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‘Blind Willie’ Paterson Wants to Tax teh Online Pron!

All the coverage i’ve been seeing and reading involving this: TAXXX SPARKS A FUROR has been more interested in the pron aspect, but missing the biggest reason this is an enormously self-defeating idea:

The Paterson administration wants to expand the state’s 4 percent sales tax to all digital purchases, from music downloads to e-books to movies if the retailer has some kind of presence in New York state.

The 4 percent would also be applied to any subscription service that provides unlimited content for a monthly fee.

You savvy that? Anybody who has some any kind of “presence” in NY state will be affected if this idiocy passes. In one fell swoop, this scheme would chase many of those retailers across the border, and also put the hammer to any in-state hosting companies whose servers are home to these spiffy new sources of tax dollars, as their clients abandon them and move their web sites to more data friendly states.

If this becomes law, small business owners like Your Truly are screwed. My servers are in Delaware, but I’m here, so me and Wife™’s plan for Her newly-minted website to offer (for a fee) downloadable white papers and templates, concerning technical communications, either has to be trashed, or we’ll be forced to move out of New York… which is already on the front burner.

Do ANY of the dumbasses in Albany realize the idea is to make the economic landscape more attractive, so as to entice businesses to relocate here, instead of adding another reason for existing businesses to flee? If there is gonna be an extra 4% tacked on every transaction just because your located in New York, then why bother being in New York? A company the size of The Mothership would find it a nuisance, but they could deal with the costs involved in tracking this kind of crap… I sure as hell can’t. If Amazon has a regional warehouse or any corporate offices here (the latter is defintely true) they would be idiots to not pull up stakes.

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