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New York Gov. David Paterson has proposed a 4 percent tax on digital music downloads and other "digitally delivered entertainment services." The "iPod Tax," as it's become known, is just one of many new taxes the governor has proposed in an effort to close the state's multibillion-dollar budget gap. Although New York's potential adoption is drawing attention, a number of states have already imposed a digital download tax, and many others could soon be following suit.
Sadly, all I see this doing is opening the floodgates on an already existent problem: Piracy. This wouldn't by NYS's first attempt at putting the digital squeeze on taxpayers. Anyone remember the amazon.com debacle where NYS was actually sued and the tax called unconstitutional by amazon.com?
