Is A "Netflix Tax" Coming Your Way?

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Users thought they had it bad back in April when Netflix raised its subscription price by two dollars, but they might have something even worse to fear: a Netflix tax.

Cities like Pasadena, California are debating instituting such a scheme thanks to a municipal tax code originally for taxing cable television subscribers, reports the LA Times.

And if you're a Hulu fan, don't think you're in the clear. This tax would apply to many online streaming services, although it's not clear just how much Pasadena residents would pay. Plus, the provision is found in the municipal tax laws of other California cities, like Sacramento.

The reasoning behind this tax, which is already enforced in Pennsylvania and Chicago, is to make up for the money lost as more and more people ditch cable for these online streaming options. The limited commercials and 24/7 show availability make Netflix an alluring option, but how much more expensive can it get before it's all just too much?

Luckily, groups like The Internet Association are working to limit the tax, and may even pursue legal action. Money points out that there are other solutions to the tax, like using a friend's out-of-state or city address when filling out your subscription. The long and short of it is that you better get your binge-watching in now, because who knows how much it might later cost you.

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