The state of Maryland is reportedly set to be the first U.S. state that will impose a tax on the sale of online ads. The tax will impact the Masters of the Universe, primarily Google and Facebook which hold the ad market in a duopoly that Amazon is only beginning to gain a foothold in, but critics claim the tax will be passed on, saying “This tax increase was historically shortsighted, foolish, and harmful to countless small businesses and employees, and Marylanders will remember it that way.”
NPR reports that the Maryland House of Delegates and Senate both voted this week to override the veto by Gov. Larry Hogan (R) of a bill passed last year to tax online advertisements. The tax will be applied to the revenue that companies such as Facebook and Google generate from selling digital ads.
The tax will reportedly range from 2.5 percent to 10 percent
