Why Is the State of Maryland Coming Down Hard on Tech Companies?
The state of Maryland is doing the unthinkable to tech companies. This is in light of the recent ads tax law that has been passed by the state policymakers in the state of Maryland. In response, major tech companies like Facebook and Google are lamenting the passage of this bill and imploring the federal authorities to have their backs.
Lawmakers Say Times have Changed and so should Taxation Model
The new taxation law is proposing that tech giants like Facebook and Google Pay returns for digital adverts run on their platform. However, the impact is only on adverts targeted at the Maryland community. However, there is still more to the selection of tech companies that are bound by this law.
Additionally, the companies in question should have an estimated annual advert revenue of no less than 100 million dollars. Top on the list of companies that fall under this category is Facebook and Google.
The lawmakers stress that times have changed and so should a newer taxation model be effective on these companies. The senate president of the state did infer that the digital industry has experienced remarkable growth as a result of the public and previous institutions and should be committed to paying their debt in this manner.
If operational, the ads tax estimate for Facebook will be over 80 million dollars. On the other hand, Google will exceed 150 million dollars.
How the Big Tech Corporations Are Reacting
It is anticipated that a series of legal battles will ensue if a resolution is not reached in time. This is considering how the major tech companies affected are lobbying against the law.
They stress that such laws are unwarranted and violate federal laws protecting the interest of the electronic media.
There is also apparently the fear that other states may look towards generating revenue in this manner if successful in the state of Maryland.