Importance of Protecting Access to Digital Advertising

Over the last decade, America’s economy has been transformed by technological advancements, and nowhere is this more evident than with digital advertising. Allowing businesses of all sizes to access online platforms and reach new customers has leveled the playing field, giving start-ups, local newspapers, and countless small businesses the opportunity to grow and succeed.

Research shows that digital ad taxes harm local businesses and consumers more than the large corporations proponents are seeking to impact. A Deloitte study found that France’s digital advertising tax hurt consumers the most, with 55 percent of the tax burden being passed directly to them–resulting in a functional tax hike.

A tax on digital advertising is a tax on every hardworking business owner, large or small, who relies on digital platforms to reach customers, compete, and grow. For small businesses, these taxes lead to challenging choices – significantly raising prices, reducing services, laying off staff, or shutting down.