So, if I understand what you are trying to say, it's a proportional tax. It is not progressive unless for some reason you view the "cliff" this way, though it

So, if I understand what you are trying to say, it's a proportional tax. It is not progressive unless for some reason you view the "cliff" this way, though it is not a true cliff in the traditional tax sense, since exceeding does not remove the benefit of the 1m/year download credit. My argument that it is regressive is not based on it being "bad for the small guy", rather I was just pointing out that, as a regressive fee when looking at revenue/download, it will be very bad for small business.