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California has a budget surplus of more than $12 billion. In a recent vote to tax the internet, every Republican voted against the tax. Fortunatrely, there are lots of Democrats in office in California, and they voted in favor of the tax. Hooray! I love the Democrats! We need bigger government and higher taxes!
http://news.excite.com/news/r/000530/21/economy-california-i nternet2
Calif. Assembly approves Internet tax measure
Updated 9:58 PM ET May 30, 2000
SACRAMENTO, Calif. (Reuters) - The California Assembly narrowly approved an Internet tax measure Tuesday that could rake in tens of millions of dollars for a state whose economic good times have been largely driven by high-tech.
The bill, which clarifies state law regarding the taxation of Internet purchases, comes as lawmakers across the country are grappling with similar issues regarding online sales.
The proposal must still go through the state Senate and Gov. Gray Davis, whose office has said the Democrat is generally opposed to the idea of Internet taxation.
"This bill is a clarification of existing law, and it's about fairness," said Democrat and Silicon Valley Assemblyman Ted Lempert, whose district includes many of the state's leading high-tech firms.
The proposed legislation would not tax sales from companies that have no bricks and mortar stores or warehouses in the state. But for firms that do, some sort of tax would apply.
This would affect businesses like book retailers Borders Group Inc. and Barnes & Noble Inc., which currently charge online customers no state sales tax in California, according to an analysis of the proposal.
Many high-tech businesses in the nation's most populous state have opposed the bill and it passed the Assembly with only the bare minimum 41 votes. No Republicans voted for the measure and nine Democrats abstained.
Republican Keith Olberg said the measure was especially onerous given that California is enjoying a state budget surplus of more than $12 billion.
"This bill will be a substantial tax increase on the people of the state of California," Olberg said.
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