Thursday, August 27, 2015

Why you'll be paying a 'Netflix tax' soon

The public sector which neither created or, like roads and public utilities, maintains the infrastructure for reliable use for commerce will be Taxing the Cloud across America. Cities and states across America (Chicago, Tennessee and Idaho) are attempting to implement streaming taxes associated with services such as Netflix, Hulu, and Spotify to help fill budgetary holes that never seem to close.

“Many [local goverments] have done it under the guise of ‘you can tax services as well,’ so I do think that it's a very predictable thing when you see these municipalities losing revenue from a big consumer area and essentially trying to replace that.”

The pressure to shrink the size and scope of government will only intensify as the global economy contracts. Unfortunately for most taxpayers, the public sector like all humans, finds it easier to raise taxes rather than voluntarily shrink in size.

Headline: Why you'll be paying a 'Netflix tax' soon

They’re calling it a ‘Cloud Tax,’ but it is sounding more to consumers like a Netflix tax. As more consumers turn to streaming video on services like Netflix (NFLX) and Hulu, and music on Spotify, states are looking to fill the taxes lost on the sale of tangible media goods



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