A+

A-

Big Tech Faces New Tax Proposals as Congress Pushes for Greater Contributions

Congress is pushing for new tax proposals aimed at Big Tech companies, seeking increased contributions to federal revenue. Lawmakers argue that major tech firms benefit from U.S. infrastructure but pay disproportionately low taxes. The proposed reforms could reshape corporate tax obligations in the digital economy

By Eli Segall

Las Vegas Review-Journal

July 3, 2025 - 2:44 pm

Don't miss the big stories. Like us on Facebook.

The U.S. Congress is moving forward with a series of tax proposals aimed at major technology corporations, signaling a shift toward higher corporate tax contributions. With tech giants such as Apple, Amazon, Google, and Meta generating billions in revenue, lawmakers argue that these companies must pay a fairer share to support national economic initiatives.

Key Tax Proposals and Their Implications

Minimum Corporate Tax Rate for Big Tech

A proposed 15% minimum corporate tax rate would prevent large tech firms from using loopholes to lower their tax obligations.
This measure aligns with global tax reform efforts to ensure multinational corporations pay equitable taxes across jurisdictions.

Digital Services Tax (DST)

Lawmakers are considering a 3% tax on digital advertising revenue, impacting companies like Google, Meta, and Amazon.
This proposal mirrors similar digital taxes introduced in Europe, Canada, and Australia.

Closing Offshore Tax Loopholes

The Biden administration is pushing to eliminate offshore tax havens, ensuring that profits generated in the U.S. are taxed domestically.
Companies that shift profits to low-tax jurisdictions like Ireland and Bermuda could face stricter tax regulations.

Stock Buyback Tax Increase

The current 1% tax on stock buybacks may increase to 4%, discouraging large-scale buyback programs used by tech firms to inflate stock prices.
Lawmakers argue that increasing the tax would encourage companies to invest in innovation and workforce expansion instead.

AI and Cloud Computing Taxes

As artificial intelligence and cloud services become dominant revenue sources, Congress is exploring new taxation models for these sectors.
Proposals suggest additional levies on AI-generated content and cloud infrastructure usage by large enterprises.

Impact on Tech Companies and the Economy

Higher Tax Liabilities: Companies may need to adjust financial strategies to account for higher taxation.
Investment in Compliance: More stringent tax laws could increase regulatory compliance costs for tech firms.
Consumer Price Implications: Higher taxes might lead to increased service costs for consumers and businesses relying on digital platforms.
Government Revenue Boost: Additional tax revenue could support infrastructure, social programs, and national debt reduction efforts.

Industry Response and Potential Legal Challenges

Major tech companies have expressed concerns over the proposed tax changes, arguing that:

Higher taxes may stifle innovation and investment in emerging technologies.
A digital services tax could create double taxation issues, as companies already pay taxes in multiple jurisdictions.
Stock buyback tax increases could reduce shareholder value, impacting market confidence.

Tech industry groups are expected to lobby against the proposals and explore legal challenges if the legislation is enacted.

Future Outlook: Will These Tax Measures Pass?

The success of these proposals depends on Congressional negotiations, bipartisan support, and corporate lobbying efforts. With an election year approaching, tax reform could become a key policy issue, influencing voter sentiment on economic fairness and corporate responsibility

LOCAL NEWS YOUR WAY

By signing up you agree to our Privacy Policy and Terms of Service. Unsubscribe at any time.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

us-government-to-increase-investments-in-ai-and-machine-learning.webp

the latest

The Role of U.S. Technology in Global Economic Recovery Post-COVID

As the world recovers from the economic impact of COVID-19, U.S. technology companies are leading the way in digital transformation, AI-driven growth, and supply chain resilience. From cloud computing to biotech, innovations are shaping a stronger global economy

Big Tech Faces New Tax Proposals as Congress Pushes for Greater Contributions

U.S. Invests in Cybersecurity Innovation to Strengthen National Security

The U.S. government is ramping up investments in cybersecurity innovation to protect national security. With rising cyber threats from foreign entities, the administration is allocating billions to strengthen defense systems, AI-driven security, and critical infrastructure protection.

Venture Capital Investments in Tech Reach Record Highs in 2025

Venture capital investments in the tech industry have reached record highs in 2025, driven by innovations in AI, blockchain, and green technology. Investors are pouring billions into startups, signaling confidence in the sector’s future growth

U.S. Tech Sector Faces Antitrust Scrutiny Amid Regulatory Crackdown

The U.S. tech sector is under heightened scrutiny as regulators and lawmakers ramp up antitrust investigations. Major tech companies face legal and regulatory challenges over market dominance, data privacy, and fair competition

Biden Administration's Funding Boosts Green Tech Startups

The Biden administration has announced significant funding initiatives to support green tech startups, aiming to accelerate the development and adoption of clean energy technologies.

Tech Industry Thrives Amid U.S. Regulatory Changes

The tech industry is seeing significant growth as the U.S. government introduces new regulatory changes aimed at fostering innovation while ensuring ethical practices. This shift is expected to create new opportunities and challenges for tech companies in 2025

Chinese AI App Sparks US National Security Concerns

A new powerful AI app developed in China is causing concerns in Washington due to its potential impact on national security, data privacy, and economic competition. US officials are closely monitoring its development

Stargate AI Project: Tech Giants Launch $500bn Investment

Major tech giants have unveiled the Stargate AI project, a groundbreaking initiative that could be worth up to $500 billion. The ambitious plan aims to reshape the future of AI

INFO & EDITIONS

Traffic

Las Vegas Weather

e-Edition

Download our Apps

Contests and Promotions

Partnered Content

SOLUTIONS

Advertise with Us

Place a Classified Ad

FAQ

At The Scene

Store

Rights and Permissions

SUBSCRIPTIONS

Subscriptions

Put The Paper On Hold

Report A Delivery Issue

Newsletter Sign Up

CONNECTIONS

Letter to Editor

News Tips and Press Releases

Work for LVRJ

Internships

AFFILIATE PUBLICATIONS

neon

Business Press

Boulder City Review

Vegas Nation

Lightning Digital

Best of Las Vegas

Pahrump Valley Times

LV New Homes Guide

rj magazine

Las Vegas News

Raiders News

Las Vegas Sphere

Oakland A's Move

Las Vegas Casinos

Las Vegas Crime

Las Vegas Shows

Sports Betting

F1 Las Vegas

Las Vegas Restaurants

Lake Mead

Las Vegas Weather

| Privacy Policy | Terms of Service