News and Sports

Tax

now browsing by category

 

Connecticut Looking To Tax Social Media Ads

Connecticut legislators recently proposed a tax on social media ads sold by big platforms like Facebook, Twitter, which a lawmaker stating that it could create $250mn worth of windfall.

Notably, the bill has gotten support from both sides of the aisle, with Rep. Sean Scanlon (D-Guilford), and Rep. Holly Cheeseman (R-East Lyme) backing it.

The legislators didn’t specify how much ads make in the state, but they did acknowledge that they make a lot, especially in the midst of the pandemic.

Cheeseman filed it in early January 2020, just a few weeks ahead of the Internet Association, NetChoice, and the US Chamber of Commerce asking for a court injunction against a Maryland proposal that functions similarly, which was enacted via a gubernatorial veto. The Maryland bill would tax online ads in the state with expected revenue of $100mn.

The Internet Association’s 40+ members include big names like Amazon, Google, and Facebook.

The Internet Association stated that such laws would likely be in violation of the federal Permanent Internet Tax Freedom Act, which limits the amount of taxation of digital revenues, while implying that the association could sue.

The trade association stated that they’re not opposed to taxation merely that these moves were in violation of PITFA.

Connecticut Sen. John Fonfara, (D-Hartford) called foul of this move, saying that this is a classic move from the tech industry, where they call on Congress to preempt something, force cooperation but don’t actually cooperate in order to basically stonewall such efforts.

Such a tax would affect people invested in king kong marketing agency review and marketing, and time will tell if the proposal goes through in the face of all the trade associations lobbying against it.