By Leah Vukmir and Jess Ward | National Taxpayers Union
As Wisconsin lawmakers gear up for a new session in January, the onerous process of seeking measures to solve budget shortfalls will begin. As they build the fiscal 2021-23 budget, they must avoid implementing any cash grabs or bad policy, either of which would stifle a much needed economic recovery. Â
A prime example of a misguided policy proposal that has unfortunately gained some traction in other parts of the country is the digital advertising tax. Such a policy would create a digital advertising gross receipts tax imposed on a company s annual gross revenue in the state. Successful companies that already generate sales, corporate and individual income taxes would be taxed again â not on their net profits, but their gross receipts. The tax â a percentage typically determined depending on a company s total global revenues â would define digital advertising to include banner ads, search engin