‘iTax’ to hit iPod users in New York

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43309453 iTax to hit iPod users in New York
If you’re in New York and happen to own an iPod, count on paying an ‘iTax‘ for every song you download.

The Guardian reports that Governor David Paterson has slapped a 4% tax on “digitally delivered entertainment services” next year to help tackle the financial crisis. Music, video and e-books will be hit with higher taxes as part of a larger effort to close the state’s $15.4bn budget gap.

Being one of 137 additional fees the state will exact from residents in its 2009-10 budget, the iTax joins the nick-named ‘Obesity Tax’ on sugary soft drinks, along with raised taxes on everything from taxi rides to manicures.

Internet trade organizations say it will increase piracy, and that downloading should be encouraged – as it involves no environmentally damaging packaging – rather than discouraged through taxation.

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