Minnesota Lawmakers Consider Tax On Social Media Platforms

• Minnesota Democrats person introduced a measure to taxation societal media companies based connected nan magnitude of personification information they cod from authorities residents. The connection could make complete $45 cardinal annually, pinch larger platforms paying up to $165,000 per month.
• Rep. Aisha Gomez and section organization leaders said nan measure would thief money authorities programs and reside nan effect of societal media connected children.
• Critics reason that nan measure could break national law, harm nan integer system and neglect to reside nan halfway rumor of personification consent.

Full Story

Minnesota Democrats person introduced authorities that would enforce a monthly taxation connected societal media companies based connected really overmuch personification information they cod from authorities residents.

The bill, introduced Wednesday, April 9, targets what lawmakers picture arsenic a business exemplary that societal media companies travel successful bid to profit from personification data.

State Rep. Aisha Gomez, DFL-District 62A, who co-chairs nan House Taxes Committee and is nan bill’s sponsor, described nan projected authorities arsenic “an excise taxation connected social media companies based connected nan number of Minnesota residents who usage their services successful a period whose information they are mining.”

Gomez said nan authorities is rooted successful nan belief that societal media companies make gross chiefly because of nan sheer number of group who usage their platforms and nan information that platforms summation from those users.

“Nobody is providing these ostensibly free services retired of nan kindness of their small billionaire hearts,” Gomez explained. “They’re doing truthful because they’re making a batch of money doing it.”

What are nan numbers?

Meta reported $62 cardinal successful profit from Facebook unsocial successful 2024, pinch $164 cardinal successful full revenue.

Under nan proposal, ample platforms pinch much than 1 cardinal progressive users successful Minnesota could salary up to $165,000 per month. Companies pinch less than 100,000 users successful nan authorities would beryllium exempt from nan tax.

According to nan Minnesota Department of Revenue, nan measurement could make much than $45 cardinal successful fiscal twelvemonth 2026, based connected astatine slightest 14 companies being taxed. All costs would spell into nan state’s wide fund.

But Gomez insists nan measure is astir much than revenue.

“It could effect children’s, you know, self-image and assemblage image,” she said, referring to concerns complete really societal media usage affects young people.

The measure has drawn support from organization leaders. Rev. Juli Thompson of St. Stephen Lutheran Church successful White Bear Lake, Minnesota, said nan taxation represents a measurement toward fairness successful nan state’s backing systems.

“Wealthy individuals and corporations person been manipulating nan strategy down our backs and are now paying acold little than their adjacent share,” Thompson said. “Taxes are 1 measurement nan authorities provides adjacent support to everyone surviving successful Minnesota.”

Critics definitive ineligible and economical impacts

But not everyone supports nan measure. Critics raised ineligible and economical concerns during nan bill’s hearing.

“In summation to nan economical harm that this measure could do, location are superior ineligible concerns,” said Deb Peters of Americans for Digital Opportunity. “It risks violating nan Permanent Internet Tax Freedom Act, and it whitethorn besides make america susceptible nether nan commerce clause, peculiarly by targeting internet-based activity successful a measurement that could beryllium burdensome for interstate commerce.”

Some lawmakers said nan authorities doesn’t reside nan underlying issues of personification information privateness aliases nan adverse impacts of societal media.

“I don’t spot immoderate relationship betwixt taking nan money that would beryllium collected from these services and utilizing it to woody pinch nan harmful bullying, nan net issues that you’re bringing up,” said Rep. Mike Wiener, R-District 5B. “This simply conscionable costs nan government.”

Others connected nan committee echoed concerns that nan measure whitethorn place nan truth that users work together to position and conditions erstwhile joining these platforms.

What happens next?

The measure has been publication successful some House and Senate committees and could beryllium included successful a larger taxation package later successful nan session.

Minnesota is presently facing a fund deficit, which is forcing lawmakers to see some spending cuts and caller gross sources.