A Tax on ITunes Downloads?

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(Sacramento, CA)
Friday, March 14, 2008
Democratic Assemblyman Charles Calderon says California tax law is lagging behind the changing technology and the new economy: “You can buy a CD from Wal-Mart and you pay tax on it, but if you go to the Itunes and you download it, you don’t pay any tax.” He’s pushing a bill that would require the State Board of Equalization to look into the economic impact of collecting such a tax – and draft regulation to do so. But Republican Assemblyman Guy Houston says it could cause people to make fewer digital media purchases: “it’s an additional tax and that is going to discourage innovation, discourage commerce in California. The bill does not require Republican votes. But it would require Governor Schwarzenegger’s signature – and he’s been opposed to tax increases.