It’s not just big businesses that are worried about a new 10% tax on digital advertising in Washington state. Small businesses are going to feel the pain, too, and one Spokane-based business is sounding the alarms.
Frank Swoboda, who operates Corner Booth Media, joined The Jason Rantz Show on Seattle Red 770 AM to explain how the new Democrat-passed tax threatens small businesses, nonprofits, and the creative economy. The law’s selective targeting of digital platforms like Google, Meta, and LinkedIn may have been intended to hit tech giants, but Swoboda argues the reality is far different.
“You’re taxing digital advertising and video production, but not broadcast, radio, or television,” Swoboda said. “Why isn’t a television ad taxed? If advertising is subject to taxation, why am I being taxed for digital but not for broadcast?”
Small business hit with 10% cost increase
“The truth of it is, they’re just passing that on to us. Our customers are now going to pay, in some places over 10%,” said Swoboda.
For small businesses and nonprofits, digital advertising has been a game-changer — offering affordable, targeted outreach that traditional media couldn’t match. Swoboda’s firm has helped local organizations raise awareness around food insecurity, homelessness, and the fentanyl crisis. But now, those efforts are at risk.
“We’ve had the amazing opportunity the last five years to tell incredible stories about our community… that stuff also gets hurt by this,” said Swoboda.
Bureaucratic nightmare threatens jobs
The tax also creates a logistical nightmare. With little guidance before rollout, small firms are left scrambling to determine what qualifies as taxable.
“You all had, what, two and a half weeks of official guidance before this? No heads up. No clarity,” said Swoboda.
And for businesses near state borders, the incentive to relocate is real. “We could move literally 30 miles… set up shop and not have to be taxed for this,” Swoboda warned.
Tax punishes local talent: the crisis of affordability and common sense
Beyond the immediate financial hit, Swoboda worries about retaining talent in cities like Spokane, where rising housing costs and stagnant wages already make it hard for young professionals to stay.
“Can I afford to live here? Can I afford a house here?” he asked, echoing concerns shared by his staff.
Business owners across the political spectrum are united in their confusion and opposition.
“Most people just go, ‘What?’ This makes no sense,” said Swoboda.
As the legal battle unfolds, Swoboda urges fellow Washingtonians to speak up.
“Whoever tells the best story wins. This is just a story problem. As long as enough people talk about it… good heads will reason,” said Swoboda.
Jason Rantz, Jason Rantz Show, Seattle Red