They’re Coming After the Internet

In an attempt to bring in additional revenue, New York is considering taxing Internet downloads.

NEW YORK — Faced with one of the bleakest financial pictures in memory, New York Gov. David Paterson on Tuesday released a $121 billion proposed budget that would hit the entertainment industry and consumers in the pocketbook.

The budget would tax digital downloads such as iTunes movies, TV shows and music and would end sales-tax exemptions on movie tickets, cable TV, satellite TV and radio, and entertainment and sporting events. All have been exempt from the state’s sales tax.

But things quickly have reached crisis level in the Empire State: There’s a $1.7 billion shortfall in the current budget and a deficit of nearly $14 billion for the next year. Most of that can be blamed on the economic crisis, which has reduced revenue the state receives from Wall Street.

Will it pass? Will other states follow suit?

and the even more frightening question:

Will the government try to regulate online content?

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