Minnesota Senate Democrats propose new tax on social media companies
A view of the Capitol dome on March 6, 2025. Photo by A.J. Olmscheid/Senate Media Services.
Minnesota Senate Democrats are proposing a first-in-the-nation tax on large social media companies that collect data on Minnesota consumers.
The bill, chief authored by Senate Taxes Committee Chair Sen. Ann Rest, DFL-New Hope, would impose a tax on social media companies based on the number of monthly active Minnesota consumers from whom the company collects data.
Minnesota is facing a looming multi-billion dollar budget deficit, and lawmakers are working to cut spending and generate new revenue to offset the imbalance. In an interview, Rest said taxing social media companies is a solution that doesn't hurt Minnesotans — it doesn't cut critical social services or increase their taxes.
'We know we're going to see some cuts, but I also felt it was my job to look for some fair ways to provide the revenue,' Rest said. 'We're talking about folks like Elon Musk and Mark Zuckerberg. We've been giving to them for years and years, and now we're going to ask those social media businesses to participate in solving Minnesota's budget challenges.'
Under the bill (SF 3197), if a social media company has fewer than 100,000 monthly consumers from Minnesota, it wouldn't be taxed. If the social media company has between 500,000 and 1 million Minnesota consumers, the tax per month would be $40,000 plus 25 cents times the number of consumers over 500,000.
For the largest social media companies — those that have over 1 million Minnesota consumers — the tax per month would be $165,000 plus 50 cents times the number of consumers over 1 million.
The Department of Revenue estimates that the tax would apply to 15 social media companies. The tax, which would begin in January 2026, would generate around $46 million in the first fiscal year, $92 million in the second and about $100 million annually after that.
Meta, the parent company of Facebook, reported $62 billion in profit in 2024, on $164 billion in revenue.
Even as the companies make hundreds of billions of profit, social scientists are sounding the alarm on the widespread use of the apps, especially by young people.
Republicans this year have said that they will not support any new taxes on Minnesotans, so lawmakers have been looking for areas to cut spending. When asked whether House Republicans would support a tax on social media companies, a spokesperson said no.
'Our position is no tax increases,' a House GOP caucus spokesperson said.
New York since 2021 has proposed taxing social media companies for data collection, or data mining, and a similar bill is again being considered by the New York Legislature this year.
Rest said that she hopes Minnesota's legislation can be regarded as a model for other states that are experiencing budget shortfalls.
The bill will be heard in the Senate Taxes Committee on Wednesday, and Rest said House Taxes co-chair Rep. Aisha Gomez, DFL-Minneapolis, will be introducing the House version soon.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
13 minutes ago
- Wall Street Journal
Trump's ‘Big, Beautiful' Bill Gets Slimmed Down in Senate
WASHINGTON—President Trump's 'big, beautiful' bill is getting smaller just as Republicans head into a crucial week, after the Senate's rules arbiter decided several controversial provisions don't qualify for the special procedure the GOP is using to bypass Democratic opposition. The tax-and-spending megabill centers on extending Trump's 2017 tax cuts, delivering on the spirit of his campaign promises to eliminate taxes on tips and overtime, and providing big lump sums of money for border security and defense. Those new costs are partially offset by spending cuts, in particular to Medicaid.
Chicago Tribune
26 minutes ago
- Chicago Tribune
Democratic leaders share vision for party's future in Valparaiso town hall
State and Porter County leaders discussed the future of the state and national Democratic Party during a town hall Saturday at the Laborers' Local 81 in Valparaiso. The town hall was led by Indiana Democratic Party Chairwoman Karen Tallian, State Sen. Rodney Pol, D-Chesterton, State Rep. Chuck Moseley, D-Portage, and Center Township Trustee Jesse Harper. About 45 people attended the meeting, and a handful of them submitted questions on note cards about the future of the Democratic Party in the upcoming midterm elections, voter turnout, party messaging and engaging younger people to run for office. While a lot of people are mad about the current national political landscape, Harper said an equal amount of people are mad at the Democratic Party. 'They are angry and mad at the Democratic Party. We have to take responsibility for our losses. We have to figure out what happened,' Harper said. 'Everything you're concerned about, I'm going to tell you right now it doesn't mean a damn thing. The reason it doesn't mean a damn thing is because we can't do anything about it because we don't have the votes. The only way we get those votes is by getting Democrats elected.' For the midterm elections, Tallian said the state party has been reaching out to all the county chairs, holding town hall meetings and creating a program to focus on candidate recruitment. 'This year, we're in an off year, we need to build and to recruit candidates,' Tallian said. 'We've got 92 counties, and every one of them has down ballot elections. We have township advisory boards, we have county councils, and now we have school boards. All of these down ballot positions need to get filled.' Every precinct committee person also needs to help with voter registration and canvassing, Tallian said. In 2024, 330,000 Hoosiers registered as Democrats but did not vote, she said. 'One of the things we're trying to do this year is to canvas neighborhoods for those people and find out why,' Tallian said. 'We need to get that done this year so that people can be ready for the elections in 2026.' For Democrats to win in Center Township, Porter County and in Indiana, Harper said Democratic candidates need to secure Republican votes. 'It's not this elusive Independent vote … you've got to get Republican votes,' Harper said. 'The way to do that is you are the adult in the room and you talk about issues that people are scared about.' For example, Harper said health care cuts impact the elderly, children and people with disabilities, which is 'a bipartisan issue' that also allows Democrats to be 'the adults in the room.' One of the questions raised concerns about 'watering down' Democratic values to get Republican votes versus 'doubling down' on Democratic issues to encourage more Democrats to vote. If the party were to double down on Democratic issues, 'there aren't enough Democrats' in Indiana to vote on those issues, Harper said. 'It's a question of mathematics,' Harper said. 'We have to decide what our Democratic messaging is, when we use it and how we use it. I think we can have a strong Democratic message.' When it comes to messaging, Moseley said property taxes, future economic stability and health care are major issues that the Democratic Party can focus on. 'People want to vote for something, not just always against something,' Moseley said. Another important issue in Northwest Indiana is the environment, as it's located near Lake Michigan and environmental protections are rolled back, Pol said. Pol said public education is also an important issue the party could focus on because public education in Indiana has been experiencing a 'death by 1,000 cuts' with each passing legislative session. The state's voucher program allows wealthy families to receive a discount for sending their children to private schools, while public education has been eroding through various pieces of legislation, he said. 'It's the funding of defunding public education, is what it is. We'll give you money to send your kids to a private school, so you don't send your money to a public school,' Pol said. As she talks to people at town halls throughout the state, Tallian said the themes she's heard people should focus on are the economy, 'Big Brother' and stability. Under 'Big Brother,' Tallian said Republican Party leaders 'at the state and federal level are telling us what to think, they're telling us what our universities can do and they're cutting who can go to which schools.' 'The 'Big Brother' aspect of what's going on in this country is, to me, one of the scariest things going on right now,' Tallian said. When it comes to stability, Tallian described the constant switch between tariffs being on and off and chaos caused by the deportation methods under President Donald Trump's administration. 'Things keep moving every day in Washington and you can't keep track of anything,' Tallian said. 'We want to have stability.' When it comes to engaging younger people, Tallian, a former state senator, said Pol took over her seat and he's younger than her youngest child. The party needs to 'build a bench,' Tallian said. 'The bench can't just be people who want to burn everything down and start over. We've seen the burn down, start over (with) DOGE,' Tallian said, referencing Elon Musk's Department of Government Efficiency. Indiana's Democratic Party leaders at the county level range in age from 22 to 82, Tallian said, and she wouldn't 'throw out anyone' because they are either too young or too old. 'But building the bench is something that we absolutely need to do, and I'm encouraging that every single place I can,' Tallian said. Pol said when he first joined the Senate he was 37 years old and he was the youngest senator at the time. Pol said he's now 41 years old and he's still the youngest Senator. 'I think that's criminal because there are younger people who are much smarter than I. There are younger people who have a voice that needs to be heard,' Pol said. Pol encouraged young people to get involved in political groups and organizations to have their voices heard and engage in the process. Moseley said anyone coming to town halls or other political events should bring a younger person they know to the event to educate them on the process. 'It's up to us to let them know, 'Hey, you are welcome,'' Moseley said. Tallian has come under fire after an IndyStar opinion piece written by Elise Shrock, sharing her story of being dragged out by sheriff's deputies from an Indianapolis City-County Council meeting earlier this month for seeking accountability for survivors of sexual assault. Shrock shared her disappointment with the state Democratic Party's silence on the issue. In response to a question about the situation Saturday, Tallian said it's 'partially an Indianapolis problem.' Referencing her written statement issued after the op-ed was published, Tallian said just days apart, she saw U.S. Senator Alex Padilla from California shoved to the ground and handcuffed at a news conference in Los Angeles, and in Indianapolis, multiple women were shoved out of a public meeting. 'Forcibly removing people from a public meeting is not the way that we fix our problems in this country,' Tallian said.
The Hill
an hour ago
- The Hill
Senate parliamentarian rejects GOP's attempt to limit courts' contempt powers
The Senate parliamentarian has ruled against a controversial provision in the Senate Republicans' megabill that would have made it significantly more difficult for courts to enforce contempt findings against the Trump administration. The parliamentarian, Elizabeth MacDonough, ruled that limiting courts' ability to hold Trump officials in contempt violated the Senate's rules governing what can be passed with a simple-majority vote on the budget reconciliation fast track. Senate Democratic Leader Chuck Schumer (N.Y.) hailed the parliamentarian's decision as a major victory. 'Senate Republicans tried to write Donald Trump's contempt for the courts into law — gutting judicial enforcement, defying the Constitution and bulldozing the very rule of law that forms our democracy,' Schumer said in a statement responding to the development. 'But Senate Democrats stopped them cold. We successfully fought for rule of law and struck out this reckless and downright un-American provision,' he said. The provision, tucked into the thousand-page bill House Republicans passed in May, would have required anyone suing the federal government to pay a bond before a court would be allowed to use its contempt power to enforce injunctions and other rulings. Courts have already ruled more than 190 times against the Trump administration since January. The controversial language received little notice when it came to the floor, and Rep. Mike Flood (R-Neb.) later caused an uproar at a town hall meeting when he admitted he didn't know the provision was in the legislation when he voted for it. 'If enacted, this would have been one of the most brazen power grabs we've seen in American history — an attempt to let a future President Trump ignore court orders with impunity, putting him above the law,' Schumer said Sunday afternoon. 'Donald Trump is not above the law. And thanks to Senate Democrats – including the tireless work of Senator Durbin and the Judiciary Democrats – the courts can still hold him and any president accountable,' Schumer said.
