Taxing Streaming Services

As markets increasingly include the sale of online goods and services, it has become common for policy makers to try to incorporate these goods into traditional revenue streams. Applying a sales tax to services like Netlfix, Spotify, and other streaming platforms is a response to the decline in typical media purchases (DVDs, cable, movie tickets, etc.). According to a recent CBS article, this is a fast moving topic and bills are commonly being introduced across the nation to address this or similar topics. In class 6 we talked about sales taxes and the impact they have on people’s willingness to purchase a good. More and more streaming services are being created each year. But I am curious as to whether or not a sales tax on streaming services will have an impact on the number of new platforms created. From informal observations (and my own experience) I know consumers are getting frustrated that they need a new subscription if they want access to certain content that once was more consolidated. With a sales tax, willingness to purchase multiple services is likely to decrease.