New York Governor wants to impose an iPod tax

New York Governor David Peterson wants iTunes buyers to pay more than $0.99 per song. Record labels tried this earlier but they failed. The New York state used to get a larger number of tax from Wall Street but as most of it is gone now, the tax have also decreased. The budget gap has increased to $15.4 billion and in order to minimize it, Paterson suggested 88 new fee and taxes. Among them is an iPod tax which will be implemented on the sale of downloaded music and on rest of the digitally delivered entertainment services. According to Paterson:
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.
Well I think that the gap of $15.4 billion can be minimized but it cannot be completely closed. Whatever the policy regarding tax collection is made, it shouldn’t affect the buyer on a larger scale, because it will lessen their buying power and ultimately they will stop buying.