Chicago introduces 9% tax on all major streaming services and their content

innerspaceboy · 07-24-2015, 07:55 PM

Posted yesterday at nationalreview.com:

by SAMUEL A. ROSADO
July 23, 2015 11:41 AM

Quote:

Another bad idea from Chicago.

Not content with making explicit attacks on Uber, AirBnB, and the “sharing economy” as a whole, Democrats have launched an even more egregious attack on something that rivals sex, alcohol, and food on Millennials’ “can’t survive without” lists: streaming entertainment.

As of July 1, 2015, citizens of Chicago who enjoy their Netflix, Spotify, Pandora, Amazon Prime, Xbox Live, and/or PlayStation Network subscriptions are now subject to the city’s 9 percent “Amusement Tax” for the privilege. Further, should you decide to digitally rent a movie or videogame via these services, the 9 percent tax would be applied for every rental. In other words, Chicago now taxes its citizens 9 percent on their $99 annual Amazon Prime subscription because of its instant video/music service, plus 9 percent for each $3.99 digital rental through the same service. The same applies for rentals and music services offered directly from Microsoft and Sony.

Fans of Sony’s PlayStation Network ecosystem are hit hardest: a 9 percent tax each on their PlayStation Plus subscription, PlayStation Music, PlayStation Now (videogame streaming), and Sony’s recently introduced PlayStation Vue live-TV service. Throw in other rental/subscription services such as Hulu, Gamefly, Google Play, HBO Go, iTunes, and Vudu, and you get a sense of the sheer breadth of this tax on Chicago consumers’ digital lives.

It’s not just individual consumers who are targeted by Chicago Democrats. Small businesses that use cloud-based services such as Microsoft Office 365, Google Apps for Business, or Amazon Web Services are also subject to a new tax for such use. Pay for access to Monster.com’s database of résumés? Taxable. Pay for access to potential hires’ consumer-credit scores? Taxable. Are you a law firm and subscribe to Westlaw or LexisNexis? Taxable.

Considering these services’ primary consumer demographic, it at first seems odd to see Democrats publicly challenge them through regulation and taxation, since their youngish base are the ones who do the most streaming. However, scratch the surface and you’ll see that the rationales are all too familiar for the progressive Left. Regarding Uber, Hillary Clinton and Bill de Blasio are beholden to their union donors, who are offended by Uber’s worker classifications and good old-fashioned competition. For Chicago Democrats, they have to shore up a $1 billion budget shortfall somehow, and brick-and-mortar video rentals have gone the way of travel agencies. However, unlike prior examples of Democratic attacks on business and consumers via tax and regulation, these new fronts are far more frequent and visible to the average consumer. All a Chicago millennial needs to do is unlock his smartphone and count the apps that are now more expensive because of a rule interpretation.

Republican candidates have been granted an excellent opportunity thanks to Clinton et al. The standard GOP retorts to these actions have been broad and vague talking points consisting of Democrats’ attacking “small businesses” or increasing taxes on “everyday household goods.” Specificity works far better; especially household names like Netflix, Amazon Prime, Uber, and Xbox Live. A Millennial may yawn at a speech on income-tax simplification, but mention Democrats’ plans to make it more expensive to binge watch Sons of Anarchy and play DOOM online, and watch the pitchforks selfie sticks come out faster than you can say “listicle.”

Jeb Bush has already gone on the offensive against Clinton’s Uber assault, and Ashton Kutcher and Kate Upton have publicly called out de Blasio, further bringing the issue into the average American’s mainstream consciousness. However, the younger candidates — Cruz, Rubio, Jindal, and Walker — should highlight what just occurred in Chicago, and signal the warning to the alleged Democratic voting bloc. It would be the height of naïveté to believe Chicago’s new tax will remain within the city limits, so put Clinton and Sanders on blast and ask if they’re open to new taxes on tens of millions of gamers, families, and business owners enjoying the fruits of an open Internet marketplace. “Out of touch” would be an understatement.

— Samuel A. Rosado is an attorney residing in New Jersey. You can reach him on Twitter at @SamARosado.

Read more at: Stop the Internet Streaming Tax | National Review Online

I normally don't opt for memes, but this one sums it up quite well.

Plankton · 07-27-2015, 10:04 AM

This is right on par with crook county politics. I don't use any streaming services, but the residual effects of the tax could be a pain... just like everything else in this county. My room mate who owns the house we live in is having a 5 day garage sale just to pay the property taxes. They're huge. He's selling his deceased mothers belongings, which consist of 40 years worth of Home Shopping Network junk. It's not going well, and it's looking like I'll have to bail him out. I'm in the process of saving for another home myself, so I'll be looking for something out of the county. All I have to do is move a little to the south or west. **** crook county, I'm tired of it.

Aux-In · 07-28-2015, 01:20 PM

An "amusement tax?" Unreal. Leaves a lot of room for loopholes if you ask me. I could argue that I'm listening to a Britney Spears album...for healing purposes.

**Frownland** · 07-28-2015, 01:47 PM

Quote:

Originally Posted by aux-in

An "amusement tax?" Unreal. Leaves a lot of room for loopholes if you ask me. I could argue that I'm listening to a Britney Spears album...for healing purposes.

You could back it up with research if you say that you use it to sustain your mental health.

Music Benefits Both Mental And Physical Health - Medical News Today

And an amusement tax is a ridiculous concept, hookers are expensive enough already.

07-27-2015, 10:04 AM	#2 (permalink)
Plankton Just Keep Swimming... Join Date: Apr 2012 Location: See signature... Posts: 7,766	This is right on par with crook county politics. I don't use any streaming services, but the residual effects of the tax could be a pain... just like everything else in this county. My room mate who owns the house we live in is having a 5 day garage sale just to pay the property taxes. They're huge. He's selling his deceased mothers belongings, which consist of 40 years worth of Home Shopping Network junk. It's not going well, and it's looking like I'll have to bail him out. I'm in the process of saving for another home myself, so I'll be looking for something out of the county. All I have to do is move a little to the south or west. **** crook county, I'm tired of it. __________________ See location...

07-28-2015, 01:20 PM	#3 (permalink)
Aux-In Wrinkled Magazine Join Date: Jan 2015 Location: In Time Posts: 467	An "amusement tax?" Unreal. Leaves a lot of room for loopholes if you ask me. I could argue that I'm listening to a Britney Spears album...for healing purposes. __________________ Reviews l YouTube Playlist: Another Dimension "All over a bowl of bitter beans."