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New York’s Governor called for a host of new fees and taxes yesterday, including an “iPod tax” that taxes the sale of downloaded music and other “digitally delivered entertainment services.”

The Governor’s new budget for 2009 includes 88 new fees plus a bunch of other new taxes on anything from soda, beer, wine and cigars to movie tickets, taxi rides, and massages. According to the NY Daily News, It would also extend sales taxes to cable and satellite TV services and remove the tax exemption for clothes costing less than $110. So no more grabbing a box of stogies and hitting the local cinaplex for me, I guess...well, assuming I lived in New York. Which I don’t.

That the “iPod tax” actually refers to Apple’s popular product by name would cause one to infer that Governor Paterson has it out for frequenters of the iStore. In actuality, however, MacWorld points out that the title is a little misleading.

It’s not a tax on iPods, but rather the levying of state and local sales taxes for “digitally delivered entertainment services.” The iTunes Store would seem to be a prime target there, but Amazon, Wal-mart, and other retailers would take a hit from the proposed tax as well.

We’ll see if Wal-Mart and the rest flex their mighty lobbying muscles on this. While at least 16 states plus DC already have taxes of this nature, California shot down a similar proposal earlier this year.

New York governor proposes digital download tax [MacWorld]

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Posted by Corey Himrod | Permalink

Tags: sales, california, tax, new york, music, lobbying, downloads, fees, budget

57 comments

WAL-MART AND THE ‘POORING OF AMERICA’
I’m not sure where the phrase “Pooring of America” came from, but it’s perfect to explain Wal-Mart’s effect on working families. Seeking Alpha ponders why Wal-Mart and McDonald’s are doing so well right now.

What are McDonald’s and Wal-Mart Telling Us? [Seeking Alpha]

I am very intriqued by our top 2 choices for the “Pooring of America” trend - Walmart (WMT) and McDonalds (MCD) - what exactly are the charts above telling us?  If we are to enter a long drawn-out recession, which I have believed, these seem to be screaming buys here. The only question is credit - how does a lack of credit potentially hurt both. They are not expanding a ton, in the U.S. at least - perhaps with Wal-mart it’s financing of inventory, but I cannot wrap my mind around this behavior.

Wal-Mart gets downgraded while stock up in 2008 amid the turmoil [BloggingStocks]

Will Wal-Mart weather the storm? To a point, it already is. Sure, all retailers are expected to have a dismal holiday season this winter, but Wal-Mart will do better than the competition. It has more stores, more pricing leverage and more wherewithal to hold customers hostage with lower prices and inventory turns at a time when it’s needed most. Perhaps we’ll see WMT return to the $60/share level by Thanksgiving—if not sooner.

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SANTA TO WORK LONGER HOURS WITHOUT OVERTIME THIS YEAR
Wal-Mart announced this week that it will start cutting toy prices almost three months before Christmas. To which Santa Claus replied, “Seriously?”

Wal-Mart starts the discounting early this year [BloggingStocks]

According to The Wall Street Journal, “Wal-Mart Stores, Inc. said it will cut prices on some of the most popular toys and speed up the opening of Christmas shops in its stores nationwide as it tries to lure budget-conscious shoppers and jump start its biggest selling season.”

Wal-Mart: Coal In The Retail Industry’s Stocking [24/7 Wall St.]

Wal-Mart’s action is a typical method for burying the competition. It can afford almost endless inventory build-ups for the busy shopping season. It can pull in the very modest amount that the consumer has to spend and leave other retailers with scraps off the table.

In which Walmart explains why we’re all doomed. [Writing on the Wal]

Obviously, I’m a masochist. I actually read Walmart’s press release on its early rollback of toy prices. While the Play-Doh Ice Cream Shop would be tempting if it weren’t Walmart we’re talking about here, I was much more struck by the survey results at the bottom of the document. Most notably:

Sixty-one percent of Americans do not plan on making cut-backs on how much they spend this Christmas season.

*Those who do plan on making cut-backs, plan on cutting back $50 or less.

Don’t you think that result seems just a tad self-interested? Why is that stat there if not to convince people to spend more whether they can afford to or not? I suspect Walmart has declared Christmas early because they’re afraid nobody will have any money left in December.

After the jump, Wal-Mart shuts down DRM music downloads, managers make up their own rules and 210,000 toasters get recalled.

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Posted by Alex Goldschmidt | Permalink

Tags: products, toys, prices, recalls, music, christmas, downloads, consumerist, tech

34 comments

One of the unique drawbacks of offering poor digital download services is that digital downloaders are, by definition, computer savvy and will not hesitate to lay the smack down about you on the internets. Case in point: Wal-Mart’s digital rights managed (DRM) music service. The retailer will be shutting down its servers sometime next week, leaving many who downloaded music from the site in the lurch. To say the least, Wal-Mart hasn’t won any fans in the process.

On the other hand, all of Wal-Mart’s other products fall apart eventually. We guess its digital downloads aren’t any different.

Wal*Mart shutting down DRM server, nuking your music collection—only people who pay for music risk losing it to DRM shenanigans [BoingBoing]

Hey suckers! Did you buy DRM music from Wal*Mart instead of downloading MP3s for free from the P2P networks? Well, they’re repaying your honesty by taking away your music. Unless you go through a bunch of hoops (that you may never find out about, if you’ve changed email addresses or if you’re not a very technical person), your music will no longer be playable after October 9th...Boy, the entertainment industry sure makes a good case for ripping them off, huh? Buy your media and risk having it confiscated by a DRM-server shutdown. Take it for free and keep it forever.

Walmart Shutting Down Music Store DRM Servers, Umpteenth Reminder to Not Buy DRM’d Content [Gizmodo]

Like Yahoo and MSN before them, Walmart is turning off its DRM servers on Oct. 9, effectively putting any DRM’d songs you bought from them into a cold stasis they’ll never wake up from, since they’ll become totally unmovable unless you circumvent the DRM.

Wal-Mart Pushes Customers Off DRM Fence [Wired Blog]

In other words, if you are going to spend money, please do not spend it at Wal-Mart’s music store, or any other whose backwards DRM policies may one day wipe out your money’s value by pulling the plug on its servers.

Posted by Alex Goldschmidt | Permalink

Tags: music, customer service, downloads, drm, user feedback

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