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 The latest in the generation wars: the 'Gen Z stare.' Some tourists may ditch their US travel plans after this development. This is why you don't wear metal in MRI rooms. Latest tip for a longer life: 'move or die.' Report an error