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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.

4 of 135 comments (clear)

  1. govenrment loves telecom by stabiesoft · · Score: 4, Interesting

    Taxes and fees are crazy high on phone (land is really crazy with the subscriber fee). The local city utility loves to tack on weird stuff onto the electric/water/trash/sewer bills. They just figure people will not notice. Netflix is a service almost like telco, so really I'm surprised it took them this long.

  2. This is what happens when you can't raise taxes by rsilvergun · · Score: 4, Insightful

    on the rich. The government still needs money to run. And despite what the rich's media outlets tell you there's no magic 'government waste' to cut that makes the need for taxes go away. So you either start cutting essential services (fixing roads, police, fire dept, etc. Not listing schools, we already cut those) or you come up with taxes like these that target the working class.

    The Working Class are the only ones with any money that don't have multi-billion dollar media empires and lobbying arms sticking up for them. The used to, we called those 'Unions' an shut them down because they got a little corrupt and so instead of fixing them we threw baby out with bathwater.

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    1. Re:This is what happens when you can't raise taxes by Rockoon · · Score: 4, Insightful

      If I moved to where my job is I'd need a 500% raise to afford a mortgage or the rent.

      The government is screwing you in multiple ways. Scarcity of housing is just one of the ways.

      Whats your reaction? Who are you blaming? What do you intend to do about it?

      Personally I vote. Every election. The one federal election every 4 years is the least of my concerns.

      What discussions have you had with the most local politicians? Do you even know who your town council is? Do you even know what they do?

      --
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    2. Re:This is what happens when you can't raise taxes by Gravis+Zero · · Score: 4, Interesting

      Or, alternatively, this is what happens when you destroy the job market...

      A) If environmental regulation is slowly becoming onerous then it's a sign you are doing something very wrong and should change. Frankly, companies that pollute the environment should be 100% financially responsible for cleaning it up.
      B) The renewable energy market has created 10x the number of jobs that it's "destroyed".
      C) Coal jobs are being lost natural gas, nothing else.

      The rich already pay 80% of all tax in the US

      $100K/yr isn't what it used to be, so not a qualifier for being "rich". How much are the people that make $1M/yr paying? Also, instead of just the income tax, let's include ALL taxes. For some reason taxation is highly regressive which means the people with the least end up paying the largest percentage. Let's turn that around.

      while the "poor" 45% Democrat voting block who thinks the rich don't pay enough pay ZERO taxes

      The poor pay zero taxes because their pay hasn't increased for the last 40 years while the value of their income has decreased for the last 40 years which has caused them to fall below the poverty line. Yes, for some reason, you can have a full time job and still be impoverished because assholes aren't paying you what you are really worth.

      but enjoy all the general benefits as well as free healthcare, free housing, free food, free phones...

      Literally none of those things are free. I would also point out that Republicans voters are the ones who benefit the most from the ACA which is why despite having majority control of The Senate, The House and the presidency, Republican politicians were incapable and unwilling to reduce the coverage by the ACA.

      That said, the federal government as well as most states mentioned don't have an income problem, they have a spending problem.

      Yeah, who needs the police, firefighters, hospitals, schools or any of that shit, right? How about we cut subsides to all energy companies and farmers? Then lets go further and tax companies/farmers the exact amount of money that it costs to clean up their pollution. The free market would absolutely eviscerate the market of polluters as it exists today and solar would be the preferred energy source and beef would be 25x the cost of chicken.

      I'm all for the free market as long as they are taxed based on the amount of damage they do to the planet.

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