Education Not Endless Scrolling Act
Summary
The "Education Not Endless Scrolling Act" introduces a 50% tax on digital advertising services for companies with over $2.5 billion in gross receipts. Revenue generated will fund three trust funds: Local Journalism Preservation, One-on-One Tutoring, and Career and Technical Education Support.
The bill aims to support local journalism, provide tutoring programs, and bolster career and technical education by amending the Internal Revenue Code of 1986.
The Act also directs the Secretary of Education to award grants to State educational agencies for individual tutoring programs.
Expected Effects
The Act will increase the cost of digital advertising for large tech companies. This could lead to increased prices for consumers or reduced investment in digital advertising. The trust funds created could improve local journalism, tutoring access, and career and technical education programs.
Potential Benefits
- Funds local journalism initiatives, potentially preserving local news outlets.
- Provides funding for one-on-one tutoring programs, improving educational outcomes.
- Supports career and technical education, enhancing workforce readiness.
- Targets large, profitable tech companies, potentially addressing concerns about their market dominance.
- Creates dedicated funding streams for specific educational and journalistic needs.
Most Benefited Areas:
Potential Disadvantages
- The tax on digital advertising services could be passed on to consumers in the form of higher prices.
- It may disproportionately affect businesses that rely heavily on digital advertising.
- The $2.5 billion threshold may be arbitrary and could create unintended consequences.
- The effectiveness of the trust funds depends on how they are managed and the quality of the programs they support.
- The tax could be seen as a barrier to innovation in the digital advertising space.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's tax provisions align with Congress's power to lay and collect taxes under Article I, Section 8 of the Constitution. The allocation of funds to specific programs relates to the "general Welfare" clause, also in Article I, Section 8. The First Amendment implications regarding freedom of the press could be relevant, depending on how the local journalism provisions are implemented. The bill does not appear to infringe on any other constitutional rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).