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Tyler Durden | Zero Hedge
The government has never met a novel idea or consumer friendly product that they didn’t want to tax.
The latest case in point? Legislators are now trying to tax Netflix and any other type of content that can be downloaded or streamed. The idea is being pushed forward in Georgia, where lawmakers are proposing a tax on digital video, books, music and video games, according to a new piece in the Atlanta Journal Constitution.
Lawmakers are reportedly being coaxed by “dozens of lobbyists” working on behalf of major communication corporations. To the layperson, this means that the cost of services like Netflix, Hulu and Spotify would all go up.
Streaming content has become a customer-centric and cost efficient service that allows the consumer to cut prices on their entertainment by selecting only what they need. Legislators and internet providers see it as a giant pool of untapped cash that could be used to help build infrastructure in economically depressed areas of Georgia.
Those who are already connected to the Internet would wind up bearing the cost of a 4% tax that would go to benefit residents who don’t have high-speed access to online products yet. Georgia is just the latest state to consider this tax and similar proposals have been introduced in legislatures across the country.
The proposal pits customers against communication companies, like AT&T, who stand to profit as the tax would replace existing higher taxes on cable TV, phones and broadband equipment. About 66% of people in Georgia oppose the idea of taxing internet, TV and phone to raise money for rural internet. For a Netflix customer that pays $12.99 a month, a 4% tax would cost 52 cents per month, or $6.24 per year.
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