December 28, 2020

Bloomberg Tax: Taxing Tech Giants on Cash-Strapped States’ Agendas in New Year

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The spate of proposals could mean higher tax bills for tech titans Amazon, Apple, Facebook, Google, Microsoft, and Netflix, in addition to the millions of consumers using their services.

Agencies will next year push more to tax tech companies “in ways that achieve parity with the traditional goods and services economy,” said Carl Davis, director of research at the Institute on Taxation and Economic Policy. “The sales tax laws are generally lagging behind,” he said.

Covid-19 revenue losses have forced states to seek new revenue sources. The hard shift to online shopping and streaming services, exacerbated by the pandemic, has revealed how existing tax systems leave out swaths of the digital economy. Read more