New York considers taxing iTunes downloads

New York wants a share of iTunes’ money.The state is staring at a $15.4 billion deficit so Gov. David Paterson is proposing an “iPod tax” as part of his state budget. Under the plan, New York would charge state and local sales tax for “digitally delivered entertainment services,” according to a story in The New York Daily News. David Paterson unveils dire New York State budget that includes new taxes, layoffs and cuts
Gov. Paterson’s proposed $121 billion budget hits New Yorkers in their iPods – and nickels-and-dimes them in lots of other places, too.Trying to close a $15.4 billion budget gap, Paterson called for 88 new fees and a host of other taxes, including an “iPod tax” that taxes the sale of downloaded music and other “digitally delivered entertainment services.”

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