New York Governor Kills Download Tax

ALBANY, N.Y. -- New York Governor David Paterson killed a proposed Internet download tax Wednesday, which had met with protests from consumers and businesses.

Other tabled taxes included ones on sugared soft drinks and personal entertainment and recreation, such as cable or satellite TV, attending movies, the theater, concerts, golf, skiing, and bowling, plus grooming like manicures. 

The so-called "lifestyle taxes" also referred to by some as "nuisance taxes," were originally suggested by the governor last December to bring in roughly $1.3 billion into state coffers, which he said will now be made up by Federal stimulus funds, according to the Lower Hudson Journal.

Patterson said Wednesday at a press conference he was taken aback by the roars of public protest.

The download tax -- the "iPod tax" to some -- would've hit services based in the state offering music and video content via the Internet, including the adult industry.

Higher taxes and fees will be attached, however, to utility bills and health care, which has drawn the ire from other quarters including the health care industry.

Both Democrats and Republicans opposed the lifestyle taxes.

"The last thing we should be doing is taxing families right and left on the seemingly small things that add up fast," said Democratic Assemblyman Frank Skartados, according to the MidHudson News.

Some officials said not enough taxes were tabled.

"This was certainly an about-face, but only by a few degrees," said Republican State Senator Andrew Lanza, reports Staten Island Live.

"The soda tax was just absurd, but they only eliminated the most glaring taxes because the citizenry rebelled. They still want property tax increases, which will affect Staten Island, car insurance taxes and taxes on health care services that they call assessments."