If adults can exploit the Internet to make millions off the cuteness of their children, why shouldn’t the government exploit the Internet to fund its myriad programs?
That appears to be the thinking behind a recent proposal in Maryland.
Maryland State Senators Bill Ferguson and Thomas V. “Mike” Miller Jr. have introduced a bill to tax digital advertising. If passed, the plan would raise more than $100 million per year and make the Old Line State the first in the nation to raise revenue by taxing online advertising. The revenue would be used to fund Maryland’s education program.
Senate President Bill Ferguson commented, “Massive technology corporations have ballooned in size and influence over the last two decades. This legislation starts to make sure that these corporations pay their fair share in contributing to building our state’s core educational institutions.”
Other states are taking somewhat different approaches to mine the Internet’s gold. A Nebraska bill would sweep internet ads into overall sales tax. New York plans to tax Internet companies on the personal information they collect from any state resident who visits their sites.
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Opponents also say the tax would violate the Internet Tax Freedom Act. (Of course, those of us who live in states like Wisconsin know that not everyone in America has benefited from that piece of legislation.)
And working out the details of an Internet advertising tax would be complicated. It took years and a Supreme Court ruling to allow states to collect sales taxes from all online purchases.
But hey, where there’s a tax will, there’s a way, right?
Will an Internet advertising tax stop with the states? Maybe. Maybe not. The Feds are listening.