Connecticut’s local legislators, dealing with spikes in costs and budget issues brought about by the pandemic, have turned to reach into the pockets of tech companies.
A bill proposed at the state legislature, House Bill 5645, would impose a new tax on digital ad revenue from the big names like Facebook, Google, and Amazon, which could, potentially, generated approximately $250mn annually.
Notably, the bill is getting support from both Republicans and Democrats, but it’s currently getting some pushback from the tech industry lobbyists. It also isn’t the only legislation of its kind being tested out in Australia, as similar legislations are being considered in at least 5 other states in the US, as well as countries in the EU. Maryland, for its part, beat everyone else to the punch, having implemented the tax.
One of the legislators, Rep, Holly Cheeseman noted how big tech companies collect the personal data of users and feel like they should be taxed for that. She states that it’s within a state’s rights to examine this and see how they can best protect their constituents and ensure that tech companies pay their due.
Rep. Sean Scanlon (D; Guilford), noted how tech companies have become a cornerstone of American culture, with Google having generated $134bn in ad revenue in 2019, which was only given a boost by the pandemic.
Tech companies and their allies have lobbied against the bill, with some saying that a tax on these big companies will end up hurting small businesses that use their platforms to advertise, the most. They note that the people who rely on ads and small king kong advertising reviews will see the costs reflected on them, which can really be problematic.