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Adult Content Chief Touts Teaming Against Proposed N.Y. Digital Sales Tax

25 Feb, 2009 By: Chris Tribbey

The founder and CEO of the world’s largest pornographic video-on-demand service wants to organize an Internet company task force to band against New York state’s proposed four cent sales tax on all digital purchases. “Innovation, initiative and reach, the hallmarks of successful online businesses, should be encouraged,” said Scott Coffman, whose company, Adult Entertainment Broadcast Network (AEBN), maintains distribution rights to the largest library of full-length adult titles in the world. “The tax proposals being advanced by New York’s Governor [David] Paterson are counterproductive. “Government needs to take a positive approach that will leverage the enormous potential of e-commerce to help turn the economy around. Together we can develop worthwhile approaches that will make more sense.” Gov. Paterson has proposes 88 new taxes to help close a $15 billion budget deficit, and the four cent tax would cover everything from a digital movies to software downloads. Coffman said he hopes to gather other companies — adult-oriented or not — that would be affected by the tax, in a group effort to oppose it. “Internet companies already pay their fair share of business tax. Don’t think for a minute that this is simply a tax on business,” he said. “We need to encourage more Internet purchases of goods, services, information and entertainment. This will put more people to work, many of them in well-paying jobs with a future.”

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