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California proposal to tax social media gathers momentum

A bill that would tax digital advertising revenue on social media platforms has advanced in the California state legislature.

A new bill introduced in the California State Assembly, AB 2239, proposes a 7.25% tax on social media companies' gross receipts from advertisements targeted at California residents, aiming to generate revenue to combat the negative effects of social media on youth mental health. The bill, introduced by Assemblymember Buffy Wicks, targets companies with at least $2.5 billion in annual gross receipts and more than 1 million users, with the collected funds intended to support mental health services, school counselors, and media literacy programs. Critics argue that the tax could lead to higher advertising costs, potentially affecting small businesses and consumers, while supporters believe it will hold social media companies accountable for the impact of their platforms on young people's well-being.

Read the Full Newsweek Article at:
https://www.newsweek.com/california-tax-social-media-legislation-2064045