Should Internet Companies be Taxed for Profiting from Private Data?

Originally posted at PIIE.com

The growing number of California-based technology companies exploiting internet communications to reap billions in revenue recently led Gavin Newsom, the new state governor, to propose a seemingly attractive idea: Why not compensate consumers for providing the data that has made these companies rich? Governor Newsom announced plans in February for the introduction of a so-called digital dividend, which he applauded as a way for consumers to “share in the wealth […] created from their…