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Making Big Tech help PA’s seniors stay in their homes

Pennsylvania has a problem. Our outdated tax system is costing working people billions of dollars. They are watching their neighborhood schools close, their bus lines get cut, and their health care costs skyrocket while big corporations make billions — without paying their fair share to our state.

That’s not right.

There is a simple solution: lawmakers can boldly face corporate greed and require multinational corporations and billionaires to pay their fair share in taxes and use that money to fund schools, mass transit, healthcare, and more.

Our bill, HB1678, would modernize Pennsylvania’s 5% gross receipts tax to capture revenue derived from digital advertising platforms. This tax will be paid by the wealthiest Big Tech corporations, including Google, Meta, Amazon, TikTok, and Microsoft, which sell most digital ads. This tax will not be paid by working Pennsylvanians promoting and selling their products, but by the Big Tech platforms on which they are sold.

We’re talking about those ads that pop up when you’re scrolling or searching: pop ups selling new sandals, autoplay videos for designer dog food, recommended searches for toys and stain remover. We have all had the experience of searching for a product or talking about one, only to find an ad for it pop up the next time we pull out our phone. And these ads aren’t just annoying–they are a multi-billion-dollar business model that could become a trillion-dollar industry in the next five years.

When we log onto Instagram or search something on Google, our assumption is that these sites are free. But they’re not: these corporations rely on harvesting our personal data — everything from geolocation, what we click, how long we linger on a post, and who we know. This data collection is how corporations are able to target ads to sell disturbingly relevant products back to us. They are taking our information to make our experience on the internet worse, and Pennsylvanians don’t receive a dime in return.

This business model hurts everyone, including the small businesses on our blocks — the corner stores, hairdressers and restaurants — who pay their taxes and employ community members.

Simply put, our tax system needs a 21st century update, Big Tech needs to be held accountable, and Pennsylvania needs a break.

5% is a small price to pay in exchange for the extraordinary profit we make possible — and the impact Big Tech has on our communities. As House Majority Leader Matt Bradford recently said, “these are the biggest, most profitable companies, that are bringing data centers and all of the challenges to our commonwealth. 100% they should pay their fair share.”

Speaking of profit, let’s talk about the numbers. Last year, Meta made 196 billion dollars in ad revenue alone. And in just a couple of years, the digital ad industry is projected to be worth 1 trillion dollars. How much money could our bill bring in? Estimates show that this simple expansion of Pennsylvania’s gross receipts tax could raise up to $600 million in 2027 alone.

There is a simple solution: lawmakers can boldly face corporate greed and require multinational corporations and billionaires to pay their fair share in taxes and use that money to make sure our senior citizens never see another property tax hike again.

In Harrisburg, we hear all the time that the things we need aren’t possible. We know the money we need exists; it’s just being hoarded by the wealthy few. We cannot allow mega-corporations to continue to get a free pass while Pennsylvanians and small businesses are struggling to make ends meet.

In Harrisburg this month we will work hard as state legislators representing our respective communities to negotiate a fair and responsible state budget. To do that, we are going to have to make some hard choices. At a time when reckless war, steep federal cuts to social services, and Big Tech have worsened the affordability crisis, one thing is clear. We cannot ask working people or seniors to pay more.

So we have a choice to make: Are we going to let the biggest corporations in the world continue to use a loophole and not pay their fair share to our state? Or will we have the courage to support the people who built our communities — and who sent us here? The Pennsylvania House of Representatives passed this bill with an overwhelming bipartisan majority — now, it’s up to the state Senate to do the right thing.

Elizabeth Fiedler is a State Representative in Philadelphia. Aerion Abney and John Inglis are State Representatives in Allegheny County.

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