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April 19, 2021 10:05 am  #1


Is A "Netflix Tax" Coming In Monday's Budget?

Will there be the so-called Netflix Tax that's been rumoured for years in Monday's federal budget? Multiple sources seem to indicate the government, desperate for more revenue, may be leaning that way. According to Reuters:

"The budget will include a sales tax for online platforms and e-commerce warehouses starting from July, and a digital services tax on big Web companies starting from Jan. 1, 2022, both measures originally promised last year.

Online platforms include foreign-based vendors with no physical presence in Canada that sell products such as mobile apps and online video gaming. E-commerce warehousing is the storage of physical goods before they are sold online."

Is this true and what will it mean to whatever streaming services you subscribe to? We'll all find out the hard way when the first federal budget in two years comes down at 4 PM Monday.

 

April 19, 2021 1:19 pm  #2


Re: Is A "Netflix Tax" Coming In Monday's Budget?

If I have to pay 13% more for my Spotify subscription, not much I can do about it. I certainly get my money's worth from it.

 

April 19, 2021 1:30 pm  #3


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Won't effect me in any way.


I started out with nothing and I still have most of it.
 

April 19, 2021 2:00 pm  #4


Re: Is A "Netflix Tax" Coming In Monday's Budget?

I've slowly layered streaming service on top of streaming service over the past year. Adding HST to them might push me to cut one or two.

 

April 19, 2021 2:52 pm  #5


Re: Is A "Netflix Tax" Coming In Monday's Budget?

CBC Gem gets paid out of Google, do the short surveys and it covers it.  Prime includes video so I don't count that as a cost as it's included with the 2 day delivery.  My Netflix is almost $20 a month for the 4 screen/HD 4K stuff, Tubi is free, Pluto is free tho need my Nordvpn to get the US channels.  $7.99 for youtube music which sucks over Google play music so may drop that

 

April 19, 2021 2:54 pm  #6


Re: Is A "Netflix Tax" Coming In Monday's Budget?

RadioAaron wrote:

I've slowly layered streaming service on top of streaming service over the past year. Adding HST to them might push me to cut one or two.

Is it possible that one might buy out the other, leading to less streaming choices?


RadioWiz & RadioQuiz are NOT the same person. 
RadioWiz & THE Wiz are NOT the same person.

 
 

April 19, 2021 4:58 pm  #7


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Radiowiz wrote:

RadioAaron wrote:

I've slowly layered streaming service on top of streaming service over the past year. Adding HST to them might push me to cut one or two.

Is it possible that one might buy out the other, leading to less streaming choices?

Never say never to potential mergers.

Some are very unlikely (Amazon & Disney+ because of the size of parent companies, for example), others are possible.

 

April 19, 2021 5:50 pm  #8


Re: Is A "Netflix Tax" Coming In Monday's Budget?

To be honest, I can't quite tell if the so-called Netflix tax is in or not. The wording is vague. There IS a tax for "digital services" but whether that includes streaming I'm unable to quite tell. At this point, I don't think so.

Here's how they explain it in the National Post in an article titled "Tax on Big Tech in federal budget will bring in $3.4 billion." Maybe it will be clearer to you than to me.

"The federal budget released Monday confirmed the government will go ahead with the tax, which is aimed at large companies that operate online marketplaces, social media platforms and earn revenue from online advertising. That category would include services like Amazon, Google and Facebook, as well as Uber and Airbnb, if they also meet minimum revenue criteria."

That doesn't initially sound like the streamers, but does that not describe them in some way? At first glance, it doesn't, but I'm sure of one thing - if the Netflix tax isn't there yet, it will be after the next election. And does this mean an extra tax on anything you buy on Amazon? 

On another matter, I was very disappointed with the radio coverage of the budget. I was out walking the dog when it started, so could not get to a TV. The rules are clear - when the Finance Minister stands up in the House and begins her speech, all the info can come gushing out in a torrent of information. But the frat boys on CFRB were talking about something else I can't recall, while Peter Shurman, subbing for Oakley on 640, was chatting for reasons totally beyond me with disgraced former Tory MPP Randy Hillier. 

Neither of them actually got to the budget highlights for several minutes. My guess is that the experts who were in the lockup were all taken by the TV side of both companies (CTV & Global) and there was no one to fill them in. Both shows eventually got to the highlights, and I can't be sure, but it definitely sounded like they were waiting for wire copy to fill in the blanks. 

Meanwhile over on CBC Radio 1, they did have the highlights right away, but then went to a panel of "experts" who - surprise! - thought the free spending document was the greatest thing since sliced bread. It would have been nice if one of them was a dissenting voice to get both sides, but this IS the CBC and their guests tend to skew Liberal. 

     Thread Starter
 

April 19, 2021 6:04 pm  #9


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Meanwhile, in another jaw dropping decision, on the day the federal government unveiled the longest delayed and biggest deficit budget in Canadian history that will affect you - and your kids' kids - financial futures, CTV lead with the hunt for vaccines, City started with a demand for Doug Ford to resign and Global began its 6 pm show with the Rogers phone outage. 

Wow. I've never seen a time when a federal budget wasn't the lead story on all three stations. Not one of them bothered to mention it even five minutes in. Yes, it tends to be a dry story with lots of stats. But it's really, really important. Incredible. 

     Thread Starter
 

April 19, 2021 6:38 pm  #10


Re: Is A "Netflix Tax" Coming In Monday's Budget?

The switch from "what's important" to "what people are already talking about" summarized.

 

 

April 19, 2021 9:26 pm  #11


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Can't wait to hear Mike Stafford react to the price of cigarettes going up $4 per carton effective almost immediately. 

He can't be a happy man!

     Thread Starter
 

April 19, 2021 9:31 pm  #12


Re: Is A "Netflix Tax" Coming In Monday's Budget?

RadioAaron wrote:

The switch from "what's important" to "what people are already talking about" summarized.

 

Exactly. But I think that's fair... no? People should care about the vaccine supply issues and cell disruption more than the budget, because it affects their day today. But thats my two cents. Many (if not most) people could care less about the deficit right about now. 

 

April 19, 2021 11:36 pm  #13


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Broadcast Dialogue has a good overview of what the digital tax is and who it applies to - as well as yet more money from the Liberals for - what else? - the CBC.

Federal budget includes roadmap for digital tax, emergency CBC funding

     Thread Starter
 

April 19, 2021 11:38 pm  #14


Re: Is A "Netflix Tax" Coming In Monday's Budget?

Why not alternate streaming services every few months?  Seems simple enough.