Canada issues levy on non-removable memory (for MP3 players)

I know this story is quite a bit old, but I really have to wonder how legal this levy is. http://www.cb-cda.gc.ca/news/c20032004nr-e.html "The Board also sets for the first time a levy on non-removable memory permanently embedded in digital audio recorders (such as MP3 players) at $2 for each recorder with a memory capacity of up to 1 Gigabyte (Gb), $15 for each recorder with memory capacity of more than 1 Gb and up to 10 Gbs, and $25 for each recorder with memory capacity of more than 10 GBs." It just seems to me to be a bit sketchy to tax intended illegal usage. I mean, that'd be like taxing condoms b/c of prostitution. Would something like this go over in the US? I wonder ... -- Adam