12 votes

Google to charge new fee on ads in response to Canada’s digital services tax

2 comments

  1. MimicSquid
    Link
    Good for them. Google has gotten away tax-free in too many ways, and especially as a company headquartered in a foreign country, taxing them on their services provided within the Canadian borders...
    1. Good for them. Google has gotten away tax-free in too many ways, and especially as a company headquartered in a foreign country, taxing them on their services provided within the Canadian borders seems to be the only way to actually derive any revenue from them. Good for Canada. I've long thought that governmental taxation authority in this modern world would sometimes benefit from being conceptualized as fees charged to corporations to allow them to access the nation's consumer base, and it seems like Canada is making that happen.

    2. It's not at all surprising that the cost will be passed through to companies who advertise to Canadians. Perhaps this will mean fewer ads, perhaps it will mean that other ways of advertising will see a resurgence. Either way, it's reducing Google's immense power over the overall ad market just a touch. This seems like a good thing?

    14 votes
  2. skybrian
    Link
    Taxing things we want less of seems fine. Fewer ads seems like a good thing. I can imagine side effects where some companies switch to more annoying ways of advertising that are technically not a...

    Taxing things we want less of seems fine. Fewer ads seems like a good thing.

    I can imagine side effects where some companies switch to more annoying ways of advertising that are technically not a paid ad. (Perhaps a boost to AI-generated sludge?)

    But I'm interested in seeing the results of this experiment.

    10 votes