Pennsylvania To Apply 6% 'Netflix Tax' (allflicks.net)
An anonymous reader writes: Governor Tom Wolf of Pennsylvania has signed into law a new revenue package that will require residents to pay a 6% sales tax on their streaming subscriptions. AllFlicks reports: "Though the term 'Netflix tax' has become popular, laws like this don't just affect Netflix -- they also affect competitors like Hulu and HBO Now. App purchases and ebooks are also affected. They recently decided on a hefty $31.5 billion budget, and they came up $1.3 billion short of paying for it. The government is trying to close that funding gap, and streaming subscribers are being stuck with the bill." Magazine and newspaper subscriptions, as well as digital versions of the Bible, will be exempt from the digital downloads tax, reports CBS Local News in Pittsburgh.
more money for prisons, cops, spies and bombs!
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Start taxing religions with their mega churches, it is nothing but a business.
I watch Netflix religiously, surely that is cause for an exemption if the Bible gets one.
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So will YouTube and Twich be affected? this just another .. oh they make money lets tax it so we can pay for our incompetence ... once somethings taxed, its never removed, they just add more taxes to cover bad decisions. AKA in business terms, Other Peoples Money (OPM)
It's not a typo if you understood the meaning!
For those of you playing at home those are taxes that disproportionately impact the poor, working poor and (in this case) working class. They're worth double points because not only do you get to use money to fund tax cuts on the 1% but the people you tax get angry and start demanding tax cuts; which you can oblige with even _more_ tax cuts for the 1%. Uncle Rove calls this "Starve the Beast".
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I assume this is like other state taxes (I'm in CA) where consumers are supposed to self-report how much money they spent on the taxable goods every April.
If that is the case, I don't see the state of PA being able to recoup much of that $1.3 billion budget shortfall.
From TFA: "Magazine and newspaper subscriptions, as well as digital versions of the Bible, will be exempt from the digital downloads tax."
What... the Torah, Quran, and Bhagavad Gita and hundreds of others need not apply? Nice lawsuit trolling there.
-- Insert witty one-liner here. --
back to pirating content.
What's the big deal? Many states want you to pay use taxes for online purchases, regardless of the amount. I have a Nebraska address and already pay sales tax, which is automatically charged to me. That said, isn't it the responsibility of Pennsylvania residents to pay taxes, rather than forcing a business in another state to collect sales tax? That would seem to be unconstitutional, since the federal government solely regulates interstate commerce.
Magazine and newspapers have some or the more ridiculous pricing options out there, some of that money should diverted to tax as well.
As for the Bible, taxing it should encourage people to not pay for something that is in the public domain already.
I think this will be gone within 2 years, assuming Trump doesn't appoint 5 clones to the SCOTUS.
Sure seems to me that a special exemption for one particular work of fiction is a clear violation of separation of church and state. That, of course, is no surprise, as we live in a country where a family just trying to get by and raise their children is taxed on both income and property, but big rich churches go tax free.
I'm an American. I love this country and the freedoms that we used to have.
Doesn't this bump into the Internet Tax Freedom Act and the Trade Facilitation and Trade Enforcement Act of 2015?
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Glad to see the separation of church and state is alive in well in the U S of A!!!
"...digital versions of the Bible will be exempt from the digital downloads tax"
If they wanted an exemption that would do society some good, they should exempt textbooks, but then kids might get exposed to more of that heretical "science."
years ago.... No alcohol in groceries, beer distributors, taxes eclipsed only by New York. Intrusive laws. Cold weather. Terrible roads. Taking years to move the most rural interstate to 70mph. Moved away in the 1980s. Never looked back.
is a government agent
I'm sure PA can use this money to finally fix it's crumbling infrastructure and crater sized potholes (note for non-Pennsylvanians reading this, if you were from Pennsylvania, you would find this to be a funny joke).
Does this really surprise anyone since it's coming from the state with a compressed air tax?
Full text of enacted bill.
FULL TITLE: Act 84 of 2016
EXPLANATION: http://www.revenue.pa.gov/Gene...
SUMMARY:
http://www.revenue.pa.gov/Gene...
FULL TEXT:
http://www.legis.state.pa.us/c...
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How does PA tax Amazon Prime Instant Video usage?
What If they'll start busting people for not paying taxes for all of their torrenting? You know, Al Capone style...
So is my fart taxable? It was compressed up until its expulsion from my anus.
will kill this tax in court......
This doesn't seem legal. Don't get me wrong, I get that this may not defy the letter of the law, but it certainly sabotages the intent. First the liquor, now this. Who is gonna move to PA now unless they absolutely have to?
dumb slashdot atheists miss who is behind this. Guess what large competitor of netflix, hulu and streaming media is based in this state?
I paid taxes on my income, then when I spend the money on a netflix subscription I am taxed again.
If you apply various taxes to my same pool of money enough times you'll eventually have taxed me 100%. Why is there no limit?
That would be simpler and not create a stupid new law that unevenly spreads the tax burden. You know how judges need to have law degrees? Maybe legislators should be required to have economics degrees.
Seems the easiest thing to do is to get a credit card using an out-of-state friend's address.
It would be amusing if Netflix et al. opted to take a small hit to their revenue and made their services free to all current customers in PA, thus denying the state the taxes they projected.
So, government employees shouldn't have to pay taxes, since that money is actually collected taxes?
some don't. See, the world is complicated like that. Go watch some speeches from Bernie Sanders on progressivism. Folks like him, Barry Obama & even Hilary are getting stuff done. There's 40 years of regressive policies by Regan et al and billions were spent making that happen. You're not going to change that by pouting about the opportunists among the Democrats.
And nice straw man ya got there. Shame if anything were to happen to him...
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Most translations of the Bible into contemporary English are copyrighted and not free cultural works, with the exception of the World English Bible.
I have said this before, again, and again... Normal humans, the populace, have been cutting back and reducing budgets for over 15 years now, yet government continues to increase every year. This is an implosion waiting to happen. At some point these government fuckers are going to have to accept a revolution up their ass.
They raise taxes in the 70's and jobs left, so they raised taxes in the 80's more jobs left and people left, raised taxes again and more jobs left and more people left. So yet again they are on a track to raise taxes to make up the shortfall of money they need. I am so glad I escaped PA!
If "digital versions of the bible" are tax exempt, how about digital versions of the koran? Or the tao te ching? Or the upanishads? Or the bagavad gita? Or even whatever the FSM crowd wants to say is their holy book?
Maybe we should just keep religious preference out of our laws... huh... radical thought...
From TFA: "Magazine and newspaper subscriptions, as well as digital versions of the Bible, will be exempt from the digital downloads tax."
What... the Torah, Quran, and Bhagavad Gita and hundreds of others need not apply? Nice lawsuit trolling there.
Pretty sure this is right out of the gates, unconstitutional. Doesn't equal protection apply here? Calling out the bible specifically and not other religious texts is financial discrimination against everybody who doesn't believe in zombie jebuz on a stick. Also, unworkable: How can you identify which bits and bytes I am downloading are bible bits and bytes, and which ones are the porn version of 'The last temptation of Christ'. Seems unenforceable.
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I think this will be gone within 2 years, assuming Trump doesn't appoint 5 clones to COITUS.
TFTFY
Here's the thing... Netflix does not have a physical presence in PA. Therefor, they are not legally obligated to collect sales tax from PA residents.
PA intends to try and cover a budget shortfall by relying on the honesty of citizens to understand what Use Tax is, and to file and pay it.
That's pretty dumb. Wait no, that's INCREDIBLY dumb. Not only does Netflix not have a physical presence in PA, but likely no one else does either.They maaaaaaaay manage to get Apple. Unless of course iTunes is actually structured under an umbrella corporation or is sheltered offshore like everything else of course.
Again, they can't make any of these providers collect these taxes. So if they know they can;t, or rather won't, collect any additonal taxes, then why are they doing this? To force the Fed to grant states the right to collect those taxes from outside their borders!
What? Oh, yeah, see, when they add tons of digital goods and services to their Use Tax lists, and then collect none of it because, duh, no one reports it cause people hate taxes no matter how much they are actually necessary, then they go crying to the Fed. Get enough states crying to the Fed and the Fed will have to do something about it, since that's pretty much what all those Senators and Legislators are actually supposed to do (represent their state's concerns I mean). So yeah, this is PA stepping up to the plate to take a swing at getting the Fed to reverse course and grant states the right to collect sales from non-resident entities.
I moved to New Hampshire to take part in the Free State Project. While the FSP inc isn't free enough for me I'm still glad to have moved to a state with other like minded individuals whom are focused on getting rid of government taxes and 'services'. People here are for the non-aggression principle which basically states you shouldn't utilize violence against peaceful people (ie perfect example is when government uses violence to get people to pay taxes, or you physically attack someone). New Hampshire is already pretty friendly to those of us who wish to live free of invasive government programs. New Hampshire doesn't require vehicular insurance, seat belts, or even have a general purpose sales tax.
Now we're trying to get more people who believe in liberty and individual rights and whom want less government to move here. We've already hit 100% of the goal to get 20,000 people to sign an intent to move statement and 10% of those 20,000 have already moved! And it's only been since March that people were even suppose to start planning a move (people who signed agreed to move within 5 years). Now we just need to stop accepting federal dollars and eliminate all those pesky federal-mandated laws and get rid of things like license plates, drivers licenses, and other similar victimless legislation. Some of us actually value our freedom over a needlessly over-protective violent police state which is 'just' trying to protect us (yea- right- no thank you- if I want health insurance I'll get health insurance- I don't need someone forcing it down my throat, and yes, I do have health insurance for which I pay for pre-government requirement).
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So the government want a 6% tax on electronic media and you blame the companies? You actually advocate communism meaning state run companies so they would get 100% of all money and then get to decide how much of that money you get to spend and how much they get to spend.
Yeah sounds WAY better...
I'm in favor of ISPs / streaming video companies to just deny any usage of their product in PA. Thus deny the tax and get people upset at the government. "WHAT IF THE BUSINESS DOESN’T COLLECT THE TAX? The customer should report the 6 percent tax on the purchase as use tax on their Pennsylvania personal income tax return the following year." How is anyone going to track this to let the government know what they've streamed and pay it? On the flip side, it could be used as a catch all to incriminate anyone.
If digital copies of the Bible are exempt for religious purposes the Last Week Tonight should also be exempt.
"Magazine and newspaper subscriptions, as well as digital versions of the Bible" Interesting... somebody needs to create a media container that uses bible verses in place of whatever functions are usually in there.
Pennsylvania long the Texas of the East....is fast joining it's northeastern neighbors and becoming more and more like NY and Connecticut. Still not as bad as Connecticut though.
As for Netflix tax, remember, I already pay a tax on cable internet. There are supposed to be regulations that ensure anti-competitive behavior. But the Commonwealth of PA never acts on them. See, we pay taxes in exchange for certain responsibilities and actions on the part of the government. Problem is, we don't receive those.
I should also mention that I recently received notice of a pending citation for having an inflatable kiddie pool. Mine is advertised as 30" which exceeds the townships 24" mandate. So essentially I need to get a building permit that is likely to cost several times more than my kiddie pool. Also please note that I have yet to get even 24" of water into said pool.
Hmmm... So today I'll be on a VPN from New York - tomorrow.... The world...
Are they also exempting other religious texts ? Is this not a violation of the separation of church and state ? Why not ?
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Streaming Services are by definition a Service. Other Services in the state are taxed at 6%. Streaming services can be considered a Luxury item, nobody needs netflix to live. You won't die without it.
the Vaping taxes are essentially the same thing. You don't need to vape. It has health issues just like regular smoking. Kids pick it up as being "cool". Tax it like cigarettes..boom done. I can think of about 5 Vape stores in my town, why on God's green earth do we need 5 in small town? Survival of the fittest, some will close.. I'm sorry. oh well.
Do I like taxes...no. But Wolf also got passed a decent Education budget, finally after years of crap from Rendell and Corbett. So if you are going to tax me 6% for netflix and Amazon Prime, oh well. Maybe my kids will get a better computer system in their school. Or maybe their teachers will get a better contract and be more engaged in the class room .
State taxes don't necessarily suck 100% of the time. there are real benefits that can happen. People need to get their heads out of their asses and realize we all need to work together as a community to keep things from going to total shit. Taxes are one of the ways we are able to do this. /end rant.
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I don't recognize any tax on Internet services or income, and will not report or pay any such thing.
Why is this a surprise? No government has ever resisted the chance to tax something new. However, the Internet is gutting traditional brick and mortar businesses, resulting in significant loss in tax revenue for state and local governments. If we want all the requirements of modern communal life which government has been tasked to provide, we need to find a way to pay for it. Taxing users has some serious flaws, but, Netflix is a luxury, not a necessity of life. Taxing luxury should always be the first revenue option for government, IMHO.
As long as they don't tax torrents, I'm OK.
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Do you think a Governor that just gets a job paid for by the public gets to start charging the public whatever he feels like it just because Jews?
Set a precedent here. Beat Tom Wolf until his lips need to be sewed back on. No more taxation without representation. It is why the Europeans left to America in the first place. If you allow taxation without representation again, where will you flee too? North Pole?
Beat the skin off that mother fucker.
So if I get a PO box in a state that doesn't tax I will be able to make that my billing address and avoid this tax?
Well, gee, corporations own the government, so "government" taxing and dictating is corporations taxing and dictating.
Also, hilarious that it exempts the Bible. Pandering to Pennsyltucky at its finest. I was wondering how they'd top squandering taxpayer money declaring 2012 the year of the Bible.
Yet another tax to complicate our already insanely complicated tax code. When is the government going to learn to spend within its means instead of playing a shell game with various taxes to trick people into thinking they're "getting the better deal". I estimate over a third of my earnings already go to feed the beast and that is after I get my check from the IRS/state.
We the People make on average, $48,000 a year. Your average congressman make $250,000 a year. Before you TAX US, maybe we should cut your paycheck to 1979 levels. (Senators and the President make even more!!!)