5 ms·

I wish Netflix would man up when these kinds of extortions show up. Just imagine telling "Fine, we're out. Enjoy telling your city why they can no longer have

by urda 11y ago

I wish Netflix would man up when these kinds of extortions show up. Just imagine telling "Fine, we're out. Enjoy telling your city why they can no longer have Netflix".

outside1234 11y ago
Its probably better for them to just put the tax in 45pt font on the order page. Its the people in these jurisdictions that are electing these folks.
myNXTact 11y ago
That was my first thought. But on second thought, I wouldn't be surprised if big companies, like Netflix, don't have a problem with taxes. The billion dollar tech companies have the wherewithal to implement different tax regiments to each of their customers. It's the startups that this move will hurt and thus add entry barriers protecting the market share of the big boys.
- icanhackit 11y ago
  It's the startups that this move will hurt I wonder - what if you took the code for Popcorn Time, made your own front-end and used the majority of your funds to sign deals with production companies? If it's P2P you could be based in Iceland for all it matters. You could avoid goods and services taxes everywhere because P2P is ephemeral and you'd avoid lawsuits from the rights holders for being a legitimate front-end for their content. Your attack surface would mainly be P2P blocking in countries that don't like the cut of your jib or throttling from ISPs.
  - pjc50 11y ago
    sign deals with production companies This is not going to happen.
rayiner 11y ago
How is this "extortion"? You pay sales tax when you buy a DVD or go to a movie, why should Netflix be tax free? I mean you can have a philosophical opposition to consumption taxes, but that's different.
- urda 11y ago
  > city’s amusement tax How in the world is that not extortion? This is literally a cash grab by Chicago.
  - tedunangst 11y ago
    Help us understand the difference. How is sales tax on DVDs not literally a cash grab by Chicago?
    - leeleelee 11y ago
      Local businesses operating physically inside the city consume resources to some extent. They use the roads, sidewalks, buildings, cause people to walk/drive to certain places, etc. They pay for rent and other expenses, but also use/benefit from city resources that they aren't directly charged for. But netflix obviously doesn't have any physical presence in chicago.
      - pas 11y ago
        It doesn't matter. Chicago residents now subsidize Chicago services some other way. (Via this Netflix tax.) End of (that) story. Is it good that Chicago is subsidizing services by taxing some other activity, mainly those that are not really utilizing those services, and taxing residents that might not even use or benefit (directly) from those services? Well, maybe not. But since it only provides a very small selection pressure it's unlikely that residents will move out, or speak out.
      - rayiner 11y ago
        Consumption taxes are usually passed on to the consumers even if they are collected by the seller. Making the seller responsible just makes tax evasion harder.
deleted 11y ago
[deleted]
tsotha 11y ago
But Netflix isn't paying the tax. The end user is paying the tax. Why would Netflix bother doing anything at all?
Shivetya 11y ago
well its not like Netflix will be paying the tax, like all other taxes it is passed onto the consumer. Now as long as its explicit on the bill that the tax is because you live in Chicago I am just fine with it. why? because the people who live in Chicago need to vote better. Honestly I am surprised it took this long for services delivered by out of state companies to get taxed after the fiasco with taxing purchases from Amazon and the like. The same train of thought applies, its "unfair" to local companies who cannot compete with the pricing models internet companies have. While to me there is a lot of bunk in that statement it does quite well in selling the taxes and fees. Anytime money exchanges hands there are government agencies who can charge a fee, tax, or whatnot. What the majority fail to understand is the sheer amount of taxes they pay, both direct and embedded. Each tax carries a cost outside of its direct application in the form of the overhead at the sellers place and the taxing authority.

by urda 11y ago

I wish Netflix would man up when these kinds of extortions show up. Just imagine telling "Fine, we're out. Enjoy telling your city why they can no longer have Netflix".

outside1234 11y ago

Its probably better for them to just put the tax in 45pt font on the order page. Its the people in these jurisdictions that are electing these folks.

myNXTact 11y ago

That was my first thought. But on second thought, I wouldn't be surprised if big companies, like Netflix, don't have a problem with taxes. The billion dollar tech companies have the wherewithal to implement different tax regiments to each of their customers. It's the startups that this move will hurt and thus add entry barriers protecting the market share of the big boys.

icanhackit 11y ago
It's the startups that this move will hurt I wonder - what if you took the code for Popcorn Time, made your own front-end and used the majority of your funds to sign deals with production companies? If it's P2P you could be based in Iceland for all it matters. You could avoid goods and services taxes everywhere because P2P is ephemeral and you'd avoid lawsuits from the rights holders for being a legitimate front-end for their content. Your attack surface would mainly be P2P blocking in countries that don't like the cut of your jib or throttling from ISPs.
- pjc50 11y ago
  sign deals with production companies This is not going to happen.

rayiner 11y ago

How is this "extortion"? You pay sales tax when you buy a DVD or go to a movie, why should Netflix be tax free? I mean you can have a philosophical opposition to consumption taxes, but that's different.

urda 11y ago
> city’s amusement tax How in the world is that not extortion? This is literally a cash grab by Chicago.
- tedunangst 11y ago
  Help us understand the difference. How is sales tax on DVDs not literally a cash grab by Chicago?
  - leeleelee 11y ago
    Local businesses operating physically inside the city consume resources to some extent. They use the roads, sidewalks, buildings, cause people to walk/drive to certain places, etc. They pay for rent and other expenses, but also use/benefit from city resources that they aren't directly charged for. But netflix obviously doesn't have any physical presence in chicago.
    - pas 11y ago
      It doesn't matter. Chicago residents now subsidize Chicago services some other way. (Via this Netflix tax.) End of (that) story. Is it good that Chicago is subsidizing services by taxing some other activity, mainly those that are not really utilizing those services, and taxing residents that might not even use or benefit (directly) from those services? Well, maybe not. But since it only provides a very small selection pressure it's unlikely that residents will move out, or speak out.
    - rayiner 11y ago
      Consumption taxes are usually passed on to the consumers even if they are collected by the seller. Making the seller responsible just makes tax evasion harder.

deleted 11y ago

[deleted]

tsotha 11y ago

But Netflix isn't paying the tax. The end user is paying the tax. Why would Netflix bother doing anything at all?

Shivetya 11y ago

well its not like Netflix will be paying the tax, like all other taxes it is passed onto the consumer. Now as long as its explicit on the bill that the tax is because you live in Chicago I am just fine with it. why? because the people who live in Chicago need to vote better. Honestly I am surprised it took this long for services delivered by out of state companies to get taxed after the fiasco with taxing purchases from Amazon and the like. The same train of thought applies, its "unfair" to local companies who cannot compete with the pricing models internet companies have. While to me there is a lot of bunk in that statement it does quite well in selling the taxes and fees. Anytime money exchanges hands there are government agencies who can charge a fee, tax, or whatnot. What the majority fail to understand is the sheer amount of taxes they pay, both direct and embedded. Each tax carries a cost outside of its direct application in the form of the overhead at the sellers place and the taxing authority.