Your Netflix Subscription May Soon Get Taxed to Make Up for Cable Taking Ls

Following similar moves in Chicago and Pennsylvania, other cities are considering a so-called "Netflix tax" to make up for cable's losses.

Watching Netflix on a MacBook
Image via Steven Guzzardi
Watching Netflix on a MacBook

Cable's not exactly dead, but it sure has been sweating the Netflix competition recently. Though you certainly don't need us or anyone else to remind you, Netflix packs a lot of inarguably fire content into its hella affordable streaming plans, all available for much less money than you willingly drop on other household staples like weed and glow-in-the-dark cunnilingus snorkels every month. But for the truly budget-conscious Netflix subscriber, some brewing tax changes may be a bit of a bummer.

Following similar moves in Chicago and Pennsylvania, the Los Angeles Timesreported several cities in California are actively "mulling" whether to employ so-called "Netflix taxes" to make up for all the money they're losing from punk rock AF cord cutters. Sacramento, Pasadena, and dozens of additional California cities could potentially revise existing tax codes to the tune of an added dollar (i.e. a 10 percent tax) to users' monthly Netflix price. The changes would also potentially include Hulu and other streaming competitors.

Others, however, aren't totally sold on the idea for legal reasons. "We're not leaving anything off the table," Robert Callahan, executive director of the Internet Association, told the Times Monday. "There are a number of questions we have about the legality of this." The Internet Association, which counts Netflix among its members, echoes the concerns of the California Taxpayers Association, which argues such changes can't go down without some sort of a public vote.

Netflix also isn't a huge fan of the idea of taxing up its services. "It is especially concerning when these taxes are applied to consumers without consent and in a manner that likely violates federal and state law," Anne Marie Squeo, a spokesperson for the streaming giant, argued.

But with obvious bangers like Luke Cage and vintage episodes of Frasier, will these taxes actually deter anyone from using Netflix on the regular?

No.

Latest in Pop Culture