Part 5/9:
Another potential revenue tool on Mayor Johnson’s table is a 10% tax on digital advertising—targeting giants like Facebook and Instagram. Backed by the Chicago Teachers Union, the proposal aims to generate funds to close the budget gap, claiming it could provide the needed $25 million annually. Critics, however, argue that such a tax would be passed on to consumers, raising prices and stifling small advertisers who rely on digital platforms.
Maryland is currently embroiled in a lawsuit challenging a similar digital ad tax, highlighting the legal uncertainties surrounding this approach. Nonetheless, supporters see it as a way for the digital industry—where companies make billions in profit—to contribute their fair share.