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by pankajkumar229 2694 days ago
Why not just increase sales tax? Or make sales tax sector by sector. Since they are almost a monopoly, it will come out of their own pocket mostly.
3 comments

Sales tax is a tax to the consumer. I fail to see how that would affect Netflix at all.
All taxes are a tax to the consumer. Sales taxes are just less avoidable.
Basic econ theory shows that tax burdens are shared by consumer and producer, regardless of who legally pays.
Is there any difference?

They would have to lower their prices in order to keep the same price to the end user (to keep the same number of users) and therefore get less profit.

Is it because in the states you show the same price and local (state) sales taxes are added on top that makes it a tax to the consumer?

Companies here won’t lower prices, they’ll just hide the fact that there’s a tax until checkout. At least with income tax it directly comes from their books and forces them to either take the hit or be the ‘bad guys’ and raise prices.
The consumer just cares about the final price. They won't distinguish a price increase caused by taxes from one caused by corpo decisions. So assuming Netflix set their current prices optimally, they will be have to keep them and take the hit.
This is not really true. Sales tax is almost always a tack-on. Netflix can very easily advertise the same prices, and then when sales tax gets added on in your credit card statement they can just throw up their hands and say "the government makes us do this!". At least, that's how I'd see it - I'm paying Netflix X, and I'm paying the government Y. In no way does Netflix "eat" this cost.

Could try and pass legislation to force all companies to only ever advertise after-tax prices, but that's a doozy to enforce.

Sales tax is always regressive. The only ones who are paying it is the consumer.

> doozy to enforce

We have no problem enforcing the after-tax rule in VAT jurisdictions.

All tax gets paid by the consumer in the end.
Sales tax is regressive.
Sales tax most places in the US are segmented. My grocery tax is different than my gas tax is different than my alcohol tax is different than my iPhone tax.