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Lawmakers say digital ad tax proposals may have constitutional risks
Summary
During Q&A, lawmakers flagged a proposed digital ad tax as legally questionable and said potential revenue from such a tax might not be counted because of expected litigation, an argument presented as a caution rather than a legal ruling.
Reporters asked whether Democrats were considering a digital ad tax but not counting potential revenue because of pending legal risk. A lawmaker responded that the idea is "constitutionally questionable," and that lawmakers may be testing legal theories that could be litigated.
The brief exchange included a separate example raised about a hypothetical 100% tax on certain federal funds; the lawmaker said such a move "would not survive legal scrutiny" and characterized extreme proposals as effectively a government seizure. The remarks framed the digital ad tax and similar revenue ideas as vulnerable to litigation and not yet reliable sources of budget revenue.
No bill text or formal legal analysis was presented at the briefing; statements are reported as speaker assertions and subject to judicial review if pursued.
