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Chicago to Apply 9% 'Netflix Tax'

Anomalism

Anomalism

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Thoughts?

Chicago to Apply 9% 'Netflix Tax' | DSLReports, ISP Information

Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1. The new tax is expected to net the city of Chicago an additional $12 million annually. "The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf). "This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically." "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative tells the Verge. "This is one approach."
 
What's next? Taxing GoogleTube?
 
It's Chicago, remember. Corruption is "business as usual".
 
Ugh, Chicago politics being terrible as usual.

The premise of taxing online services sets a dangerous precedent. The internet is one of the most vital sources of information, and government attempting to gain revenue off of online activities is tantamount to taxing access to information.
 
historically, interfering with bread and circuses hasn't turned out well for the elite.
 
If government could figure out a way to tax us for breathing they'd try it. If this works in Chicago, just wait... it'll be coming to a town near you.
 
I would think this would include online pay porn, assuming that still exists.
 
AliHajiSheik said:
I would think this would include online pay porn, assuming that still exists.
Click to expand...

Dunno... but what about online gambling. Now that also could be considered "electronically delivered amusements" couldn't it?
 
AliHajiSheik said:
I would think this would include online pay porn, assuming that still exists.
Click to expand...

In that case I figure the $12M projection is low....like by a factor of 1000.

Hmmm...I wonder if city officials who view porn on their work computers will have to pay the tax?
 
Is Netflix based in Chicago? What's to stop them from just refusing?

Chicago has no standing whatsoever to tax Netflex and needs to be told to **** off.
 
Korimyr the Rat said:
Is Netflix based in Chicago? What's to stop them from just refusing?

Chicago has no standing whatsoever to tax Netflex and needs to be told to **** off.
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yea I don't see how they can tax something that isn't based in that city.
Netflix wouldn't have to comply and there is nothing that Chicago can do to stop them from broadcasting it there.

there is no way that internet companies could regulate it.
 
AliHajiSheik said:
I would think this would include online pay porn, assuming that still exists.
Click to expand...

i thought that died in the 90's,heck i remember viewing free stuff on a 56k modem(before that i had a 14k modem way tooo slow for porn)and even then they figured out advertisements got them more money than subscription.
 
Anomalism said:
Thoughts?

Chicago to Apply 9% 'Netflix Tax' | DSLReports, ISP Information

Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1. The new tax is expected to net the city of Chicago an additional $12 million annually. "The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf). "This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically." "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative tells the Verge. "This is one approach."
Click to expand...

Blatantly unconstitutional, and I'll be very disappointed if it doesn't get challenged in court and thrown out.

Such online services would clearly fall under “interstate commerce”. Only the federal government has the authority to regulate or tax interstate commerce, if such authority exists at all.
 
Anomalism said:
Thoughts?

Chicago to Apply 9% 'Netflix Tax' | DSLReports, ISP Information

Netflix service in Chicago is about to get notably more expensive. On the hunt for new revenue, Chicago's Department of Finance is applying two new rules that would impact companies like Netflix and Spotify. One covers "electronically delivered amusements" and another covers "nonpossessory computer leases"; together they form a unique and troubling new attempt by cities to tax any city resident that interacts with "the cloud. According to the Chicago Tribune, streaming service providers need to start collecting the tax starting September 1. The new tax is expected to net the city of Chicago an additional $12 million annually. "The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf). "This includes not only charges paid for the privilege to witness, view or participate in amusements in person but also charges paid for the privilege to witness, view or participate in amusements that are delivered electronically." "Jurisdictions around the world, including the US, are trying to figure out ways to tax online services," a Netflix representative tells the Verge. "This is one approach."
Click to expand...

If you live in Chicago........ change the address on your Netflix account to an address in another city of someone you know and trust.

**** that city.
 
Ockham said:
Dunno... but what about online gambling. Now that also could be considered "electronically delivered amusements" couldn't it?
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World of Warcraft or other online gaming subscriptions?????
 
Ockham said:
If government could figure out a way to tax us for breathing they'd try it.
Click to expand...

They are already there...the EPA does just about whatever they want to.
 
Anomalism said:
"The amusement tax applies to charges paid for the privilege to witness, view or participate in an amusement," states the city's new ruling (pdf)."
Click to expand...
Sounds like the next time people go to see these Chicago politicians in action, it'll cost them an extra 9%. :lol:
 
SocialDemocrat said:
Ugh, Chicago politics being terrible as usual.

The premise of taxing online services sets a dangerous precedent. The internet is one of the most vital sources of information, and government attempting to gain revenue off of online activities is tantamount to taxing access to information.
Click to expand...

I thought you guys liked taxes.
 
Chicago should have a "gunfire tax, demanding $1 for every shot, $2 for every hit and 3$ for every death.... they could make a fortune.
 
Democrats never met a tax they didn't like
 
Jeez...pretty soon we will need a new internet so that we can have the freedom that the old internet had way back when.

Almost makes me miss the days when the internet was wide open and you would be up most of the night downloading 8 pictures of beautiful women.

Almost.
 
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