Streaming service users could be taxed

Madison Rexroat

Cities in Illinois, Pennsylvania, and California are beginning to introduce taxes on streaming services like Netflix and Hulu.

The city council in Pasadena, CA recently proposed a 9.4% tax on streaming videos. Residents would see a monthly charge for streaming services, similar to a utility bill for water or electricity. 

The tax, along with a tax on cell phones, is an attempt to balance losses from people moving from cable TV and landlines to streaming services and cell phones.

The tax in California is not official yet, but legal experts are already fighting back. Their argument is that it’s against the law to tax internet access.

See the video by NowThis below: