US | California Broke California May Tax Beer, iTunes, Sex Toys Partisan battle heats up as budget shortfall looms By Nick McMaster Posted May 9, 2008 2:43 PM CDT Copied Apple iTunes Gift Cards on display at Best Buy in Mountain View, Calif., Thursday, April 3, 2008. (AP Photo/Paul Sakuma) A $1.80 tax on every six-pack of beer. An iTunes sales tax. A 25% tax on sex toys and pornographic entertainment. These are just some of the more creative measures put forth by California's Democratic lawmakers to close a budget shortfall estimated at $20 billion, the Los Angeles Times reports. The Dems face stiff opposition from Republicans, who have vowed to stop any tax increases. But the economic reality remains: "If we don't do some of these things, we are going to have to cut nearly $5 billion out of schools,” says Charles Calderon, chairman of the state’s revenue committee. Read These Next Republicans sweeten the deal to end the shutdown. MTG breaks with Trump on grocery store prices. A man digging a pool in his yard made quite the lucrative find. Prince Harry is sorry about wearing an LA Dodgers hat. Report an error