Large manufacturers in the automotive and electronics industry aren’t alone in having money problems right now. Alongside these firms in dire economic straights are consumers and even state and local governments.
New York State Governor David Paterson is looking at a massive $15.4 billion deficit in the state budget. To balance the budget the governor reportedly plans to raise some taxes and eliminate some jobs.
One of the most controversial taxes on the budget agenda would see New York residents paying more for digital entertainment including downloads from iTunes and other digital services like eBooks for Amazon's popular Kindle reader.
The state would charge a tax on digitally delivered entertainment services reports CNET News. Other than adding to the cost of music from iTunes, the tax would also affect things like tickets to sporting events, movie tickets, taxi rides, satellite TV, and satellite radio.
Patterson told NYDailyNews.com, "We're going to have to take some extreme measures." The so-called iPod Tax isn’t the only method on the agenda for increased tax revenues New York residents are facing. The plan would cut state aid to schools by $689 million, cut healthcare benefits by $3.5 billion, and eliminate 521 state workers and seven state agencies.
Patterson continued saying, "This is where we are. 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."
The proposed budget still needs approval by the state legislature before the proposed taxes go into effect.
quote: But talking about odd taxes, an iPod tax? Whats next, a Starbucks tax? Newspaper tax?
quote: The opinions expressed in this commentary are solely those of David Paterson.
quote: So you're saying everything that people that is not needed for survival should be taxed because those that buy those things can afford it?
quote: The plan would cut state aid to schools by $689 million
quote: New York State Governor David Paterson is looking at a massive $15.4 billion deficit in the state budget. To balance the budget the governor reportedly plans to raise some taxes and eliminate some jobs.
quote: Patterson told NYDailyNews.com, "We're going to have to take some extreme measures."
quote: To a Democrat cutting spending and killing entitlement programs isn't extreme apparently. Its unthinkable...
quote: Did you just ignore the part where he said he was cutting spending and entitlements? Like, $689 million from schools, $3.5 billion from health care? Is it reading comprehension, or willful ignorance?
quote: I read this article and think, 'hmm, a politician taking tough decisions in order to be fiscally responsible.'
quote: Would you really cut off health care to tens of thousands, or even hundreds of thousands, of people? Fire teachers, sacrificing the quality of education for students? What about emergency services - firemen, police, national guard? Cut welfare payments in winter, so people are kicked out on the freezing streets? It's no easy choice. Where would you cut spending first?
quote: Provided an unlimited supply of Other People's Money to fund them.
quote: But this is yet another reason for a national sales tax (and massive reduction or elimination of income tax).
quote: A sales tax via the internet is coming, no matter how hard we try to stop it. As goods and services move more and more to online based businesses, governments are missing out on a big piece of the action.