Chicago launches 9% tax on internet streaming, Xbox, Netflix, cloud services

[KriszDev]

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 video game 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.

Read more at: http://www.nationalreview.com/article/421516/stop-internet-streaming-tax

On one hand liberals are saying making the minimum wage isn't a livable wage, on the other hand how can it be livable when what it buys is taxed to the hilt? This 9% tax will hit families where their only or primary source of entertainment is internet based. This tax also raises the cost of these internet services far more than the rate of inflation and far more than most people can expect to get in a raise.

How can liberals push for subsidies for poor people but then tax them when they use what's subsidized - the internet.

[Adamsux]

They wanted tax and spend liberals, they got them.

[Daewoo]

where exactly doe this tax money go I wonder?

[peterson33]

where exactly doe this tax money go I wonder?

Into the various bankrupt city pensions.

Gotta keep those $100k+ salary government employees happy so they can be motivated to spread the word about the evils of a capitalist system.

[godlyitems]

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 video game 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.

Read more at: http://www.nationalreview.com/article/421516/stop-internet-streaming-tax

On one hand liberals are saying making the minimum wage isn't a livable wage, on the other hand how can it be livable when what it buys is taxed to the hilt? This 9% tax will hit families where their only or primary source of entertainment is internet based. This tax also raises the cost of these internet services far more than the rate of inflation and far more than most people can expect to get in a raise.

How can liberals push for subsidies for poor people but then tax them when they use what's subsidized - the internet.

Over 12,000 people have been shot in that city since 2010, but the Democrats decide that the most pressing issue facing the city is Netflix.

[rio3232]

On one hand liberals are saying making the minimum wage isn't a livable wage, on the other hand how can it be livable when what it buys is taxed to the hilt? This 9% tax will hit families where their only or primary source of entertainment is internet based. This tax also raises the cost of these internet services far more than the rate of inflation and far more than most people can expect to get in a raise.

How can liberals push for subsidies for poor people but then tax them when they use what's subsidized - the internet.

out of curiosity... is this an additional 9% on top of the recently raised sales tax up to 10.25% for city of chicago residents? or had they simply not been charging sales taxes on these "internet" style related purchases, so now they are equal to any other vendor in the local municipality?

[issacsy]

I guess someone's going to have to explain this...Netflix is not the "internet". You need the internet then you can get Netflix.

[Nora12322]

I guess someone's going to have to explain this...Netflix is not the "internet". You need the internet then you can get Netflix.

No clue why you thought that was needed ? lol....

[abasin]

So, most people will now cut back on how much streaming data they use... by something like 10-20%.

When they raise the taxes to 20%, people will cut back their use by 30-40%... and begin to move out of the area.

The Government will collect LESS money, not more, within a few years, and the poverty will grow, and fester, and spread...

[rio3232]

Over 12,000 people have been shot in that city since 2010, but the Democrats decide that the most pressing issue facing the city is Netflix.

In a way this is a pressing issue for the city... since its so unsafe to leave your home after sunset, you need in-home entertainment since your family can no longer go to a restaurant or theater without risk of being shot and killed... so clearly this is a key issue... how messed up is that joke!

[ezly]

So, most people will now cut back on how much streaming data they use... by something like 10-20%.

When they raise the taxes to 20%, people will cut back their use by 30-40%... and begin to move out of the area.

The Government will collect LESS money, not more, within a few years, and the poverty will grow, and fester, and spread...

You mean like Detroit?

[Denker]

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 video game 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.

Read more at: http://www.nationalreview.com/article/421516/stop-internet-streaming-tax

On one hand liberals are saying making the minimum wage isn't a livable wage, on the other hand how can it be livable when what it buys is taxed to the hilt? This 9% tax will hit families where their only or primary source of entertainment is internet based. This tax also raises the cost of these internet services far more than the rate of inflation and far more than most people can expect to get in a raise.

How can liberals push for subsidies for poor people but then tax them when they use what's subsidized - the internet.

Over 12,000 people have been shot in that city since 2010, but the Democrats decide that the most pressing issue facing the city is Netflix.

Over 12.000 people shot in just 5 years?
Boah jesus christ that's just possible in the US compared to all other western countries. Pretty sad for the people over there.
And that new tax law must be a joke. Stupid idea Chicago!!

[Mickeyb]

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 video game 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.

Read more at: http://www.nationalreview.com/article/421516/stop-internet-streaming-tax

On one hand liberals are saying making the minimum wage isn't a livable wage, on the other hand how can it be livable when what it buys is taxed to the hilt? This 9% tax will hit families where their only or primary source of entertainment is internet based. This tax also raises the cost of these internet services far more than the rate of inflation and far more than most people can expect to get in a raise.

How can liberals push for subsidies for poor people but then tax them when they use what's subsidized - the internet.

Over 12,000 people have been shot in that city since 2010, but the Democrats decide that the most pressing issue facing the city is Netflix.

Over 12.000 people shot in just 5 years?
Boah jesus christ that's just possible in the US compared to all other western countries. Pretty sad for the people over there.
And that new tax law must be a joke. Stupid idea Chicago!!

Put all aside, it's still a great city! No but seriously, this tax is ridiculous!!

[Slark]

Put all aside, it's still a great city! No but seriously, this tax is ridiculous!!

This is one of the most ridiculous taxes I've heard about recently. Soon we will have taxes on every major internet service: youtube tax, amazon tax, facebook tax (it wouldn't be that bad).
It is painful to watch how government is greedy to the point they want to tax everything. That is why bitcoin might be a cure for growing tax rates (for now at least).

[pitham1]

Put all aside, it's still a great city! No but seriously, this tax is ridiculous!!

This is one of the most ridiculous taxes I've heard about recently. Soon we will have taxes on every major internet service: youtube tax, amazon tax, facebook tax (it wouldn't be that bad).
It is painful to watch how government is greedy to the point they want to tax everything. That is why bitcoin might be a cure for growing tax rates (for now at least).

Just curious - How do they know who is subject to this tax? How would they differentiate between somebody sitting in China and somebody sitting in Chicago, signing up for the same service?

[Pathi]

Put all aside, it's still a great city! No but seriously, this tax is ridiculous!!

This is one of the most ridiculous taxes I've heard about recently. Soon we will have taxes on every major internet service: youtube tax, amazon tax, facebook tax (it wouldn't be that bad).
It is painful to watch how government is greedy to the point they want to tax everything. That is why bitcoin might be a cure for growing tax rates (for now at least).

Just curious - How do they know who is subject to this tax? How would they differentiate between somebody sitting in China and somebody sitting in Chicago, signing up for the same service?

This is my question also. Maybe they get the info from Netflix etc?

[Slark]

Put all aside, it's still a great city! No but seriously, this tax is ridiculous!!

This is one of the most ridiculous taxes I've heard about recently. Soon we will have taxes on every major internet service: youtube tax, amazon tax, facebook tax (it wouldn't be that bad).
It is painful to watch how government is greedy to the point they want to tax everything. That is why bitcoin might be a cure for growing tax rates (for now at least).

Just curious - How do they know who is subject to this tax? How would they differentiate between somebody sitting in China and somebody sitting in Chicago, signing up for the same service?

Isn't is simple? They are spying on us. They know exactly who is using what service online. Your internet provider is enough to gather info about your internet activity, they won't need NSA for this.
Also they will make services in question to send them list every user from Chicago I guess. We can just wait and see.

[TPTB_need_war]

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 video game 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.

Fabulous. They are creating economic demand for a high-latency, high-bandwidth anonymity network.

Working on it...

[yayayo]

If it can't run away, tax it!

It's sad to watch this, but governmental bodies have the tendency to grow aggressively like a cancerous tumor, consuming all resources in reach. If people don't find a remedy someday they will be taxed based on the volume of air they breath.

ya.ya.yo!

[Oldminer]

Think yourselves lucky - we get charged 10% GST here in Australia for local media streaming services and Netflix is getting the same tax applied http://www.businessinsider.com.au/budget-online-services-such-as-netflix-will-be-charged-gst-in-australia-2015-5