Sign Maryland Banking Notice To Quit Now

Industry sign banking maryland notice to quit now

so tell us how this would work does it have to do with maryland specific transactions and how much revenue do you intend to raise uh well good afternoon it's a pleasure to be here with you and i think as you all have been discussing you know the world is in this moment of of significant technological reform and i think states are now asking the question of how do we capture the externalities that have been created it's wonderful the innovation that's been that that's been launched here in the united states the beauty of capitalism and innovation the challenge is uh we're not seeing the contribution that we would traditionally expect from from companies who are benefiting from the public investments that we've made over time in public education and public health and in public safety and so states are now forced with this question of how in this new economy with these new entities these new corporate entities that have been built in the last 20 years how did they participate and so what this bit what this piece of legislation does is say that the nexus between the state of maryland and these large uh platform are the digital ads that are being placed in maryland on devices in the state of maryland and so what we have done instead of a sales tax transactions we've said uh we are uh aggregating the the estimated amount of advertising revenue that would be derived from the state of maryland based on advertisements promoted and and shown in the state of maryland and then we put a gross receipts tax on that amount ranging in a progressive way from two and a half percent up to ten percent based on global ad revenues so how does this compare with the way that maryland taxes other advertising transactions whether they be billboards uh television print and so forth so this is really focused on the platform based ads uh you know this is something that didn't exist 20 years ago and so maryland is is looking at other examples uh if you look at what happened in south dakota uh with the weight fair case sales tax wasn't applied for out-of-state sellers um the supreme court after a decade stepped in after south dakota moved forward and now almost every state in the union is uh using uh the the benefit that has been created by online sales and there are now uh aggregate uh marketplaces where those sales tax from out-of-state sellers uh when it is being benefited in the state is now going to that state this is a it's a novel question because these are brand new industries when it comes to state taxation models senator good morning it's deirdre we've seen billions in penalties and taxes heaped on the tech giants over in europe but they've you know basically amounted to speeding tickets they haven't led to any real structural change why will your tax or how might your tax be different well i think at the end of the day uh all of these platforms have benefited from the public investments that have been made in state across the country but i can only speak of course from my perspective here in the state of maryland uh we have a great public education system but we are trying to make it better and so we launched a three-year plan to review public education but we have to fund the investments a full day pre-k ensuring that teachers are treated like professionals making sure that we have real pathways through and to college that costs money and these platforms have benefited from our prior in investments in those public systems and we think that they should also contribute to the ongoing building of our civic society that's not only in our interest here in the state of maryland it's in the platform's entrance as well uh so that their their platforms can continue to be consumed by people in the state of maryland uh effectively shepherd smith here thanks for watching cnbc on youtube