Posted on 02/13/2021 5:22:51 AM PST by Oldeconomybuyer
State lawmakers across the country are exploring a range of new taxes targeting Amazon, Facebook, Google and other Internet giants, seeking to capture some of Silicon Valley's eye-popping profits and soaring share prices in the midst of the coronavirus pandemic.
Even as the U.S. economy struggles to regain its footing, some of the tech industry's most valuable companies have thrived as Americans spend more time - and money - shopping and communicating on the Web. The disparity has caught the eye of policymakers across the United States who increasingly say it is time for the Internet's cash-flush companies to start paying their fair share.
The clash carries immense national implications at a time when states are struggling to balance their budgets and front the ever-rising costs of a national public-health emergency. The scramble to raise new money - and the newfound interest in taxing tech - reflects a growing belief among government officials nationwide that Silicon Valley for too long has failed to share the bounty of its unrivaled economic growth.
"Right now, they don't contribute," said state Sen. Bill Ferguson, a Baltimore Democrat, the chief sponsor of Maryland's tax proposal. "These platforms that have grown fast, and so enormously, should also have to contribute to the civic infrastructure that helped them become so successful."
Kansas Gov. Laura Kelly, D, in recent days has proposed raising $97 million in new taxes that could apply to online streaming services such as Netflix and Hulu. Democratic lawmakers in Washington state, meanwhile, have sought to tax companies that sell consumers' personal data as part of a broader push this year to protect state residents' privacy online.
(Excerpt) Read more at sfgate.com ...
Rough translation, taxes on big tech get passed on to consumer. Governments waste transfer of capital
Good! Those companies are at war with us. As far as I am concerned they can go broke. I hope they are destroyed by taxes. They lost the right to any help from us.
What’s comical is that those states caused this problem with their stupid lockdowns (and it’s just ramping up - see tag line) and now they want to save “us” from their incompetence with more incompetence.
This is just a new form of tax the rich. Remember, the IRS and federal income tax started out as “tax the rich”.
And here we are.
They’ve actually already pulled the no-nexus state sales tax bit on internet sales, where you pay state sales tax on purchases even if the company doesn’t have a footprint in your state.
It’s all fun and games until they flee CA and move their headquarters and employees to your neighborhood.
Some of these taxes though do appear to be geographically independent though. I hope it doesn’t provide them a mote to defend from smaller competitors.
You’re 100% correct in that the taxes will be passed through to the consumer. The corporations/shareholders will get richer and the politicians can boast that they are protecting the little people by going after said folks when in fact they aren’t and are probably receiving “election” donations from them.
The Netflix tax is why we buy DVDs/Blurays.
Wonder how much is politicians trying to recoup taxes lost due to cord cutting...
Honestly, the big tech leviathans don’t produce anything that we must have. Google, Facebook, and Amazon rely HEAVILY on advertising dollars. They don’t actually produce a product. Microsoft, on the other hand, is a software development house and produces goods and services, so if they’re caught up in this, yes, I could see some cost increases depending on where the taxes are levied.
No company should be taxed period. IMO federal income tax is completely unconstitutional. Then to compound the issue and feed the fat piggy Government they treat a corporation as an individual and tax it as well. It’s theft pure and simple. Theft of one’s labor, liberty and services.
They also produce software and services such as Angular, React, AWS data hosting, firebase...
Amazon has thrived in the last year. I would imagine they would pass the tax on to consumers. Although google, Facebook, Twitter cannot.
The companies will not pay the taxes, the consumer will. The company will just pass on the cost as they always do.
Wow. You don’t think you pay taxes on dvds? Plus at 20 dollars a pop. Netflix is around 8 dollars a month including the tax. I don’t think I’d hire you as my financial planner. Lol.
They don’t understand that
I saw where Dick Durbin wants to tax garage sales
Finally, a tax I’m in favor of.
Not sure how we’d pay the military. If we had to have an income tax, I’d rather it go exclusively to the military. So 700 billion to military and 50 billion to the VA. Divide that up per person and that’s all we should pay. Everything else goes to states. Congress really wouldn’t be needed anymore. But if they do then have a once a year vote on military funding.
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