The city’s tech companies are going to feel the pain of Mayor Lori Lightfoot’s first budget.
Lightfoot’s budget proposes to boost the city’s tax on cloud-computing services, which was wildly unpopular when it was instituted in 2015, is going up to 7.25 percent from 5.25 percent.
This is a consumer tax not a true tax on cpu and data storage in the cloud. If the city wanted to it can tax that which would literally generate billions In revenue per year. Then you would see business scream! Amazon web services, Microsoft AZURE or Google clod services tax would be huge. Companies run many systems there now rather than investing in their own expensive data center build outs.
Of course every business would leave Chicago, but for a while it would generate 10’s of billions in revenue if you taxed every byte of data egress.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
This is a consumer tax not a true tax on cpu and data storage in the cloud. If the city wanted to it can tax that which would literally generate billions In revenue per year. Then you would see business scream! Amazon web services, Microsoft AZURE or Google clod services tax would be huge. Companies run many systems there now rather than investing in their own expensive data center build outs.
Of course every business would leave Chicago, but for a while it would generate 10’s of billions in revenue if you taxed every byte of data egress.