Just days after Maryland became thexofirst state in the country to levy digital advertising taxes targeting Big Tech, lobby groups representing companies such as Amazon, Facebook, Google, are trying to stop it.In the lawsuit filed Thursday, groups accused that state law They also accused them of discriminating against interstate trade and interfering with foreign affairs, arguing that the previous federal government had opposition to interstate trade and interfering with foreign affairs. Countries that charge taxes on US digital platforms The lawsuit filed in the Maryland federal district court is being led by a number of lobby groups, including the US Chamber of Commerce and the Internet Association, the latter being formed by Google, Amazon, eBay and Facebook.
The Washington Post was the first to report the case.The digital advertising tax is illegal and should be canceled," plaintiffs attorney Stephen Kranz of McDermott Will & Emery LLP said in a statement to CNN Business. Will go along that road too "
The bill, which came into effect Friday after the state's Senate voted to lift the governor's veto, is believed to be the starting point for similar legislation across the country. The new taxes come as policymakers target the economic dominance of larger technology platforms, some of which have created massive digital advertising businesses.The bill is expected to increase by about $ 250 million in the first year with educational income. Senate President Bill Ferguson (D), the lead presenter of the bill, is a former American language teacher.
Although this is not surprising But it's disappointing to see these companies spend millions on high-powered lawyers rather than paying their fair share. Ferguson said in a statement given to CNN Business Thursday. “For two decades, these companies have grown exponentially by leveraging. The state's privilege benefits from an aggressive, unprepared collection of personal and personal information about Maryland residents and independent drivers of Maryland's investment in infrastructure. Our citizens All of this while not contributing to the future of Maryland residents.Ferguson said the bill targeted companies making more than $ 100 million annually from digital ad sales. Facebook and Google generated $ 84 billion in digital ad revenue and $ 147 billion last year, according to Ferguson. No. By making corporations fairly liable for revenue they earn that does not derive from their activities in Maryland, the law The complaint "controls, punishes and burdens" corporate businesses outside of Maryland, according to the complaint.Last year, Maryland Attorney General Brian Frosh said: "There is a risk" that the court will overturn the law. But he believes that the draft law "Not clearly contrary to the constitution
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