The record labels couldn’t do it, but New York’s Governor wants to make Apple (AAPL) iTunes shoppers pay more than 99 cents per song.
Much of Wall Street is gone now and so are the fat tax revenues it used to earn for New York state.
In order to close a resulting $15.4 billion budget gap, New York Govenor David Paterson wants proposed 88 new fees and taxes.
Among them, an “iPod tax” on the sale of downloaded music and other “digitally delivered entertainment services.”
The Daily News reports that the the Governor also wants to tax movie tickets, taxi rides, soda, beer, wine, cigars and massages. Clothes under $110 would also lose their tax exemption. Cable and Satellite TV would become subject to sales tax.
We keep hearing that consumer spending is our economy’s driver, so taxes that penalise the poor as much as the rich for buying casual goods and services seems odd to us.
But then, we’re not trying to find $15.4 billion under the couch cushions.
“This is where we are,” Paterson told reporters. “Maybe we should have thought about this when we were depending on what we thought was inexhaustive collections of taxes from Wall Street – and now those taxes have fallen off a cliff.”