*Turns on the news*
“If you are a Pennsylvania resident and have a Netflix account, you will notice some extra dollars out of your bank account starting this month.”
*Record cut noise*
If you are like me, you are probably thinking, “excuse me what did I just read?” And yes, you read that right.
Pennsylvania Gov. Tom Wolf, signed off on a 6 percent tax on all digital downloads and subscription services to fill a $1.3 billion hole in the state’s new $31.5 billion budget.
Not only does this affect our Netflix accounts, it affects Hulu, HBO, Spotify, XM-Sirius Radio, all iTunes amenities like music, e-books, apps and even buying a new ringtone for your phone.
I am a hardworking college student who relies on Netflix, iTunes and Spotify for day-to-day entertainment. I watch Netflix at night to relax, listen to Spotify on my way to class or when I am in the car and use multiple apps on iTunes. Now, I don’t need these luxuries, but I give my hard-earned money to these companies so that I can have the luxury of music, TV and apps. On a monthly basis, I pay Netflix $9.99, because I pay for the ability to use my account on two devices at once, and I pay Spotify, $4.99 a month because I use their student discount. I normally do not pay for any apps on iTunes, but I have in the past. Adding this all up, I pay these companies about $180 - $180 of my earned cash and now I have to add 6 percent to that, which then spikes my yearly payment up to almost $190 per year.
This whole situation really got me thinking about who is using these accounts, and ultimately, who this really effects.
According to Statista.com, in 2015, 65 percent of people between the ages of 16 and 24 used Netflix, and 58 percent of people between the ages of 25 and 34 used Netflix.
This 16-24 age group is the prime target for these companies, and this age group is also the one getting ready for college, in college or just graduating college, which we all know is the real money sucker. As we grow up we have to start paying more bills and worrying about the debt we have accumulated from schooling. Some people, like myself, have to pay car insurance every month and don't have anyone filling up their gas tank for them. I have had to pay for a lot since I turned 16, because with age and power comes responsibility.
The average income for a person between the ages of 16 and 24 is between $3,600 and $30,000 a year. Now, although this is a great gap in wealth, $190 dollars can be a lot to these age groups because of the other pressing payments in our life.
I get it; it’s only about $10 more a year for me, but $10 can really add up over time. Not to mention, I have other taxes that I already have to worry about when it comes to just living a normal life.
The average non-home owning household in Pennsylvania pays over $10,000 according to NerdWallet.com. If you are a homeowner, it is over $13,000. That’s nearly 27 percent of the average income for a Pennsylvania resident. Think about that.
If you are interested in looking up your states taxes, follow this link.
It just absolutely blows my mind that the people who want our college to be free are the same people taxing us college kids for entertainment. Like I said before, this entertainment is something we pay for to get away from the stressors of college - so apparently, now we have to pay extra just to relieve some stress.
As of right now, Chicago is the only city that has a similar tax, but I would not be surprised if it spreads across the country.
Gov. Wolf, I didn’t like you before, and now I like you even less.
