New York governor David Paterson’s first state budget threatens to affect just about every New Yorker. Even those online. Paterson is asking for a so-called “iPod tax” on downloaded music as one of 137 revenue-raising proposals to close the largest budget deficit in the state’s history.

Paterson proposed Tuesday a 2009-10 budget that would increase spending by 1.1%, or $1.3 billion, to create a $121.1 billion spending plan.

Haircuts, beer, cinema tickets, cigars, taxi rides, massages, and sugary soft drinks would also be targeted under the austerity budget aimed at closing the $15.4 billion shortfall caused by a collapse of tax revenues from Wall Street.

“The other day somebody threw a pair of shoes at President Bush,” governor David Paterson told legislators. “At the end of this budget presentation, if that’s the most severe punishment I get, I’ll sign for it now.” The proposed “iPod tax,” would tax the sale of downloaded music and other “digitally delivered entertainment services” by 4%, adding four cents to the cost of a 99-cent song for users whose iPod is registered to a New York address.

The idea was met with chagrin from many iPod fans. iPodmaker Apple made no comment. The “iPod tax” is one of a series of targeted measures sought by the governor in an effort to avoid broad-based tax increases, reported TimesOnline.

Among them is an unprecedented 18% “obesity tax” on sugary soft drinks. The tax would cover fruit drinks with less than 70% fruit juice, as well as “-ades, punches and certain fruit nectars.” Diet soft drinks would be exempt.

With one in four New York teenagers considered obese, the “obesity tax” aims to cut consumption of sugary drinks by 5% while raising $404 million in the next fiscal year.

Also hit by new taxes under the package would be “personal services” such as massages, pedicures and health-club memberships. All motorists would be required to get new “reflectorized” car licence plates at a fee of $25 each.

Paterson’s plan came under immediate fire from fellow Democrats and union leaders who accused him of making the young people and working families bear the brunt of tax increases.

The blind governor, installed after his predecessor fell victim to a prostitution scandal earlier this year, has battled a Democrat-led effort to raise the state income tax

on millionaires, arguing it would just force them to leave New York.