Subscribers to streaming services sue the city over cloud tax

Subscribers to streaming services sue the city over cloud tax
Subscribers to streaming services sue the city over cloud tax

Subscribers to streaming services sue the city over cloud tax

You may have noticed a bump in your Netflix or Hulu service bill. A new 9 percent tax Chicago tax on streaming services went into effect at the beginning of this month and now the law is being challenged. A lawsuit filed last week in the Cook County Circuit Court by the nonprofit Liberty Justice Center says the taxes are illegal under the federal Internet Tax Freedom Act, which prohibits state and local governments from taxing Internet access and imposing discriminatory Internet-only taxes. Northwestern University School of Law professor Jim Speta joins us to explain the legal justifications of the suit. He’s an expert on telecommunications and Internet policy.(Flickr/Televisione Streaming)