IPod owners in New York US seems have to spend more money if they want to download MP3 file. The New York Governor, David Peterson submitted a tax increase to overcome a budget crisis (SMH, Dec 19th 08). IPod tax will also include e-books downloading and other entertainment services such as digital photos and video. IPod Tax is one of 137 postal which planned to be applied on government budget in the years 2009-2010.
Since the financial crisis, especially in the property sector credit is estimated the New York Government has lost fund of USD 15.4 billion. To cover the financial deficit, Paterson plans to increase taxes. New York became the second country after New Jersey, which has first imposed the tax policy on digital downloads. As market responses, many trade organizations believe the rate would increase the number of piracy in digital services.