UDATE: With Calderon's party affiliation. Apologies for the initial oversight -- it wasn't intentional and it certainly doesn't reflect my personal political leanings.
Does the name Charles Calderon ring a bell? He may not be familiar, but anyone who buys digital downloads probably isn't crazy about the guy.
The democrat California assemblyman introduced the controversial "iTunes tax" bill (AB 1956), which was shot down in the spring. The bill basically called for an added tax on digital media sales, and asked the Board of Equalization to declare digital content taxable.
The bill didn't get through the first time, but Calderon hasn't given up on the dream. He introduced yet another iTunes tax bill for consideration -- this time, he introduced it (ABX3 22) during the extraordinary session, at a time when the state is embroiled in a budget crisis. One key difference between this bill and the last one, is that because it was introduced as a special session bill, there's a lot more time for it to get shot down.
The fundamental problems with the proposal are all the same. For one thing, it would penalize the few rare customers who legally buy movies and music online while file swappers would get away scot-free. It could also push entertainment companies to flee the state.
Aside from the problems with the bill itself, Calderon also took some heat for the way he tried to get the tax approved -- he basically circumvented the state legislature by asking the Board of Equalization to write up the regulation. In fact, one member of the BoE -- San Francisco democrat Betty Yee -- called the bill offensive.
Calderon earned equal ire from republicans, too -- California Sen. Tom Harman said the tax is still "a terrible idea," and criticized Calderon for trying to sneak it past the legislature, calling it a "cynical hijacking" of the legislative process.
"California has a spending problem, not a revenue problem. The iTunes and Internet tax bills illustrate a complete disregard for sustaining a healthy and vibrant business climate in California. These measures stem from an arrogant assumption that the government must find a way to tax because of overspending legislators' own fiscal irresponsibility. In order for our state to retain our global leadership edge in digital media and the online market, we must maintain competitive pricing. This measure penalizes companies who operate and provide jobs in California by crippling them with added taxes," said Harman, by e-mail.
For his part, Calderon says he just wanted to keep the bill around so that it's in the forefront of legislators' minds.
Photo: Flickr/Vidiot
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