Keeping Up with the Speed of Change: Digital Taxes

         Taxes in the digital landscape have now taken hold. In the United States, Sales Tax on transactions that take place on the Internet must now be collected, even if that company does not have a physical presence in that state. It took a Supreme Court ruling to change this fundamental way so many online firms handle business. However, this change is by no means just a national issue.

          European countries are considering different ways to tax multinational digital companies. At its core, these taxes will take a percentage of sales from user information, digital ads, and other sources of revenue. In some cases, the taxes will only apply if the company meets a certain threshold, in others it will be focused on the business activity that is generated in that country. Either way, these Digital Taxes are something new that must be navigated on the road of entrepreneurship. There have been accusations that some of these newly passed Digital Taxes are specifically targeting American companies. There is evidence that seems to support those claims.

          Taking some time to step back and observe the changes going on helps us to see the big picture. When we can see different things going on, we are better able to plan and move forward with confidence. In this way, we can keep up with the speed of change.

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