A California legislator from southern California by the name of Charles Calderon wants to tax iTunes. His thinking is that this would be a great way to pay off the $8 billion dollars in over spending the state is facing. Oh wait. It’s not over spending. It is called a ‘shortfall’. Assemblyman Charles Calderon, D-City of Industry, has meet with strong opposition to his proposal.
In a Silconvalley.com article it states:
“The notion of taxing tangible, physical property is really an industrial-era construct when we made widgets and sold widgets,” Calderon said Friday. “Now it’s not about widgets, it’s about information, and selling information and moving information.” The Board of Equalization believes state and local revenues would increase by about $114 million a year, but Calderon’s estimate, which he said includes pornography downloads, is about $500 million.
His bill, AB 1956, comes as Apple reports that its iTunes store has leap-frogged over Wal-Mart to become the top music retailer in the United States with more than 4 billion downloads sold.
This is a good way to run technology businesses out of the state of California. Hopefully the voters will see through this ill formed plan.
What do you think? Should we tax iTunes and online pornography? Should all sales on the Internet be taxed as well?
Full story is here.
[tags]california, lawmaker, itunes, calderon, taxes, pornography, debt, 4 billion downloads, [/tags]