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A 'Netflix Tax'? Yes, and It's Already a Thing in Some States (usatoday.com)
An anonymous reader shares a report: Your monthly bill for Netflix, Amazon, Hulu and other streaming entertainment services could go up soon as states such as Illinois try to find ways to offset declining sales taxes and other revenue shortfalls. Chicago, Pennsylvania and Florida have already passed a so-called Netflix tax, and cities such as Pasadena, Calif. have broached the issue. These taxes can translate to additional fees of less than $1 each month to consumers. But over the months -- and tacked onto multiple streaming subscriptions -- they might add up to $50 or more each year. Netflix, consumer tax groups and tech trade organizations have voiced their opposition to such taxes, warning they can be unfair and deter innovation. Some opponents have initiated legal challenges, and at least one state has shelved plans after a court decision. But state and local governments aren't likely to halt fresh efforts as falling pay-TV subscriptions and video rentals mean there's less opportunity to tax cable bills or charge sales tax at the cash register.
Your monthly bill for Netflix, Amazon, Hulu and other streaming entertainment services could go up soon as states such as Illinois try to find ways to offset declining sales taxes and other revenue shortfalls.
Illinois sales tax revenues (2016 is the last table available) are actually rising:
In fact, sales tax revenues are up around 10% over 4 years. If you look at the table, excise taxes are flat and gas taxes are up. Income, gaming, and other taxes are down. Income tax being down is a no brainer with the economy how it is.
If sales tax revenues go up 10% over 4 years (in a state with one of the highest sales tax rates in the nation) and they are looking for more ways to tax, then there is a serious problem with fiscal policy. Even if you factor in the decline in income, gaming, and other taxes the total decline is 10%. If a 10% decline over fours years wreaks that much havoc, then, well, there is a serious problem with fiscal policy.
In the case of Illinois, that is exactly what it is. Can't speak for the other places, but Illinois is on the brink of insolvency. Apparently corruption does eventually weigh to heavy.
Probably not enough. Consider property taxes where I live run about 2.5% They also tax biz property. Same rate.
This is my favorite Item on my DSL (Century Link) phone bill. What the heck is that. It's not a govt tax. $5 goes to Century link. So why isn't it part of the advertised price. If it's a gov't allowance they must earmark to pay for expansion then why hasn't my DSL service improved in 20 years?
I also wonder why companies that do sell what they sell at the advertised price (like T-mobile does) don't make a bigger deal of their honesty (at least honesty about the cost) because customer's hate these creeping fees
Some drink at the fountain of knowledge. Others just gargle.