Proposed Maryland Tax on Digital Advertising Is Problematical

As the Maryland General Assembly gets geared up for its 2020 legislative session, a bill has been introduced by the current and former Senate majority leaders to tax online ad revenues. The sponsors say that such a digital advertising tax could raise $100 million a year.

It's true that Maryland's fiscal situation could use shoring up to reduce the perennial "structural deficit" that characterizes Maryland budget. But the proposed digital advertising tax is problematical for several reasons relating to sound tax policy.

For a good discussion, see this piece by the Tax Foundation's Ulrik Boesen.

We'll likely have more to say about this as the legislative session progresses.