By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Politics Discussion - 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 “tax

That's nothing to be honest. Here in Norway we pay a 25% sales tax on nearly everything, except food, where it is 12%, and transport and cultural stuff(live, like cinema, plays at theaters, concerts, whatever) which has an 8% tax.

People are just whining because they're used to not having to pay taxes on a lot of stuff. Welcome to the real world, Chicago!



Around the Network
pokoko said:
ganoncrotch said:
is that a further 9% than your VAT in the region? or were such things untaxed before?

We don't have VAT.  Each state has sales tax, which they control.  That's why for a very long time, there was little or no tax on internet services or even sales, because states couldn't decide or agree how to go about taxing something that was sent in from another state or country.  Slowly, though, politicians came to understand how much money was escaping their clutches and all the states started taxing internet purchases one after another, as best they could.

Sometimes there are benefits to having old men who don't understand technology making the decisions.  Many of us dodged taxes for quite a lot time.  I remember when I could buy anything off Amazon tax-free, as long as it was shipped from out of state.  That was awesome but I certainly can see how it was bad for local economy.

What makes this bad, though, is that it's a city laying down a substantial tax on top of any other jurisdiction.  That can potentially add up to a lot of money if everyone is trying to dip their fingers into the pie.


Well then welcome to everyone elses hell o/ 9% isn't too bad as long as they don't get greedy for more once they see just how huge 9% of that kinda revenue can be.



Why not check me out on youtube and help me on the way to 2k subs over at www.youtube.com/stormcloudlive

Teeqoz said:
That's nothing to be honest. Here in Norway we pay a 25% sales tax on nearly everything, except food, where it is 12%, and transport and cultural stuff(live, like cinema, plays at theaters, concerts, whatever) which has an 8% tax.

People are just whining because they're used to not having to pay taxes on a lot of stuff. Welcome to the real world, Chicago!


We pay 18% here. I didn't know other countries paid more.  I've always found it a lil funny that us citizens complain about 7-10%.



Americans are frankly spoiled by era of low taxes. We want all sorts of services, but not to pay for them. No wonder we have deficits all the time. We all should have figured online services would be aligned with other products and services. I see nothing wrong with this, although I would figure 6%, but urban areas tend to have higher taxes.



ganoncrotch said:


Well then welcome to everyone elses hell o/ 9% isn't too bad as long as they don't get greedy for more once they see just how huge 9% of that kinda revenue can be.

No, what I'm saying is, this is a city adding 9% because they need some money.  What if the county wants to get into the act?  What if the state wants a piece of the pie?  That's why this is a concern.

It's also why we will probably see some legal action against Chicago with an important precedent on the line.

Also, simply comparing consumer tax rates between countries and regions isn't very effective, not unless you're going to compare a ton of other factors, as well.



Around the Network
Augen said:
Americans are frankly spoiled by era of low taxes. We want all sorts of services, but not to pay for them. No wonder we have deficits all the time. We all should have figured online services would be aligned with other products and services. I see nothing wrong with this, although I would figure 6%, but urban areas tend to have higher taxes.


Yea, but we already pay tax through our internet service providers.  I don't believe a streaming or gaming service should be taxed.  I suppose they want to make up with loss tax from movie theaters in the upcoming years.  I already avoiding going to movies due to the high price and the recent attacks might start detering other people.



Wow, never heard of taxes on stuff like that. Guess we better tighten up our wallets, I suspect more states/cities will follow this.



The Fury said:
In the UK all services are taxed anyway, you know under VAT. Does the US not work this way? The service providers pay this.


That's the primary reason we tend to continue to receive comparatively low prices on most things in the consumer market. The VAT tax is a tax on every step of production, and those costs tend to add up.

Florida is crazy as heck but I certainly prefer the taxes here to the northern states. Don't even have a state income tax.



sethnintendo said:


Yea, but we already pay tax through our internet service providers.  I don't believe a streaming or gaming service should be taxed.  I suppose they want to make up with loss tax from movie theaters in the upcoming years.  I already avoiding going to movies due to the high price and the recent attacks might start detering other people.

Difference of opinion. We need to make cuts or add taxes, something has to give.

 

I started going less because ticket prices became insane. Now wait for $5 Wednesday or $2 second run cinema. $12 is simply absurd to watch a film.



I'm generally opposed to sales taxes of any form, as they, by their very nature, disproportionately affect the poor and lowers the rate of consumption (which consequently lowers the multiplier effect of fiscal stimulus, etc.)

While I am sure the Democrats in Chicago will defend themselves by saying that these things are just entertainment and not a necessity, I still think it's a bad idea.