California Plans to Tax Text Messages after Chicago Enacted Amusement Tax
In November, we learned of a new Chicago Amusement Tax for Streaming Content on the PS4. This is a 9% tax that applies to rentals and other streaming content on the PlayStations (not the games themselves). Now, this is a dangerous road for many other states. Many streaming companies are working on fighting this tax. As well as California now wanting to tax text messages.
As I lean more toward the Libertarian side on the whole tax debate, I don’t want any new taxes and do not believe there should be an amusement tax. To me it says, “Oh you don’t want to pay for TV Service, because it’s too expensive? Well, let’s just tax your streaming service so you can’t afford that either.” With Illinois already looking like it is going bankrupt, it is no surprise they are trying to find new ways for revenue.
Another important thing to note about this particular tax is that Apple sued them at the end of August, calling the tax unconstitutional and a violation of the 1998 Internet Freedom Act.
Now this leads us to California, where lawmakers are trying to draft a new law to tax text messages, apparently all in the name of providing cheaper or low cost cell phones to Low-Income Residents. This is a horrible idea (look at my response above to my thoughts on taxes). California already has one of the highest tax rates for citizens in the country. So what do they want? More taxes apparently, all in the name of helping those less fortunate.
Despite the lawmakers’ thoughts of how this will help low-income families, I find the plan to be inaccurate. It may help in the short term, however, in the long term it helps feed the welfare state and gives people more reason to stay on governmental assistance. Having worked in the cell phone sales industry, I can not tell you how many times customers have came in wondering why their bills increased. About nine times out ten it is because of taxes, usually millages passed at the local level.
I would also like to point out that, if a tax like this comes into play, you can say goodbye to unlimited text on plans. You will most likely see plans with so many text messages allowed on the plan as you will get taxed on sheer amount that you text. Granted, this is hypothetical right now, as they have not said how the tax would work. However, this looks to be the way they will be going with a tax like this.
California and Chicago lawmakers seem to be out of their minds. Claiming to do this for the better of lower income, while hurting them at the same time. Their goal is not to get you into financial stability, but to keep you dependent on them.
Have any thoughts or concerns on these taxes mentioned in this article? Leave a comment below. Please remain civil with the discussion.
Sources:
- https://www.polygon.com/ps4/2018/11/10/18082646/chicago-cloud-tax-playstation-network-ps4
- https://www.dailywire.com/news/39284/lol-california-drafting-plan-tax-text-messages-joseph-curl?utm_source=facebook&utm_medium=social&utm_content=062316-news&utm_campaign=benshapiro
