Your eyes on California Government

California still, despite its many problems and follies, is the global center of the Internet. Our companies here include Google, eBay, Apple, Conexant (Internet switches), and thousands more.

Public policy should be simple: more and more Internet! For everybody! Doing so makes California Internet businesses grow, thus broadening the tax base.

So, what do Democrats in the Legislature want to do now? You’ll never guess. Never. Ever. OK, a hint: They want to increase taxes.

On what? Can’t guess? Still can’t guess?

OK, I’ll tell you: They want to tax the Internet.

Reports the Bee: “The Senate budget committee estimates the state could generate at least $100 million annually.”

Can they really be that dumb? Yes, they can.

For you legislators out there, I’ll explain what would happen. You might bet your $100 million. But then other states, the U.S. government, and foreign countries would be encouraged by you to pass their own Internet taxes. Result: higher Internet costs. Less use of the Internet. Lower purchases of California Internet products and services. Which means fewer taxes paid by Californians.

I don’t know of any study, but if all those other entities start attacking the Internet, the hit on the California economy probably would cost the state treasury a lot more than $100 billion.

This is about as dumb as Michigan imposing a $5,000 tax on new cars to get out of its budget problems. But nobody in the Michigan legislature has proposed that. Only California has legislators with the mental capacity of a planaria.

– John Seiler