Ignore The Digital Economy Tax Movement At Your Own Peril

Law360, New York (March 2, 2015, 11:33 AM EST) -- Once again, we find ourselves faced with a proposal attempting to target and provide special tax rules for income generated in the digital economy. As was the case in the previous year's budget proposal, the administration's fiscal year 2016 revenue proposals (the "Green Book") contains proposed measures aimed at income generated by "digital goods and services." While it may be easy to dismiss this specific provision as unlikely to be implemented given the current political climate, the reality is that it would be unwise to ignore the momentum that is building, both domestically and internationally, for provisions to be enacted that apply specifically to digital goods and services, as well as the exploitation of personal data....

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