Government Alert

March 2, 2020
Rebecca Snyder and Matthew McDermott (AAF Baltimore): Taxing digital advertising and services to pay for Kirwan will harm Maryland’s economy

Maryland legislators are proposing significant new taxes to pay for the Kirwin Commission’s education reform recommendations. Delegates and senators are mulling a new digital advertising tax (SB 2 / HB 695) and an expansion of the sales tax to include professional services (HB 1628).

Where does that leave Marylanders?

Maryland citizens will be left footing the bill for these additional taxes. It is unrealistic to imagine that businesses can singlehandedly absorb substantial new taxes, on top of other recent legislative mandates, without passing along at least some of those costs to consumers. Of special concern is the focus on taxing ads and advertising services.

Advertising connects consumers to products and enables businesses to grow. Taxing advertising and advertising services will choke economic growth.

Read the full article at the Capital Gazette >>>

Return to list