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Businesses Government The Almighty Buck United States Technology

California Governor Proposes Digital Dividend Aimed At Big Tech (bloomberg.com) 227

An anonymous reader quotes a report from Bloomberg: California Governor Gavin Newsom proposed a "digital dividend" that would let consumers share in the billions of dollars made by technology companies in the most populous U.S. state. In his "State of the State" speech on Tuesday, Newsom said California is proud to be home to tech firms. But he said companies that make billions of dollars "collecting, curating and monetizing our personal data have a duty to protect it. Consumers have a right to know and control how their data is being used." He went further by suggesting the companies share some of those profits, joining other politicians calling for higher levies on the wealthy in U.S. society. "California's consumers should also be able to share in the wealth that is created from their data," Newsom said. "And so I've asked my team to develop a proposal for a new data dividend for Californians, because we recognize that data has value and it belongs to you." Newsom didn't describe what form the dividend might take, although he said "we can do something bold in this space." He also praised a tough California data-privacy law that will kick in next year.
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California Governor Proposes Digital Dividend Aimed At Big Tech

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  • by JBMcB ( 73720 )

    People who use these services for "free" get to do so because of data collection. I'm assuming that California residents also get to use the services for free. Not sure why they are entitled to get money back from these companies as well as free service.

    If the subtext to all of this is the affordable housing crisis in California, then build more damn houses.

    • by pr0t0 ( 216378 )

      Came here to say this very thing. However, upon reflection, there certainly are plenty of tech companies that monetize data and offer nothing to the generators of that data in exchange. I'm thinking about large ad-tracking networks, paid app creators who grab unnecessary data, department stores, etc., etc. That said, I'm not sure I agree with governor's proposal. Rather than at a state level, I would prefer if each company that had access to and sold my data: a) requested permission to do so, and b) compens

    • by gtall ( 79522 )

      It isn't a question of building more damn houses, it is a question of where to build more damn houses. If you can build them just south of East Where-Am-I and it takes two hours to commute to a job, that sort of puts a damper on your plan to build more damn houses.

  • Move your brand (Score:5, Insightful)

    by AHuxley ( 892839 ) on Wednesday February 13, 2019 @08:22AM (#58114942) Journal
    To a low tax state that respects your right to innovate.
    Lots of other great US states have fast internet and low tax.
    Low power costs and an educated workforce that's ready.

    Escape the trash, waste, crime, new taxes and find a better state.
    They will let you keep your employee cafeterias too.
    • Re:Move your brand (Score:4, Insightful)

      by Zontar_Thing_From_Ve ( 949321 ) on Wednesday February 13, 2019 @08:52AM (#58115076)

      To a low tax state that respects your right to innovate.
      Lots of other great US states have fast internet and low tax.
      Low power costs and an educated workforce that's ready.

      I would just mod you up if I had any points, but I don't. One of the great truths in life that I learned a long time ago is that the rich (including corporations) are really good at protecting their money. This is why things like the "Fair Tax" movement in the USA will fail if it ever gets enacted. The rich have ways to buy things in ways that will avoid them paying tax. Similarly, there are limits to how much California can tax their high earning companies unless they are willing to watch them leave.

      • Well, technically there is a way but I doubt anyone wants to go down that road.

      • The "Fair Tax" would be a dream for the rich, resulting in massive savings for them. It's basically a flat sales tax on every damn thing. The rich spend far less than they make, and only a fraction of their spending is done in the US.

        Meanwhile the lower classes would be devastated by the sales taxes since they spend most or all of what they make on the basic necessities of living and participating in the economy, and almost all of that spending is local. You'd soon see them take on the kind of spending patt

        • by lgw ( 121541 )

          The rich spend far less than they make

          One might just assume a causal connection there. You know, if one had any interest in becoming a despicable richer.

          • Spending less than you make is only a viable method to getting rich if you already have a very generous income. The rich spend less than they make because they make so much more than they have any need or want to spend.

            • by lgw ( 121541 )

              Spending less than you make is only a viable method to getting rich if you already have a very generous income.

              Proven false by a great many people, including myself when younger. Heck, a buddy of mine was a security guard making $6/hour and saving half his pay (he did work a lot of hours), who inspired me to do the same. It's just a matter of priorities and optimization, assuming you have a full-time job. Not much you can do beyond subsistence if you're stuck with part time work, but that's not most people.

              Whether your religion is Rich Dad Poor Dad, or Mr Money Mustache, or one of the many other cults of savings,

              • I see you're not familiar with modern median incomes. That was the case in the past, but not these days. Employees are being squeezed much tighter. [epi.org]

                • by lgw ( 121541 )

                  Dude, modern median incomes are plenty to save on. Saving significantly when just at the poverty line is hard mode, but possible. Saving at median income is easy - just live like a student and you can save half your pay.

      • I had a boss in the 90s who told me that if you actually pay taxes then you're not making enough money yet.

    • Hmmm... (Score:5, Insightful)

      by Actually, I do RTFA ( 1058596 ) on Wednesday February 13, 2019 @08:57AM (#58115112)

      Maybe the fact that companies aren't moving out of California means that the market has already spoken, and that making a shitty state low-tax doesn't make up for being a shitty state. Maybe those low-tax states should raise taxes and become better places to live to attract those companies.

      It's so strange to assume that really rich companies (or billionaires) care so much about saving 10% off their taxes that they'll take a heavy hit to their quality of life. I mean, they could save more than that by moving from a private jet to first-class or a 250' yacht to a 200' yacht. And they don't.

      • Re:Hmmm... (Score:4, Insightful)

        by Syncerus ( 213609 ) on Wednesday February 13, 2019 @09:27AM (#58115268)

        This article, taken at face value, suggests otherwise:

        https://thehill.com/opinion/finance/429623-americans-continue-their-march-to-low-tax-states

        • That article's hyperlinked source (from its first line) says different from the article. Or rather, the article cherry-picked data to make its point. The data says after Texas and Florida, California grew the most. That didn't work with the hill's predetermined narrative, so they switched to different, processed, stats that did.

      • Re:Hmmm... (Score:5, Insightful)

        by mjwx ( 966435 ) on Wednesday February 13, 2019 @09:35AM (#58115328)

        Maybe the fact that companies aren't moving out of California means that the market has already spoken, and that making a shitty state low-tax doesn't make up for being a shitty state. Maybe those low-tax states should raise taxes and become better places to live to attract those companies.

        It's so strange to assume that really rich companies (or billionaires) care so much about saving 10% off their taxes that they'll take a heavy hit to their quality of life. I mean, they could save more than that by moving from a private jet to first-class or a 250' yacht to a 200' yacht. And they don't.

        This, That low tax state is a low tax state because it's shitty already. Moving out to Bumfuck, Montana sounds good for a tax write off but then you realise how much up front you'd need to spend just getting the basics set up like power, internet, water. The capex in moving alone would kill the tax savings for a decade. Then you realise that 80% of your workforce doesn't want to move to the worst performing schools in the country and are looking for jobs at your competitors.. It costs money to hire people, even more money to hire people in places where they don't want to live.

    • by rsilvergun ( 571051 ) on Wednesday February 13, 2019 @10:45AM (#58115758)
      companies don't move to high cost of living areas because they want to. They do that because all the talented college grads want to live there.

      My Kid is finishing up college and wants to move to one of the pricey cities in Colorado. As an old dude that doesn't make sense to me since I don't want to pay $2k/mo for a decent apartment but if I was young I'd want to live in a big, fun city.

      For lower tier jobs workers go where the work is. But for the higher tier stuff it's the other way around. See here [youtube.com]
    • What are these magical low-tax states with educated workforces and low taxes that you speak of? Last I heard, it takes tax money to create educated people.
  • Maybe the citizens of the state could get a refund on the multibillion dollar waste on high speed rail line project which was recently canceled.
  • Why the Newspeak ?

  • Obviously he's just going to tax them, I doubt he's suggesting the state should buy a big chunk of stock. But one could just buy stocks and directly enjoy the dividend -- and YOU pay taxes on it.

    Either way the government is getting your money.

  • "And so I've asked my team to develop a proposal for a new data dividend for Californians, because we recognize that data has value and it belongs to you."

    Except that this wealth is not only created by Californians, or even only by Americans. The wealth is created by people all around the world. So that wealth should be split evenly by the number of users in those other countries/states/provinces.

  • by bradley13 ( 1118935 ) on Wednesday February 13, 2019 @09:45AM (#58115384) Homepage

    There they go again: politicians buying votes with other people's money.

    If they have a genuine interest in protecting people's data, all they need is to copy the GDPR. It's one of the few truly good things to come out of the EU parliament: companies must have your explicit permission in order to collect and use your data.

    But that's not what this proposal in California is about. This is about sounding good, winning political brownie points by promising to hand out someone else's money.

  • If you want a "dividend", buy their stock low and sell it high.

    • As a dividend investor, I couldn't agree more. Want to profit off a company's profits? Buy their stocks. However, most of the CA based big tech companies don't pay dividends. Of the five FAANG (Facebook Apple Amazon Netflix Google) companies, only four are based in California and only Apple (APPL) pays a dividend (a paltry 1.7% at that). For everything else, the "buy low, sell high" strategy is the only option for investors.
  • What'd I say? (Score:4, Interesting)

    by CaptainDork ( 3678879 ) on Wednesday February 13, 2019 @10:49AM (#58115788)

    Right here? [slashdot.org]

    Declare private data to be IP and copyrighted by the entity creating the IP.

    Calculate the value of the IP by examining the revenue generated from it.

    Pay royalties to the owners of the private IP whenever and wherever the data is used/reused, in perpetuity.

    For those who don't wish to sell their IP, allow them to opt out. Any private IP harvested will be theft.

    I have to think of everything and stuff.

  • the problem with these tech companies (and also the reason they're so popular with investors) is they "scale" too well. You can have a company with 10,000 employees bringing in $5+ billion a year with a $100 billion market cap. This means very little of the money they generate is making it into the community at large.

    In the "old" days you'd just tax the income of the investors but they're hiding their money, so we have to get creative if we want to have a civilization around these folks. Otherwise they'l
  • A couple problems with this:
    1. Alaska population is less than 1 million people. California is almost 40 million.
    2. You don't think all the big tech companies in California wouldn't push back on this as hard as they can?
    Also, even if they went along with it: this 'dividend' wouldn't amount to much per person.
    Also it's just going to inflame Republicans and other Conservative types, who will brand it as 'socialism' -- and they're not wrong, it is socialism.
    I'm not sure what Newsome is thinking here, other
    • ..oh and something I forgot: Even if all the tech companies went along with it? They'd likely either raise their prices, freeze and/or cut wages, or all the above, to offset it, and there wouldn't be anything anyone could do about it; you'd be robbing Peter to pay Paul, so-to-speak. Really, it doesn't sound like a good idea.
  • If my data really belongs to me, how about letting me control it? I don't want a "dividend" from the money companies make by exploiting my data. I want them to stop exploiting my data. If you really mean what you say about my data belonging to me, I should be able to insist on that.

The truth of a proposition has nothing to do with its credibility. And vice versa.

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