.08
You guys probably don’t realize this, but Obama isn’t president yet. Blame the governor for his policies if you’d like, but associating this to the name “Obama” is gross ignorance.
43. David | 12.17.08
Thomas: What evidence do you have that people on welfare “enjoy a decent level of comfort in NYS”?
44. dumbassnot | 12.17.08
Victor, you fool, NYS tax policy has nothing to do with Obama being president-elect. The recession has been caused by the failure of republican leadership under the Bush Administration. Sure the policy may be a stubborn reaction in light of the economic downturn, but please remember that cause comes before effect.
45. Tactical | 12.17.08
Oh you conservatives are such belly achers. This is a tax on luxury spending, and it is the same as a sales tax. We have a much lower overall tax rate than most developed nations, I don’t think a 4% tax on luxury downloads of entertainment is really going to break the bank. Why don’t you all grow up and realize that we all need services from government, and that they are not free. Oh yeah, you’re the idiots who believed Bush when he said Iraqi oil was going to pay for that debacle. It’s better to pay up front than to borrow and pass massive debt on to our children. And massive debt weighs down the economy more than slightly higher taxes. So please grow up, or at least shut up.
46. Tim | 12.17.08
Time for all the Dems/liberal left to reap their rewards with Obamanation!!! You think this is bad, just wait!!
47. Not the sharpest knfe | 12.17.08
> He also is increasing welfare spending. Cutting education, taxing everything he can think of and increasing welfare at a time of a huge budget short fall.
Have any of you geniuses taken note of the fact that HE HASN’T TAKEN OFFICE YET?
Obama has done nothing. At this point, it’s all on the Bush administration.
48. find YOUR OWN facts | 12.17.08
To John Smith. No he is not. Stop making things up or cite evidence to support your lies.
49. wah wah wah | 12.17.08
I see a lot of complaining, but no better solutions. NYS programs are being slashed so he’s doing what he can in that area. The gov is NOT raising welfare spending so John Smith is a liar. If anything, it’s replacing the sales tax from music or entertainment that used to be purchased in NY stores but the state no longer sees those funds because of online purchases. So keep complaining or try to offer a better idea babies.
50. Rob | 12.17.08
RE: 7. Victor | 12.17.08
Victor you are funny. You are already blaming the guy who yet has not started his duty, never mind being able to do anything.
You are hinting that the Republicans are better. How so, if through their negligence and lack of attention to governing they destroyed one big tax revenue source for the state? Of course the state has to think how to come up with replacement revenue to keep things running.
51. SM | 12.17.08
Victor - um…Bush is still the President. The Governor is elected by the people of NY. There’s even an article about conservatives applauding Governor Paterson (http://polhudson.lohudblogs.com/2008/07/30/conservatives-applaud-paterson/). What the heck does this have anything to do Obama?
52. L. Spencer | 12.17.08
Obama hasn’t done anything yet and can’t until January. Give credit where it is due…on the person who created this mess we’re in: George W. Bush.
The President-elect hasn’t even been sworn in yet and all you right-wingers are already putting the blame on him and the Demos for everything that has, can or will go wrong. Get over yourselves.
53. EBDW | 12.17.08
Need it be reminded to some people here that Obama isn’t even in office yet, and therefore it is completely ridiculous to blame him for everything. I’m not saying that the current administration is to blame, but lets at least wait until the man assumes the office before we pin all the problems of the world on him.
Not to mention, this article says that it is the New York Governor that is seeking these proposed 88 tax increases…last time I checked Obama wasn’t him.
55. Ryan D. | 12.17.08
Now that legitimate online businesses have made some headway on the piracy front by converting would-be digital content pirates into proper online shoppers, moronic stop-gap ideas like New York’s proposed digitally delivered entertainment tax are going to drive those cash-strapped shoppers right back to free distribution software like bittorrent. I suppose the RIAA and MPAA will start incorporating tax evasion into their copyright infringement lawsuits.
What a racket.
56. Johnanon | 12.17.08
I think Saturday Night Live was far more accurate then any one wanted to “see”.
57. Jim Smith | 12.17.08
You all blame the politicians. You should be blaming yourselves for electing them.
The fiscal problems that we are seeing now were entirely foreseeable and were, in fact, foreseen. Ron Paul made a speech on the floor of the house of representatives in the summer of 2002 in which he itemized what would happen to us if we continued with our fiscally reckless policies. Of course, everything that he talked about has just come to pass in the past year or so.
Yet we, through our elected representatives and knowing what was coming down the pike fiscally, chose to embark on a trillion dollar war in Iraq, chose to create a whole new Federal Department (the Dept. of Homeland Security), chose to create the prescription drug benefit etc…
Our deficit is on pace to hit two trillion dollars over the next 12 months.
We brought this upon ourselves by electing and re-electing those who promise us the most, who bring home the bacon to their districts and states etc…
We got the government we deserve.
58. Hello | 12.17.08
I’ve always been curious about internet purchases. What if I live in New York state, but purchase something online while on vacation in California? What if I happen to buy it while I’m traveling between the states?
And, of course, what if I’m in California but I’m accessing a wifi connection located in Oregon?
59. JISMO | 12.17.08
KEEP VOTING DEMOCRAT LADIES!!!!!! YOU DON’T EVEN KNOW WHAT THE WORD TAX MEANS!!!!!!!!!!!!!!!!!
60. make it worse | 12.17.08
Why not? It’s good timing. NOT.
Increase the cost of buying goods, so that we shrink the economy even further, and we can make a recession into a depression.
Holy cow.
If anything, they should be talking about tax cuts to kick start the ailing economy, by encouraging people to spend what they have.
5% of something is more than 10% of nothing.
61. Smitty | 12.17.08
Obama Nation?!?! He is the President Elect… not the NY State Governor. He is not the one who proposed the tax on “digitally delivered entertainment services.” If you are going to complain about something at least make it relevant to the article.
62. Scott | 12.17.08
This is such GARBAGE!
Great… so we pay sales tax on these items, after we pay taxes for the internet service plans we bought so we could shop for these items, and now we have to pay more taxes to download the items we already paid to be able to shop for?
WTF mate?
And what does this have to do with Obama? Last time I checked, George Bush was still the president…
63. Greg D | 12.17.08
People -
We have to get past this Liberal/Conservative, Democrat/Repulican BS. It’s all the same forces behind it, marshalling into a corner where NONE of us want to be. It’s a completely manufactured dichotomy and we are falling/have fallen for it time and time again. C’mon people - it’s in THEIR best interest to keep us divided.
64. you hate NY? | 12.17.08
For those of you that think your state is better than NY because it doesn’t have that ‘liberal’ iTax, here’s a list of states that already have the tax… hardly a liberal bunch. :
Including Nebraska and Tennessee, there are 17 states, plus the District of Columbia, that tax digital downloads, according to our earlier research: Alabama, Arizona, Colorado, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, New Jersey, New Mexico, South Dakota, Texas, Utah, and Washington. (For more details, see our special report from 2006.)
65. Perplexio | 12.17.08
Next Paterson plans to propose the “allotted word count” tax. Anyone who exceeds his her daily word quota whether it be spoken word, written word, or even telephone texting will be taxed…
Here’s another idea for revenue generation, selling corporate naming rights to public streets or intersections or public transportation stops.
In Chicago the mayor has leased parking rights and tolls on the Chicago skyway, to private companies to generate income. It’s been suggested (only half-jokingly) that next he’ll be selling the naming rights of CTA El’ train stops to private corporations to generate income.
Taxing is easy– cutbacks are hard as is being creative with income generating alternatives to taxation. But it seems the only way politicians know how to be creative is in how to hide their corruption.
66. Karl Marks | 12.17.08
Dreaming up new things to tax is just about as senseless as “no taxes”, and would get us no-where. The answer is the sacred cow of North America: GASOLINE.
If we got with the EU program and taxed the things that actually were hurting us we would: A. Use Less, and B. Raise a lot of money. How about $1 a gallon just to get started?
67. Eric Hammond | 12.17.08
Here’s the problem. We have good years. We have bad years. On the good years, do we rescind levies and taxation? No, we typically do not. On bad years, we look for new ways to make up deficits. Those new taxes and levies are permanent, and stay in effect during the ‘good years’. It’s far better to just ’suck it up’ during the bad years then to impose new taxes on consumers that, in effect, diminish the desire to purchase products.
68. Alex | 12.17.08
To you claiming that this is taxation without representation:
You elected all of these people (or don’t live within their jurisdiction anyway, so won’t be taxed). This governer and this legislature DO represent you. If you don’t like them, change them in the next election. A majority of you voted to put these people in office.
If you didn’t vote, well, then you don’t get to use your voice until after the next election cycle, once you fulfill your civic duty.
69. johh | 12.17.08
anti-tax people, get over it. Sales tax additions, slight percentage income tax increase: two perfect ways to close budget problems. Supply-side help works sometimes, but not when the economy is crumbling like this. There’s really no other solution. If you can afford to download songs, what’s a few cents more per song? Really! c’mon!!
70. really mad | 12.17.08
Time to take all of our Ipods to Boston harbor, dress up as Indians and toss them in the water…
71. New taxes | 12.17.08
New taxes will equal the exit of more business just what NY Needs. With the promiss of higher taxes, business will sit on the sideline and not spend another dime wich equals zero jobs!!
72. indianarevo09 | 12.17.08
I’m with the folks calling for a revolution…it’s not a joke. Our founding fathers would be ashamed that the nation (the people) has allowed the government to bully them and force the citizens into corners. That is why the Constitution allows for the abolition of our government; corruption was inevitable. Too many of us depend on the government in too many ways. That was the real genius of FDR in the Great Depression…he probably avoided a violent rebellion by making people dependent on government programs. The first 150 years of this country the government was scared of the people…now the people are scared of the government. That’s not was the US was supposed to be about.
73. Dan from Canada | 12.17.08
you are already getting Taxed on Tax! in some cases you are getting tax on tax on tax!
welcome to an era wheras both governments (Us and Canada) are not accountable for thier actions - I feel for Obama, as he has been set up from the get go, and walking into this mess will be hard to fix, for anybody, i will tell you one thing, just “printing” money is probably th nail in the coffin - you cant just print money! your dollar will be worth “$0″ as the slide has started.
74. ThanksGov! | 12.17.08
While yuppies bounce from chelsea to soho with listening to the latest disaster by Britney Spears, roads in Buffalo crack and nothing gets done about it. Lets bemoan taxes on food and clothing, fine, but itunes music is ABSOLUTELY NOT essential to living life. BE REAL people, you know you’re going to have to pay taxes ANYWAY, if you don’t like the tax on digitally devlivered entertainment, DONT DOWNLOAD ANY!
Thanks Gov.
75. illuminaut | 12.17.08
To all those screaming bloody murder: look at it in perspective for one second. We already pay sales taxes on tangible goods like CDs and DVDs. Once you start charging for digital versions of the same content it makes only sense to also tax it. Those who think NY can balance its books simply by cutting spending are living in a dream world. Maybe a righteous dream world, but it doesn’t make it any more realistic.
76. Shawn | 12.17.08
While this is an appalling idea, what exactly does this have to do with Obama? Why isn’t YOUR president, the current Republican president, doing anything about it? Cracks me up that blame for this economy is already being auto forwarded to Obama’s term. Pathetic. Obama is not going to be able to get to his campaign promises for health care, education and the like because he will be so busy cleaning up baby bush and the Republicans disastrous mess.
77. All out of change | 12.17.08
Can’t stop them from taxing but how about you put a limit to how long they plan on taxing it. I’d hate to be still paying this tax 4 years down the road and the economy is fine. Plenty to cutback on before anyone should consider more taxes.
78. johnadams | 12.17.08
i just read that comment saying its christian to pay tax and i can’t stop laughing. render to caesar what is caesars??? oh, yeah, the guy who in time of crisis declares himself dictator for life (sound familiar?)…the guy who declared HIMSELF a god? the guy who threw christians in the lion pit?? oh, dear, oh me, oh my. i gotta catch my breath. yeah, pay taxes- get screwed. makes sense.
i feel for all you new yorkers. going to the movies, buying music, buying clothes, taking taxis…..goddamn its already bad enough.
79. Cyn | 12.17.08
I’m a liberal, but that doesn’t mean we believe in taxing everything—or even higher taxes. That is an outright myth spread by uninformed joe-the-plumber types who watch Fox news. This tax seems inevitable, like sales tax and other flat taxes, but it SUCKS never the less. The repubs should like it, they love flat tax. State governments need to get there act together and clean up their budgets.
80. P.Smith | 12.17.08
1)The comments about being taxed without representation are woefully out of place as those discussing the tax are elected officials. If you don’t like what they do this time around - don’t re-elect them that’s your recourse and your redress.
2)It is rather offensive to read the comments from obviously sore loser, right wing, republicans and thier ilk complaining about an economy they flushed down the toilet in the first place by expanding free trade, enabling corporate outsourcing to reach unimaginably unethical heights, and deregulating every properly regulated industry this country has a connection to. And while we’re on offensive can we please leave the war on the middle class stuff aside - republicans have no right to lay claim to the victim role in that.
3)Let’s us try not to spin things too far shall we. We are talking about taxing a LUXURY. Luxuries should be taxed. This is not food or clothing we are talking here - it’s music, videos, etc… You pay a tax on these things when you walk into a video or music store so why should the means of delivery of the media you purchase be a determining factor in taxing it or not?
81. Amazed’n dazed! | 12.17.08
NY and the other 17 fine tax hound states or districts need to reduce their overhead.
Taxes on music that are paid for on the web will lead to the downfall of all web businesses. Tax music today, all of eBay and everything else tomorrow!
We all will become taxed out of existence, 15 billion in short fall taxes is an outrage. For that we get poor service, high crime, bad roads, an incredible web of governmental red tape.
Time to make some changes for the people, by the people!
82. Jesse | 12.17.08
Am a little worried about folks upset about 4% on stuff that is fun but not vital. If the tax is too large a burden to folks who can afford such things, then don’t buy them — poof, no tax to pay. I can assure you that this tax isn’t an issue for those no longer making enough to pay for housing, utilities, food, medicine, or transportation because their budgets don’t include extraneous items in the first place.
83. mwf | 12.17.08
How about all the millionaire politicians set an example by foregoing any and all salaries, benefits and pensions?
Why should taxpayers be supporting those that don’t need our money?
How much is enough for these greedy people?
84. Jared Heltemes | 12.17.08
This is a desperate attempt in desperate times. Public services cost money. Would you like them to fire their police and firefighting force so you poor consumers don’t have to pay a petty extra four cents per download?
85. Mary land | 12.17.08
From the article at http://news.cnet.com/8301-13578_3-10013327-38.html, “Including Nebraska and Tennessee, there are 17 states, plus the District of Columbia, that tax digital downloads, according to our earlier research: Alabama, Arizona, Colorado, Hawaii, Idaho, Indiana, Kentucky, Louisiana, Maine, New Jersey, New Mexico, South Dakota, Texas, Utah, and Washington.”
They also state that California and Wisconsin proposed similar measures which did not pass. So all of the rhetoric about ‘those darned liberals’ and living in NY or Cali is laughably incorrect. These measures have been brought in very conservative, republican states and were passed by very republican, conservative lawmakers. Also, CD sales in EVERY state except Delaware are taxed, while internet purchases are not. Is this fair to the stores that sell CDs? Or the companies that make CDs? If we want to protect the small business owner from going under because of tax disparages, then measures like this are helpful to even the playing field. A little more fact-finding would be good on every reader’s part. You may be surprised to learn that there’s more to this story than a headline. Finally, be careful when you point fingers, as it usually ends up pointing back at YOU.
86. Petro | 12.17.08
Stupid soda and Ipod tax!!!All these cutbacks, yet not one politician mentioned cutting back on the welfare rolls!!!!!!!!!!!!!!!!
87. James K | 12.17.08
Illuminaut: “Those who think NY can balance its books simply by cutting spending are living in a dream world.”
Actually, they could save a ton of money, realistically, if they just privatized most of their services. The public would still get the services, it just wouldn’t be run by the government.
Those of you that think this is just some little petty tax are overlooking important points; one of them being that NY has now created a disincentive to purchasing iTunes music. They are playing favorites with your money. It’s less fair, for Apple and the consumer. Now, instead, more people will either steal it over the internet or buy the CD. As you might conclude, that will actually give the state less revenue.
By the way, check out information on the Laffer Curve for some related effects, here.
88. Brandon | 12.17.08
And for goodness sakes, can we stop classifying everybody as “democrat” or “republican”
There’s a whole variety of people with different beliefs, no matter WHAT side of the fence you camp on. The whole political platform would be better off if it didn’t have to be just DEM or REP.
and it’s you pushovers who let the government take a little bit at a time - little bit here, little bit there, little bit more, and next thing you know they own and control everything. which they pretty much already do.
“We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” - Winston Churchill
“If you will not fight for the right when you can easily win without bloodshed, if you will not fight when victory will be sure and not so costly, you may come to the moment when you will have to fight with all the odds against you and only a precarious chance of survival. There may be a worse case. You may have to fight when there is no chance of victory, because it is better to perish than to live as slaves. ” -Winston Churchill
89. nothing new here, move along | 12.17.08
Apple already collects and remits sales taxes on all iTunes purchases in any state that they have a retail presence.
And, as another poster pointed out, this is a four cent tax on a ninety-nine cent download. Shut the asdfj up already.
by the way, haters, what does this have to do with Obama? NOTHING.
90. totalcontrol | 12.17.08
So…once the State budget is balanced how soon are all those new taxes be eliminated?
Was the NYS’ budget balanced and way the red before the Iraq war?
Harlem’s population votes democrat 99% all the time. What have they done to them lately beside transforming it to a “new renaissance place with cool WiFi spot”?
Why not go all the way : give everyone a job with the exact same pay. Give everyone free clothing (sorry only comes in blue) and free shelter?
Why always go go higher and further? All we need is a roof, some caned food, 24hr TV and a mindless job. Let the Gov decide for us…as long as we get fed.
91. American Refugee | 12.18.08
Why does the discourse here sound more like a Yugoslavian parliament? Please people, you all live in the US still. Try to find some common ground. Watching America on the news from across the Atlantic for the last two years made it clear that the fighting isn’t helping anything.
I get the feeling that many of you seem to think that a Darwinian struggle between opinions will result in the best one, but it will only give you the most popular one. Not to mention that logic and careful reason can often leapfrog evolution anyway.
Keep some facts handy. I’m living in the EU right now, and everyone makes less, on average, and pays approximately 10% more in taxes, on average, than any one person living in the US. If you combine the income taxes and business taxes and 19% sales taxes (value-added, so that you never even see it), Europeans pay _60%_ of their income in taxes. The flip side of this exorbitant rate is that most of them live well, and at least in Germany, there aren’t any beggars on the streets that didn’t choose to be there.
The other flip side is that few people have nearly as much opportunity to drastically change their lives through their own hard work. But that has less to do with taxes and far more to do with how regimented their educational and social programs are, let alone a culture of lifelong clique-ism.
The US is a fantastic place to live precisely because of the rough-and-tumble government that you are all welcome to be a part of, if you only learn the rules of the game and play well with others. Spewing your hatred for the other side on worldwide websites like these only solidifies the stereotype of the US as filled with nothing but self-righteous and cruel, gun-obsessed religious white men constantly fighting for dominance over shrill liberal communist black women.
Neither of these are very accurate portrayals of the US, and you do yourself a disservice to believe that either of them exist. Respect yourself enough to consider the dissenting opinion.
92. 0311 | 12.18.08
This is double taxation. I paid taxes on the money when I earned it. Now, I have to pay taxes to spend it? Sales tax should be illegal. It hits the grandma on a fixed income the same as the billionaire. All taxes should be based on income.
93. Matt | 12.18.08
This is insane! Try spending our money well to begin with before stealing more of it.
This new tax will do nothing more than increase illegal downloading - I can see my way to pay $.99 for a song but more? I’d just not buy it.
94. John Matthews | 12.18.08
I love the Republican NeoCon strawmen that this is some “lib’rul” thing, after all, who supposed “led” [sic] this country for the last eight years? Um, that would be a Conservative Republican. Who “led” [sic] congress for six of those years. Yes, that too would be Republicans. So how did we get into this mess? Republicans. Republicans. Conservative Republicans. So, clearly, there’s a lot of ignorant easily [mis]lead posters here thinking it’s all “those ‘lib’ruls” who are, not only sheep to the clueless angry hate-speak talk radio righties, they’re not smart enough to know who’s actually been in charge while the US has crumbled. You’re not part of the solution you right-wing groupthinkers, you’re actually the root off the cause. Congratulations, you’ve reaped what you ignorantly sowed.
95. tara | 12.18.08
HEY, NEW YORK! get your own house in order. look into madoff’s tax returns, bet you’ll find a few billion uncollected.
96. Ryan D. | 12.19.08
“And, as another poster pointed out, this is a four cent tax on a ninety-nine cent download. Shut up already.”
Of course, how could naysayers not understand? Blindly accepting all taxes as long as they appear to be minor just makes sense. Surely all other options have been considered. This must be in everyone’s best interest because the governor says so. NOT.
In a consumer driven economy that’s hurting because people are not CONSUMING, taxing the very things that grow the economy is stupid. I’m not saying an entertainment tax is going to make the economy tank, but it isn’t going to help either. If you’re willing to accept such a tax simply because it’s small, don’t complain when other new taxes are imposed to stave off funding emergencies and you’re being nickel-and-dimed to death. A financial state that will be magnified because you’re savings and job are gone.
Trackbacks/Pingbacks
6. New York to tax e-books? N.Y. voters and the IDPF need to give Gov. Paterson a piece of their minds | TeleRead: Bring the E-Books Home | 12.19.08
Leave a Comment
We do not publish all comments, and we do not publish comments immediately. The comments feature is a forum to discuss the ideas in our stories. Constructive debate - even pointed disagreement - is welcome, but personal attacks on other commenters are not, and will not be published.
Tip: Do not write a novel. Keep it short. We will not publish lengthy comments. Come up with your own statements. This is not a place to cut and paste an email you received. If we recognize it as such, we won't post it.
Please do not post any comments that are commercial in nature or that violate copyrights.
Finally, we will not publish any comments that we regard as obscene, defamatory, or intended to incite violence.
1. Jonathan Dickson | 12.17.08
THEFT!