New York May Tax Netflix, Hulu Subscriptions to Fund Trains

Like quite a few different public transportation programs across the nation, New York’s Metropolitan Transportation Authority is struggling as ridership nonetheless has but to return to pre-pandemic ranges. In an try and give you extra funding for the MTA, New York governor Kathy Hochul has proposed a $700 million payroll tax improve. However Democrats within the state legislature aren’t proud of that proposal, in order that they’re on the lookout for options, together with probably taxing folks’s Netflix subscriptions.

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According to the Wall Street Journal, taxing streaming service subscriptions akin to Hulu and Netflix is only one thought amongst many who New York lawmakers are contemplating. Others reportedly embrace larger company taxes, a payment on bundle deliveries and a brand new surcharge on Uber and Lyft journeys.

Elevating company taxes to 9.25 % on firms that report greater than $5 million in earnings is predicted to generate $865 million within the first yr, whereas including a $0.25 payment to bundle deliveries would increase an estimated $300 million. Tacking the state’s four-percent gross sales tax onto streaming subscriptions would solely make about $100 million per yr.

Mix all these proposals collectively, although, and New York lawmakers consider they’d have the ability to increase sufficient cash for the MTA to keep away from a subway fare hike from $2.75 to $3.00. The MTA is alleged to not care the place the extra funding comes from. Nonetheless, MTA leaders reportedly favor Hochul’s proposed payroll tax improve as a result of they consider it could present a extra secure supply of funding.

It’s nonetheless not clear which facet is definitely going to win, however state lawmakers have till the top of the month to finalize the funds. So we could know as early as subsequent week whether or not or not HBO Max subscriptions are about to get 4 % costlier.