The tax will be per GB (about 3 euro, so if you're buying a 60 GB iPod, it mean you'll have to pay an additional 180 Euro, roughly $240).
The reason is to compensate music distributors for illegal downloading of music.
But, if you only rip your own CDs, or legally download music, bought or free?
That would mean you'll pay for that music two times?
Wouldn't that have an opposite effect. If you know you've already paid for the music, through the tax, wouldn't that encourage people to download illegal music, instead of buying music?
Personally, I wonder if it would be possible to sue the record companies for charging recordings twice, or 3 times, if you upgrade to another carrier. Such as buying a CD of an album you have on Vinyl, or going from CD to SACD/DVD-Audio, since you have to pay the same price as everybody else, who's buying it for the first time (even if the price of the new format includes their whole cost for the music, including the cost of recording the music)?