For those of my readers ‘lucky’ enough to live in the Golden State of California, today marks a milestone in sales tax, when the CA state tax rate breaks the 10% ‘double digit’ boundary, to bring California near to the, or at the top of the ‘most taxed in the US’ list.
Part of the state revenue shortfall ‘rescue package’, the tax hike means many businesses in CA face more struggles in getting customers through their doors and spending money.
But all is not lost!
Some assistance is coming from a (relatively) small Federal government tax break affecting online marketing companies in the form of the Freedom of Optimization legislation contained within the Governments’ landmark stimulus package passed earlier this year.
In essence the legislation, introduced by Martin Dunlap, (R) IL, gives small businesses up to $20,000 in tax credit toward website optimization services – a boon for SEO companies everywhere.
According to the Kentucky Legislature sponsored Bill Watch site “promoting transparency in government“, the laws’ goals are 4-fold:
- Help US small / medium business (SMB) compete in the global marketplace
- Reduce load on Internet infrastructure – through better optimized sites
- Healthcare savings – By giving US citizens more relevant results a Government research group estimated a 4.1% reduction in stress-related psychological issues.
- Reduce energy consumption (Alliance to Save Energy study) by up to 24% – through less computer usage (less searches necessary to find results)
For SEO companies across the country this means a windfall at a time when many business organizations are cutting back on their marketing spends.
As a Search Engine Optimization proponent working in a medium sized business, I can only hope the tax breaks contained in the Freedom of Optimization legislation trickle down sooner than later. Not only will it mean more, and consistent business over the next 18 months (legislation earmarks 257 million dollars in tax breaks available until December 31st 2010) for our company, it also means that many of my business colleagues will finally have some justification for optimizing their sites “no more excuses!”
What does this mean to Google?
With a rise in spending and website optimization on the SEO side, I can imagine two scenarios.
- A decrease in Search Engine Marketing / Adwords spend, as businesses replace paid ads with better and more quality organic traffic
- An increase in SEM / Adwords spend, as companies struggle to compete with better optimized organic Search Engine Result Pages (SERP).
I don’t think Google is, or should be worried (in fact, they’re noted as one of the contributors to Representative Dunlaps’ campaign and lobby group.) More relevant results for search consumers is their ultimate goal and value, this legislation will certainly accomplish that.
Though a ‘small g government’ Libertarian, this time, I think Government got it right. Great news for SEO companies & Internet users everywhere!
More information is available at the Governments’ small business website www.business.gov
