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Google–California Deal Falls Short Where a Data Tax Would Succeed


Columnist Andrew Leahey says Google and California’s deal to commit funding to journalism and AI shows the need for longer-term solutions and comprehensive taxation of tech giants.

Google’s agreement with California to commit over $172.5 million to journalism and artificial intelligence is an ad-hoc way to sidestep tax and regulatory policies in favor of voluntary, tax-deductible contributions to nonprofits. To safeguard the future of journalism, lawmakers should avoid short-term agreements, “link tax” saber rattling, and corporate payouts in favor of broader taxation of companies such as Alphabet Inc.’s Google. Facebook parent company Meta Platforms Inc. forged similar deals in Australia before resisting additional measures there and ultimately opposing the Canadian “link tax” and any payouts to avoid its passage.

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