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Netflix Prices Go Up And
Now The “Netflix Tax”
As Netflix prices go up subscriber beware the “Netflix tax” is coming. One states legislature has recently extended its 6 percent sales tax to include subscription services like Netflix. This state is Pennsylvania. Pennsylvania will join a select group that have added this local tax to subscription services. There is already a 9 percent tax in Chicago called the “cloud tax”. Minnesota is another example with a tax on digital goods. Some states have tried to adding a telecommunications tax as a way of adding tax without calling it sales tax.
Although it’s called the Netflix tax, the fee will also apply to music downloads, e-books and apps. Exempt from the tax will be any digital versions of newspapers, magazines and the Bible.
The cost of Netflix compared to cable is a no brainer. With cost ranging from 9-12 dollars a month and cable almost quadrupling that it just makes sense. Let’s do the math, even at the highest amount of $12 a month with “Netflix tax” of 72 cents brings the total month amount to $12.72. Still seems like this isn’t that big of a deal.
Bottom line I think we can all just calm down and keep streaming, but if you need more reasons to keep Netflix check out 5 reasons to cut cable and join Netflix.