The New York Governer – David A. Paterson – has unveiled his plans to make internet downloads taxable by up to 4%.
The tax would apply to downloads of software, music, videos, books and other content. Paterson’s spokesperson says the tax is not focused on content and would apply to any download.
The governor thinks the tax could help close the state’s 15 billion dollar budget deficit. Critics believe the move would drive off business from the state. Around 20 US states already apply tax to some type of downloads, such as music on iTunes, and more states seem keen to cash in on downloads.
