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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."

27 of 655 comments (clear)

  1. Easy Remedy for Those Looking to Avoid by eldavojohn · · Score: 5, Informative

    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.
    1. Re:Easy Remedy for Those Looking to Avoid by FooAtWFU · · Score: 4, Funny

      Simple solution if you don't have someone to do this to: Head over and shop music the old-fashioned way, in New Jersey.

      --
      The World Wide Web is dying. Soon, we shall have only the Internet.
    2. Re:Easy Remedy for Those Looking to Avoid by aesiamun · · Score: 4, Informative

      Did you forget that an entire state is attached to that hole they call New York City? Some of us live in the middle of the state...with NY State already taxing Amazon purchases, the drop of education money and the 18% tax on non diet soda, I have a feeling NY doesn't want people living here anymore. :(

    3. Re:Easy Remedy for Those Looking to Avoid by MightyYar · · Score: 4, Interesting

      They'll be losing me next year! Honestly, why do people stay in this high-tax state? I lived in PA before and the state took 3% income tax. That's an ADJACENT STATE! NY takes 7%, for reference... New Jersey has this radically progressive tax schedule where the poor pay 8x less than the rich, so it's difficult to compare with New York.

      To be fair, sales tax is lower by 2%. Of course I live in the city, so pay an additional 3 or 4% income tax and 4% sales tax - but the situation was similar in Philly.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    4. Re:Easy Remedy for Those Looking to Avoid by Coopjust · · Score: 5, Interesting

      Amazon is charging tax on Amazon orders placed by NY residents despite the fact that Amazon has no facilities in NY due to an unconstitutional law that hasn't been challenged yet. It says if you have an affiliate in the state (like, affiliate links), you are liable to pay tax.

      Newegg.com started doing it too, but two months later they sent an email to NT residents that stated (in a nutshell), "We looked at the law with our lawyers and there is no way NY could ever win this. They'd be stupid to take it to court. Therefore, we're going to stop taxing NY customers again."

      Somebody has to take this law to court. The problem is, no one has the balls to.

    5. Re:Easy Remedy for Those Looking to Avoid by electrictroy · · Score: 4, Funny

      Well they're not taxing mine. If I'm forced to collect the 7% sales tax through some automated system, I will, but then I'll refund it directly back to the NY customer. And I will NOT be filing any kind of tax form with New York.

      New York is welcome to send the police to Southern Pennsylvania to try to arrest me. Good luck with that. The PA Militia (read: rifle-toting rednecks) and PA National Guard does not take kindly to foreign invaders, so I'm think I'm relatively safe.

      --
      The government is not your daddy. Its purpose is not to raid middle-class neighbors' wallets and give it to you.
  2. Sleazy by qoncept · · Score: 5, Insightful

    "Let's propose tax cuts where it'll hurt em so they'll favor our new tax."

    --
    Whale
  3. A government in its death throes by brian0918 · · Score: 4, Insightful

    So the state is collapsing under its government's regulations, and the government's plan to solve the problem is to regulate further, driving more markets out of the region? Brilliant! Eventually they'll learn, or be forced to learn, that you can't have your cake and eat it too. They will have to downsize the state government and withdraw the regulations hindering the market, or they will see their economy disappear. One or the other will be the inevitable outcome.

  4. Less Government for Less Money by Nom+du+Keyboard · · Score: 5, Insightful

    I would rather have less government for less money. Did you ever note that politicians always say they'll have to cut the most inflammatory items - police, fire, libraries - first? How about their own salaries next time for starters?

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  5. Re:I'm in favor of the Apt Tax by Andr+T. · · Score: 4, Funny

    ...and I thought apt tax was some kind of Debian software.

    --

    Any life is made up of a single moment, the moment in which a man finds out, once and for all, who he is.

  6. Re:Issues and Problems by Nom+du+Keyboard · · Score: 4, Insightful

    They have a sales tax, right? They're just extending it to non-tangible goods.

    It's more than that. Now Apple (although probably not Amazon since they maintain they have no presence in NY) will have to collect a special tax strictly for NY residents, and pay that tax regularly to the state, and maybe file additional reports at additional expense, and no longer have the nicely uniform 99 cents/download price/image - and that's the effect on just one company alone. Multiply this by every company affected in every new area and the burden is significant.

    Of course NY prides itself on being a very liberal state, and Joe Biden has said that paying taxes is a civil duty. Maybe they'll like having this happen to them. If not they can always vote some new people in - oh wait! The election is already over and you're stuck with these clowns for at least the next 2 years.

    (If you say why Apple? It's because there are Apple computer stores in NYC giving the state tax people something to get their claws into.)

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  7. Cut costs? by oDDmON+oUT · · Score: 4, Insightful

    I recently read that New York City's entitlements policy, bloated "public service" sector, fiscal irresponsibility and system of governance were key in bringing on the bankruptcy of the 70s.

    Could this be a case of the tree not falling far from the apple?

    The remedies in the 70s included fiscal conservatism, cutting entitlements, dealing with corruption and going after crime.

    Rather than raising taxes to enable business-as-usual to continue unabated, maybe it's time state officials considered wielding the same scalpel used in the past to the body of the state today.

    --
    Some days it's just not worth
    chewing through my restraints.
  8. Re:A lot of the US should follow by jedrek · · Score: 4, Interesting

    You mean the illegal immigrants that pay all consumption, property and ownership taxes while not getting any of the direct benefits from them? The immigrants that are hired by US citizens? Yeah, they're the problem, not no-bid gov't contracts, spiraling health care costs, corporate subsidies (both industry and agricultural) along with two wars.

  9. New York subsidizes the quite a few losers. by FatSean · · Score: 5, Insightful

    Those losers being states that take in more federal tax money than they contribute. New York gives up 1/3 of it's tax revenue to states like MS,MO,AL,LA,WV,NC,SC, etc...You know, the 'conservative' states where 'small government' and 'less taxes' get a huge response.

    Imagine if the Federal Government let New York keep that money in state...instant balanced budget and then some.

    --
    Blar.
  10. Re:On the positive side by larry+bagina · · Score: 5, Insightful

    bleeding money. Interesting. Let's say you had a gaping leg wound that was bleeding, well, blood. For this analogy, assume you're a hemophiliac and the bleeding won't stop on it's own accord. Would you get some blood packs and inject them into your arm? No, you'd stop the bleeding (and inject blood if needed). Raising taxes doesn't stop the bleeding; cutting spending does.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  11. Re:A lot of the US should follow by Jhon · · Score: 4, Interesting

    You mean the illegal immigrants who's kids suck up any and all tax money they may generate - and then some - the moment they enroll them in a public school? It costs ~$12k-$14k per kid. How many of these families generate enough income to cover just one kid? Not counting the other drains on social programs.

    So yeah... they are the problem. So are the other things you meantion. They are not mutually exclusive.

  12. Re:On the positive side by electrictroy · · Score: 4, Insightful

    We have socialized healthcare - Medicare - which pays a huge chunk of our hospital bills. That's why some American politicians get the "bright" idea to tax hamburgers to discourage bad health risks & lower Medicare costs.

    Me, I prefer Thomas Jefferson's view:

    (updated to the modern age): "Whether my neighbor eats one hamburger, many hamburgers, or no hamburgers, matters not to me. His actions do not harm my body, my property, nor my rights, so I will allow my neighbor to eat or not eat as many burgers as he pleases." - That is the true meaning of individual liberty. Do whatever you damn well please, and respect others' rights to do the same, so long as they do not harm your body, property, or rights.

    --
    The government is not your daddy. Its purpose is not to raid middle-class neighbors' wallets and give it to you.
  13. Whaaambulance by mpapet · · Score: 5, Insightful

    Your post, and the parent post are choking on their own misinformation.

    The US has on of the highest corporate tax rates in the world

    If you want to pick a *single* statistic, to tie your frustrations to, then that's about as bad as it gets.

    I think we would all agree that the American economy remains one of the most vibrant in the world. It remains one of the most business friendly. http://money.cnn.com/2008/09/10/smallbusiness/best_countries_for_small_biz.smb/

    8 years of explicitly promoting a lax regulatory environment for every category of business in the U.S. hasn't seemed to have helped keep jobs in the U.S. at all. Wages certainly haven't gone up for those making less than $50,000/yr in the last eight years.

    So let's chop away at those taxes! Publicly funded law enforcement is overrated. Organized crime/gangs do a good job protecting the neighborhood. Courts? Jails? Don't need em. Let's get rid of utility regulation too! You are perfectly willing to pay way more for electricity or safe fresh water at monopoly prices?

    It's time you came to the realization that taxes are a part of what makes living in this country great.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
    1. Re:Whaaambulance by MightyYar · · Score: 4, Insightful

      It's time you came to the realization that taxes are a part of what makes living in this country great.

      Except that you seemed to be aiming at the feds, yet the things you mention are overwhelmingly local in nature (law enforcement, courts, jails, utilities, water). Of course there are federal aspects to these things, but most of the money is collected and spent locally.

      Federal money primarily goes to social security, interest payments on debt, welfare, and the military. You could argue that these things are "part of what makes living in this country great", but you have to at least concede that the opposite viewpoint also has some merit.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    2. Re:Whaaambulance by ericrost · · Score: 4, Insightful

      I call bullshit:

      Fact: Welfare Costs 1 Percent of the Federal Budget

      Widespread misperception about the extent of welfare exacerbate the problems of poverty. The actual cost of welfare programs-about 1 percent of the federal budget and 2 percent of state budgets (McLaughlin, 1997)-is proportionally less than generally believed. During the 104th Congress, more than 93 percent of the budget reductions in welfare entitlements came from programs for low-income people (Center on Budget and Policy Priorities, 1996). Ironically, middle-class and wealthy Americans also receive "welfare" in the form of tax deductions for home mortgages, corporate and farm subsidies, capital gains tax limits, Social Security, Medicare, and a multitude of other tax benefits. Yet these types of assistance carry no stigma and are rarely considered "welfare" (Goodgame, 1993). Anti-welfare sentiment appears to be related to attitudes about class and widely shared and socially sanctioned stereotypes about the poor. Racism also fuels negative attitudes toward welfare programs (Quadagno, 1994).

      source: http://www.apa.org/pi/wpo/myths.html

      Find someone to pick on besides those that are scraping by. Keep in mind that the defense budget is 54% of the federal budget in the US. I'd much rather feed hungry people than shoot them.

      source: http://www.warresisters.org/pages/piechart.htm

    3. Re:Whaaambulance by ericrost · · Score: 4, Insightful

      So you'd rather preach, be self-righteous, and let people starve than deal with the REAL problems that are out there? I hate this "personal responsibility" crap. I am personally responsible. So are many people that get laid off and take advantage of the Unemployment Insurance that they PAY for out of their checks. The idea that somehow people in the past were more responsible, or educated, or hardworking is just plain crap. Every time the financial markets get deregulated, predatory lending takes off, and everyone ends up broke. The idea that somehow uneducated consumers that haven't dealt their whole lives with complex financial instruments that many of the people selling them don't even fully grasp is blaming the victim.

      Why don't you take the energy used to create all that hot air and use it to make some positive changes in the world? Volunteer doing literacy training so that someone who "didn't pay attention in school" can get a shot at life and be productive members of society (since you understand that's what the VAST MAJORITY of them want to do?). Go feed some people at a homeless shelter and see how our Department of Veteran's Affairs leaves those that should be heroes behind to deal with debilitating psychological disorders without a shred of help.

      Either grow a heart and start being a part of the solution or shut up and sit down.

    4. Re:Whaaambulance by ericrost · · Score: 4, Informative

      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.

    5. Re:Whaaambulance by Neeperando · · Score: 5, Insightful

      white applicants with similar financial characteristics and credit histories

      So they said, "If you're going to make shitty loans to white people, you have to make shitty loans to black people, too." It sounds like they were making shitty loans already.

      I know a lot of the more conservative folks around here don't believe racism is real, but here's my opinion: Making bad loans to poor people is stupid, but making bad loans to poor white people and not to poor black people is stupid and racist.

      In any case, you're just proving my point even more. Do you really think that ACORN suing banks to force them to be equal-opportunity idiots is the sole cause of the crisis? According to this, this, and this, less than a quarter of the subprime loans were made by institutions that were covered by the CRA. Also, there's no data to suggest that CRA subprime loans have a higher default rate than the other 80% of subprime loans. And if ACORN sued Wells Fargo and CitiBank, how come Wells Fargo didn't go under because of all the bad loans it was forced to make in the last few years?

      There's two sides to every story, and usually both sides are wrong. Certainly the government was stupid to encourage banks to make bad loans and are not without culpability here, but the banks were doing it anyway.

      --
      Being a computer scientist means you tell people how computers should work, not that you know how they actually work.
  14. My best attempt at a Simple Steps to Fix by kenp2002 · · Score: 5, Insightful

    Consitiutional Amendments
    "No governement agency at the federal, state, or local level shall spend in excess of the previous 3 years average of income from taxes and fees collected except through a voter approved bonding" (Prevent Overspending)

    "No person shall have their property tax increased beyond 3% in any calendar year, nor increased greater then 100% since the time of purchase or transfer of ownership of their primary residence by any goverment agency." (Prevent trying to steal and redistributed land through taxing people out of their homes)

    "A person shall be secure in their private property and eminent domain shall be restricted for use solely for the appropriation for government owned and operated use and may not be transfered to private ownership."
    (Clean up 'public use' for land stealing)

    "No company shall be tax on profits in excess of 5% of net revenue by the federal government and taxed no more then 15% when combined with local and state taxes." (Limit corporate income tax, so states at most can tax corporate income at 10%)

    "The pay of corporate officers of a publically traded company shall be a scale of the median salary paid by the company to it's employees and contractors and may not exceed 10 times the median salary of the company in salary and no more then 20 times the median salary in stock compensation at the time of aquisition of those stock options." (If the typical employee makes $40,000 a year then the CEO can never make more then $400,000 in a salary and cannot receive more then $800,000 is stock in a year. If they want a raise, most employees must get a raise also)

    "The term of any senate or house member shall be limited to 2 terms"

    Those would go a long way.

    --
    -=[ Who Is John Galt? ]=-
  15. Re:A lot of the US should follow by characterZer0 · · Score: 4, Interesting

    I'd rather my taxes pay for the education of some kids from a hard working illegal immigrant family that values education than for the babysitting of some welfare babies that do not make any effort to learn.

    --
    Go green: turn off your refrigerator.
  16. Re:On the positive side by nabsltd · · Score: 5, Insightful

    You can't drink water or juice? You're actually claiming that you are forced to drink regular soda. You somehow suffer without it. Seriously?

    Yes, seriously.

    Pick something that you consume a lot more of than the majority of the population (high-speed internet...we'll tax you on each byte transferred, etc.), and replace that with "regular soda" in your argument.

    Once enough people stop drinking sugared beverages, then the government will have to put a tax on the "diet" ones to make up for the tax shortfall. Taxing non-diet soda is just another "what 'for the good of the children/fat people/whatever' reason can we use to get more tax money?" plan.

    Basically, you try to convince all the people who "won't be impacted by the tax" to vote for it (or to vote for the representatives who implemented it). Then, you can get all the people impacted by this tax to vote for the "diet soda tax", because it will even things out.

  17. Re:Cut the Military to 1/4 of it's current budget. by bobobobo · · Score: 4, Insightful

    National security is more important than a bunch of bloated social programs that tend not to work very well.