New York State Budget Relies On Entertainment Tax 655
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."
Easy Remedy for Those Looking to Avoid (Score:5, Informative)
On the positive side (Score:3, Informative)
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.
Re:Easy Remedy for Those Looking to Avoid (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. :(
Re:Issues (Score:3, Informative)
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.
Re:Easy Remedy for Those Looking to Avoid (Score:3, Informative)
And Amazon or some other online retailer will have to be the ones to do it.
While it is fun to imagine powerful corporations ratifying our collective will as directed by their testosterone level, for them it will come down to a simple business decision. If the impact of complying with the law (or the risk of not) is greater than the cost to litigate it, they'll litigate it. Imagining any other motivation for a business is self deceit.
Re:Less Government for Less Money (Score:3, Informative)
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.
Re:Easy Remedy for Those Looking to Avoid (Score:3, Informative)
First, sales tax is assessed based on delivery address, not billing address. This may be hard for NY to deal with, since online delivery means they'll need to map IP address (or customer account) to physical address.
Second, by doing that, you're committing tax evasion. You are responsible for use tax on those items you use that are taxable where you use them, but you bought them where they were untaxed, or taxed at a lower rate. Sure, this is often overlooked, and states (and cities) have a hard time enforcing it...
I just thought I'd mention those two items, since you were promoting tax evasion in your post... wanted to make sure that anyone choosing to follow your advice is aware that they would be committing a crime.
On a personal note, I think it's immoral to evade taxes anyway, since assuming you live in NYC, you're reaping the benefits of government services while freeloading off of those who actually pay their taxes.
Re:A government in its death throes (Score:4, Informative)
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.
Re:NYS driving away everything in their own region (Score:3, Informative)
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!
Re:Easy Remedy for Those Looking to Avoid (Score:3, Informative)
Re:What a moron (Score:3, Informative)
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.
Re:Taxing consumption? (Score:3, Informative)
With a net loss in tax revenue.
Re:Whaaambulance (Score:2, Informative)
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.
Re:Easy Remedy for Those Looking to Avoid (Score:3, Informative)
It's as if the don't know how to do what every American family does every day - pinch pennies & cut spending.
Paterson is trying to do that. I commend him for his efforts even though I work for a health care facility that receives >90% of our funding from Albany. We could be in for some hard times if the cuts are aimed at OMH. But I don't care -- New York State has ignored fiscal reality for far too long and it's time to rein in spending.
Whether or not the legislature actually goes along with it is a different matter altogether. I foresee another late budget and a lot of fighting in Albany in the months ahead. At least they won't be able to blame partisan politics this time -- the Democrats control both chambers now -- it will just be good ole fashioned greed.
Re:Whaaambulance (Score:5, 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.