New York Democrats propose 4% tax on Netflix and Uber to fund public transportation

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State Democratic lawmakers in New York are considering a new tax increase to help fund public transportation. 

In order to prevent commuters from facing a fare hike, Democratic members of the New York state Assembly introduced a plan that would impose a 4% sales tax on video and audio streaming services. 

The Wall Street Journal reported that New York Gov. Kathy Hochul, D., met privately this week with legislative leaders to decide an approximately $227 billion spending plan before the current New York state budget expires at the end of March.

Commuters wait on the platform at the Times Square subway station in New York, US, on Wednesday, May 25, 2022.  (Stephanie Keith/Bloomberg)

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According to IndieWire, such taxation has occurred before.

"A Netflix rep told IndieWire that a 4 percent local sales tax already applies to Netflix subscribers in New York. This also wouldn’t be the first state to tax someone’s streaming bill; Florida, North Carolina, Pennsylvania, and Washington are among the two dozen or so states that apply sales taxes on streamers," IndieWire reported.

Netflix’s official website has an entire page devoted to its tax information, informing subscribers that "Tax rates can vary by country, state, territory and city, and are based on the applicable rate at the time of your Netflix charge. These amounts can change over time with local tax requirements."

July 20, 2010. A person uses Netflix in Palo Alto, Calif. Netflix is tapping into six new markets on Monday hoping to gain hundred thousand new subscribers and balance out the billions spent on entertainment content each year. Their presence is welcome in most European countries, but in France Netflix is facing government-imposed regulatory hurdles and pressure from established local competitors. (The Associated Press)

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Citizens Budget Commission President Andrew Rein told the Wall Street Journal, "The taxes in New York state are already extremely high, and we are at a time when our competitiveness for businesses and residents is continually threatened."

Former New York Representative and Republican candidate for governor Lee Zeldin tweeted in response to the news.

"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.