Big Tech Calls Maryland’s Tax a ‘Penalty’ to Cure ‘Social Ills’

Big tech companies challenging Maryland’s tax on digital advertising accused the state of imposing a penalty on the likes of Google and Facebook for perceived “social ills” rather than a legitimate tax protected under state and federal law.

The U.S. Chamber of Commerce and three technology trade associations told a federal court that Maryland Attorney General Brian Frosh can’t shield the state and its first-in-the-nation Digital Advertising Gross Revenues Tax from federal court scrutiny under the Tax Injunction Act, or TIA.

Frosh has called on U.S. District Court Judge Deborah K. Chasanow to dismiss the groups’ lawsuit, arguing ...