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Trainlopnik


NEW YORK COULD TAX NETFLIX AND HULU SUBSCRIPTIONS TO FUND TRAINS


DEMOCRATIC LAWMAKERS ARE LOOKING FOR ALTERNATIVES TO GOVERNOR HOCHUL'S PROPOSED
PAYROLL TAX INCREASE.

By
Collin Woodard

Published2 hours ago

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Photo: Spencer Platt / Staff (Getty Images)

Like a number of other public transportation systems around the country, New
York’s Metropolitan Transportation Authority is struggling as ridership still
has yet to return to pre-pandemic levels. In an attempt to come up with more
funding for the MTA, New York governor Kathy Hochul has proposed a $700 million
payroll tax increase. But Democrats in the state legislature aren’t happy with
that proposal, so they’re looking for alternatives, including possibly taxing
people’s Netflix subscriptions.

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According to the Wall Street Journal, taxing streaming service subscriptions
such as Hulu and Netflix is just one idea among many that New York lawmakers are
considering. Others reportedly include higher corporate taxes, a fee on package
deliveries and a new surcharge on Uber and Lyft trips.



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Raising corporate taxes to 9.25 percent on companies that report more than $5
million in income is predicted to generate $865 million in the first year, while
adding a $0.25 fee to package deliveries would raise an estimated $300 million.
Tacking the state’s four-percent sales tax onto streaming subscriptions would
only make about $100 million per year.

Combine all those proposals together, though, and New York lawmakers believe
they’d be able to raise enough money for the MTA to avoid a subway fare hike
from $2.75 to $3.00. The MTA is said to not care where the additional funding
comes from. However, MTA leaders reportedly prefer Hochul’s proposed payroll tax
increase because they believe it would provide a more stable source of funding.

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It’s still not clear which side is actually going to win, but state lawmakers
have until the end of the month to finalize the budget. So we may know as early
as next week whether or not HBO Max subscriptions are about to get four percent
more expensive.

















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