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New York State Budget Relies On Entertainment Tax
einer writes "Facing a budget shortfall, New York State Governor David Paterson crafts a budget that taxes iPod music downloads and other 'digitally delivered entertainment services.' On the chopping block is $700 million in school aid and $3.5 billion in health care subsidies."
Simple solution if you think this is unjust highway robbery targeting the technically gifted: Find a friend or family living in a different state and get their address. Call your credit card company and add their name and address to a billable location for your credit card. Then when you set up your credit card information on iTunes or Amazon or whatever, list their address as the billing address. They can't apply the tax even if you are downloading in NY.
My work here is dung.
Well, on the up side he's trying to raise more money through products rather than income taxes. I'd prefer the taxes on ipods, cigars, gasoline, and luxury cars to income tax increases. Of course if it hurts NY businesses (I don't think it will), then it'll hurt in the long run. But the state needs to stop bleeding money immediately.
Developers: We can use your help.
How is downloaded music any different from buying a CD, in regards to taxes?
It brings up issues of jurisdiction. If Apple's servers are in CA and the payment is processed in CA, and Apple's facilities are in CA, then how can NY tax them? It's similar to mail-order tax issues.
By the way, I know this is theoretical, since Apple in fact has stores in NY. NY probably has every legal right to tax AAC downloads from Apple.
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
Policemen and firemen take up much more money in salaries and guaranteed retirement benefits than politicians, if only because there are so many more of the former group. Also, the result of cutting politicians' pay would be to make it so that only the rich and the corrupt can afford to be politicians.
A NYC lawyer blogs. http://www.chuangblog.com/
Actually, the state is collapsing under a sudden, dramatic downturn in tax revenues because Wall Street firms are losing money all of sudden. Quoth TFA:
Apparently the state of New York didn't build up any cash reserves/pay off debts when times were good.
I don't see where regulation comes into it. It's not that I expect you to RTFA or anything, but it sure sounds like you're jumping to conclusions to fit your pet theory.
[Sir Garlon] is the marvellest knight that is now living, for he destroyeth many good knights, for he goeth invisible.
This is exactly what I learned 12 years (or more?) ago when I played Sim City for the first time.
Maybe we should get these politicians a copy so they can see what happens when you jack up taxes - abandoned warehouses, skyscrapers, and houses. Whoops!
Buckle your ROFL belt, we're in for some LOLs.
Lost his marbles? Please - He's the only responsible one up there in Albany!
The state has a 12 billion dollar shortfall - and NY State is not the federal government - it can't print money to get out of it. This is all because Pataki, Spitzer, and the other previous idiots running this state kept thinking the good times would be around forever, and passed spending programs that reflected it. Well now they're gone, and its about time an actual adult took responsibility and proposed serious ways of closing the gap.
Patterson is proposing both service cuts across the board, and tax increases - not to mention cutting benefits for state employees. Meanwhile the state senate and the assembly blubber about nickle-and-dime crap. Personally, I think we should cut every new program added in the past 8 years, and see how much of the gap that closes.
You need to look at the effect of past luxury taxes."BR" They do things like put the people who work on boats planes and sports cars out of business.
With a net loss in tax revenue.
Federal courts?
Necessary and they receive less than $50 billion IIRC... I'll gladly continue to pay for this tiny fraction of the federal budget.
Federal law enforcement?
Again, a necessity that receives less than $50 billion, including the Coast Guard. People won't all agree that the current size is appropriate, but I don't think people generally object to some level of federal law enforcment.
You clearly don't really understand how much Federal money is distributed to your State/Local gov't.
I do - it's one of the biggest items: welfare. Most of the money for Medicare, Medicaid, etc is distributed by the states. Personally, I'd prefer a system where states are required to fund their own social programs and the feds would only subsidize poor states rather than collect all of the money, tie strings to it, and then redistribute.
Federal highways are way overrated too. Let's stop maintaining those.
First of all - much of the funding comes from gas taxes and local tolls. Second, have you BEEN on a federal highway??? They stopped maintaining those a long time ago :)
Federal support of railroads are a money pit too.
You mean Amtrak? It's almost of no consequence whatsoever. New York's rail system is almost more impressive.
W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
I'll say this real slow so you understand:
UNEMPLOYMENT INSURANCE IS NOT WELFARE.
It's paid for out of the checks of the workers (and then funneled into the programs by the federal government) that's why its called unemployment INSURANCE. This is the biggest crock of shit that the blame the victim "personal responsibility" crowd needs to get over. Its just as much welfare as your HEALTH insurance is.
My Babylon