I received this email today:
[quote]
The New York state legislature is currently proposing a bill which would impose a tax on digitally downloaded products, known as SB 60/AB 160. The timing could not be worse. This bill would harm New York consumers - including you - by raising prices at exactly the time that so many are feeling the repercussions of the economic fallout.

Speak up now and tell the New York state legislature "no" on SB 60/AB 160.

One result of this legislation will be to suppress consumption, which will cause layoffs at effected businesses, including the video game industry, which employs many New York residents.

Tell your representative to vote "no" on SB 60/AB 160.

In the midst of a financial crisis, bills such as this are precisely what consumers don't need. Please take the time to write your state representative, and also help spread the word by telling your friends in New York State.

Sincerely,

Hal Halpin, pres.

Entertainment Consumers Association (ECA)
[/quote]

My biggest issue with this is that its constitutionality may be questionable, as regulating interstate commerce is reserved for the Federal Government.

I disagree with the form letter that such a tax would increase piracy, as someone willing to pay $50 for a game will most likely pay $52. Furthermore, as far as jobs in the state, retailers that are already at a convenience disadvantage, possibly lose more sales dollars to online distribution because of the state sales tax. Aren't retail jobs important? I'm almost positive there are more people employed in any one major game retail chain than in game development.

Overall, public awareness on this is low. All the media has talked about is taxing porn, and I doubt there will be a large public outcry defending "porn connaisseurs" and gamers.