Google Upping Its Prices On Canadian Targets

[azgold]

I just came across an article this morning announcing the repercussions of Google's deal to pay the Canadian government tons of money in order to show stuff here in Canada.

Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.

The company says it will implement a 2.5 per cent surcharge for ads displayed in Canada, starting in October.

Just a heads up for anyone targeting Canadian audiences, so you can work the increase into your budget.

Full article HERE.

 

[Graybeard]

Taxes imposed are often a pass through item.
This is also true for wage and supplier price increases.
Market competition can lower the end selling price or at least moderate the increases.

Google's market dominance allows Google to stick it to you (as usual).

 

[T J Tutor]

Ihit montreal, Quebec, and Toronto hard with ads earlier this year and they weren't cheap then. I'm getting ready for "Escape The Cold" campaigns starting in September for the holiday stuff and after holiday stuff. Can't wait to see what the prices will be then.

 

[azgold]

Taxes imposed are often a pass through item.

Yup, totally expected but usually disappointing for people buying.

G paid $100 million dollars for the privilege of showing Canadian news links and now the streaming taxes, so they're going to do whatever they need to in order to recoup that. I imagine they've already done the math and are set to make a profit on it all. It is a business.

Can't wait to see what the prices will be then.

Oh, I'm sure they'll be higher but hopefully, they'll get you lots of biz!

 

[Graybeard]

G paid $100 million dollars for the privilege of showing Canadian news links and now the streaming taxes,

So the revenue diversion (or forced redistribution) is not to your benefit? Your Government at work. In the Us we have the same problems, albeit to a lesser extent.

 

[azgold]

So the revenue diversion (or forced redistribution) is not to your benefit? Your Government at work.

Not to our benefit. Directly, at least. A lot of new programs, they keep throwing money we don't have at everything everywhere. They've run up so much debt, it's sickening. They've obliterated our economy. My great granddaughters' kids will still be paying it down by the time that generation is born and grown.

However, the size of government has ballooned to at least double, so some people have good jobs.

That $100 million dollars is supposed to go towards the 1.4 Billion given to the CBC. They're our mostly state sponsored Canadian broadcasters that no one watches or trusts anymore.

From what I can tell, it's not all that different in other countries, including the states. Things are just messy all over right now.

 

[Graybeard]

Most of the recent US Debt can be attributed to so called "tax reform." Modern Monetary Theory asserts that public debt is adding fuel to the economy by spending money. The only problem with that is when done in excess you have inflation.


So, the FED (US Central Bank) raises policy interest rates and the government has problems servicing the debt authorized. the US FED has raised the policy interest tea 4% from 0.50% and the debt in piling on just to repay the interest on the prior debts. This is the same as getting a new credit card to pay off the other cards balance and effectively rolling over the debt.

The Pandemic was an economic 'prefect storm' that we will be recovering from for many years. We better hope there will be a real benefit in the economy by the accelerated meritorious uses of AI.

Otherwise, there may be a tax on flushing the toilet to service the accumulated national debts.

 

[azgold]

Otherwise, there may be a tax on flushing the toilet to service the accumulated national debts.

That kind of stuff is already happening. Seems like an added tax every week with more coming. Apparently, we now pay more in taxes than for basic necessities. Last I heard, it's gone up to 52% but according to the Fraser Institute, it's 43% so I don't know which is correct, as that report only goes up to 2023. We've had new taxes since then.

And the mayor of Toronto has been playing around with the idea of a new "rain tax". Wish I could say I was kidding. Taxing has become a new hobby, it seems.

There is very little that hasn't been added as a tax or regulation in past year or two. It's not helping anything. The spending, debt and interest just keeps ballooning upwards. The government calls it "investing." Problem is, there are no returns on that money.