Like plenty of different public transportation methods 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 provide you with extra funding for the MTA, New York governor Kathy Hochul has proposed a $700 million payroll tax enhance. 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 individuals’s Netflix subscriptions.
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In accordance with the Wall Avenue Journal, taxing streaming service subscriptions similar to Hulu and Netflix is only one concept amongst many who New York lawmakers are contemplating. Others reportedly embody increased company taxes, a payment on bundle deliveries and a brand new surcharge on Uber and Lyft journeys.
Elevating company taxes to 9.25 % on corporations that report greater than $5 million in revenue 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 be capable to increase sufficient cash for the MTA to keep away from a subway fare hike from $2.75 to $3.00. The MTA is claimed to not care the place the extra funding comes from. Nonetheless, MTA leaders reportedly choose Hochul’s proposed payroll tax enhance as a result of they consider it will 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 might know as early as subsequent week whether or not or not HBO Max subscriptions are about to get 4 % dearer.