The recession has led to a lot of changes. One of these is a search for new ways to earn revenue for the government. People who download music onto their MP3 players may soon see a tax on their downloads in addition to the amount they already pay. Governor David Paterson has put forward a proposal to levy what is now being termed as the iPod tax. The tax amounting to 4 percent on MP3 downloads is meant to ease the huge budget crisis on the government’s shoulders.

 Ebooks, videos, photographs and such digitally delivered entertainment services are also subject to the proposed levy. This tax is among a whole host of new levies being put into force by the goverment. These will be a part of the 2009-10 budget and will need to be approved by the state legislature.

Due to the loss of earnings from Wall Street financiers the state earns $15.4 bn less than before. In trying to close that gap, the government risks the voters angst. The charge of sugary soft drinks is an innovative part of the strategy. This tax is also referred to as the obesity tax. Taxi rides, cigar, beer, petrol, manicures and massages and some such other services are likely to be costlier.

New Jersey has imposed such taxes earlier. Is this another tax that will lead to an increase in piracy and thus be counterproductive, giving lower revenue in the long run?