New York download tax proposals would include porn
By John Lister
The dispute over proposals to tax digital downloads in New York has taken an exotic twist with the revelation that it would cover pornography as well as more mainstream content. That’s created a new argument from opponents claiming the tax would ‘legitimize’ porn.
Governor David A Paterson is calling for a four per cent tax on digitally transmitted content such as movies and music, which initially earned it the nickname ‘the iPod tax’. His office has now confirmed the tax would cover pornography sales, both online and through pay-TV services.
Local politicians now have an added argument beyond the straight fiscal policy debate. Michael Long, chair of the state’s Conservative Party, says taxing pornography makes it appear legitimate. “If you’re taxing it – how can it be wrong? I don’t know how you can sink much deeper.” Of course, that argument depends on whether you interpret ‘legitimate’ as referring to moral judgments or legal ones.
The proposals have brought together some unlikely allies. Long is joined in opposition to the tax by Shawna Lenee, runner up in Penthouse’s 2009 Pet of the Year contest, who the New York Post quotes as saying “We’ve had an adult industry in this country for decades, and now they want to tax us because of a deficit. That’s not at all fair.”
The tax would have a limited effect on internet firms, however. As well as only applying to sales to customers from New York, it would only be levied on sites based in the state. Even those firms which would be hit may simply move their operations to other states to save on taxes.
The New York government department behind taxation says the proposals aren’t intended as a moral judgement on either digital downloads in general or porn in particular. Spokesman Matt Anderson said it would simply remove a loophole that lets digital sales avoid taxation: “Regardless of whether or not an item is purchased at a brick-and-mortar store or online, it would be treated consistently.”
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