iPod tax...salvation from a financial meltdown

Gov. Paterson of the great state of New York is getting creative in his attempt to close the budget deficit in the state. Just take a look at some of the tax proposals:

• An "iPod tax" that charges state and local sales tax for "digitally delivered entertainment services" - in other words, that new Beyonce song you download.
• State sales tax at movie theaters, sporting events, taxis, buses, limousines and cable and satellite TV and radio.
• Costlier driving with the repeal of the 8-cents-per-gallon sales tax cap on motor and diesel motor fuel, plus and increase in the auto rental tax.
• Tuition increases at SUNY and CUNY, $620 and $600 a year respectively.
• A 50 cent tax on cigars. The current tax is equal to 37% of the wholesale price, or 34 cents a cigar.
• No more sales tax break on clothes and shoes worth $110 or less, except during two weeks a year.
• Higher taxes on wine, beer and flavored malt beverages. He would also impose an 18% tax on non-nutritional drinks like soda.
• The rich would pay more for luxury items through an additional 5% tax imposed on cars costing more than $60,000, aircraft costing more than $500,000, yachts costing at least $200,000 and jewelry and furs costing in excess of $20,000.
• In addition, a host of a fees, including those related to motor vehicle licensing and registration, parks and auto insurance, would go up, as would various state-imposed fines.

These "unconventional measures", a term the Fed has coined, isn't likely to go over well with New Yorkers. Unfortunately, this type of tax plan is likely to become widespread across the country as state and local governments struggle to stay above water.

However, there will come a time where the people say "enough is enough."