# In a live interview, Professor Paul Romer explains why he believes taxation can be used to incentivize tech companies to change their business models

1 Faculty News May 7, 2019 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg192x144.jpg?itok=yV529lwz)>

Excerpt from [Bloomberg](https://www.bloomberg.com/news/videos/2019-05-07/economist-romer-s-tech-industry-proposal-taxation-over-regulation-video) -- "The tax on digital ads creates an incentive to go back to a subscription model that many online firms use where people know what they pay and then compare it to what they get back. The tax I propose could also be progressive so that you pay a higher tax if you combine two firms."

[Watch the video](https://www.bloomberg.com/news/videos/2019-05-07/economist-romer-s-tech-industry-proposal-taxation-over-regulation-video)