Digital advertising, social media, crypto, prediction markets are targeted by governor |
Governor J.B. Pritzker, Democrat of Illinois, is seen in a photo provided by his office.
By Ira Stoll | The Washington Free Beacon
The governor of Illinois, Democrat J.B. Pritzker, the billionaire Hyatt hotel heir who is a possible 2028 presidential candidate, is facing sharp criticism after signing into law a state budget that adds $800 million a year in new taxes to a state already in the worst third of the 50 states when it comes to imposing tax burdens.
Unleash Prosperity, a pro-growth, free-market-oriented group, called Pritzker “a man who never met a tax increase he didn’t embrace.” He’s more frugal when it comes to his own money. Pritzker had five toilets ripped out of a second mansion in what Cook County described as a fraudulent scheme to save $330,000 in property taxes.
The Illinois Policy Institute had urged Pritzker to veto the advertising tax on the grounds that “its revenue isn’t needed and it’s sure to be legally challenged.” “It’s another ‘Pritzker Two-Step’ budget: increase spending, then raise taxes and sweep dedicated revenues from other funds to fill another big budget gap. This is why Illinois residents pay the highest combined state and local tax rate in the country,” wrote Paul Vallas, a senior fellow at the Institute. “Pritzker has presided over at least 63 tax and fee increases.”
A senior fellow at the Tax Foundation, Jared Walczak, warns that, “the new tax opens the state up to costly litigation it has a very good chance of losing … the whole thing looks like something dashed off with very little thought.” The social media tax “is $6 per user per year, denominated as $0.50 per user per month for large social media platforms, and lesser amounts per user for smaller platforms,” he writes. “Illinois plans to impose a complicated, legally fraught new tax based on a few pages of confused, contradictory, and almost laughably incomplete legislative text embedded in the new budget.”
An editorial in the Washington Post is headlined “Pritzker’s social-media-tax belly flop.” Said the Post, “He’s preparing to run for president in 2028 and apparently believes that antagonizing successful businesses will play well with the liberal base. But voters tend to notice incompetence.” It notes that the digital ad tax “is designed to extract huge sums from Google, Meta and Amazon, whose executive chairman Jeff Bezos owns The Post.”
The Post concluded, “Ultimately, the biggest losers might be the people who actually use social media. Rather than just swallow the tax, companies may need to consider charging for subscriptions, erecting tiered paywalls and raising the rates for advertising. That will disadvantage small businesses who depend on social media to get out the word about their products. It might even mean some smaller platforms cease operations in Illinois.”
Report continues here.
Read Full Post »
