"Taxing an entire online business model isn't going to solve its worst side effects, and highly profitable social-media companies will simply pass the cost of the tax down to smaller businesses that rely on social media to reach their customers."
"Social media and online platforms are huge sources of innovation, education and human connection. They're among the best ways for a mom-and-pop startup to get the word out about its new products. A bill as blunt as Utah's fails to differentiate between the good and the bad."
"If others follow, free online platforms would feel pressure to rely less on ad revenue and move toward subscription-based models. This would fragment social media further and might elevate less responsible platforms that don't have the scale or scrutiny afforded by bigger companies."
Utah lawmakers are advancing legislation to tax large social-media companies generating significant revenue from targeted advertising at 4.7%, with revenue directed to child literacy programs. Proponents argue this punishes practices treating children's attention as extractable assets. However, the tax will likely fail to achieve its stated goals while causing substantial damage. Tech giants will pass costs to smaller businesses dependent on social media marketing. The blunt approach doesn't differentiate between beneficial and harmful aspects of online platforms. Maryland already implemented similar legislation. If other states follow, platforms may shift toward subscription models, fragmenting social media and potentially elevating less responsible competitors lacking scale and oversight.
Read at The Washington Post
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