Democrats Propose Tax on Netflix and Uber to Fund Public Transportation

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New York State Democratic legislators are looking at a tax increase to fund public transportation.

To prevent commuters from facing fare hikes, Democratic members in New York introduced a plan to impose a 4 percent sales tax on audio and video streaming services.

According to The Wall Street Journal, New York Governor. Kathy Hochul, D. met privately with legislative leaders this week to agree on a spending plan of approximately $227 billion before the state’s current budget expires on March 31st.

IndieWire claims that such taxation has been done before.

IndieWire was informed by a Netflix representative that New York subscribers are subject to a local sales tax of 4 percent. IndieWire reported that this is not the first state to tax a streaming bill. Washington, North Carolina, and Pennsylvania are just a few of the more than a dozen states that impose sales taxes on streamers.

Netflix’s tax information page is a separate page on its official website. It informs subscribers that rates may vary by country, territory, or city and that they are based upon the rate in effect at the time you pay Netflix. These amounts may change with changes in tax laws.

Andrew Rein, President of the Citizens Budget Commission, told the Wall Street Journal that New York’s taxes are already very high and that it is threatening our ability to compete for residents and businesses.

Lee Zeldin, a former New York Representative and Republican candidate for the governor tweeted his response.

“Other than the higher taxes, more crime, elimination of gas stoves, less freedom, lower test scores, and other doozies, life in Kathy Hochul’s New York is going just swell for her ‘apostles’ who haven’t left yet,” he wrote.