How to Prepare Your Toddlers for Preschool

Getting your toddlers ready for preschool is something that is never easy to do. Not only does the toddler potentially have some resistance to the idea of going to preschool, but …

How Do I FInd the Best Preschool for My Child?

Your child’s education is one of your responsibilities. Finding the best preschools is crucial for your child, as quality education is almost an unspoken requirement before high school. Moreover, finding a …

Signs Therapy for Trauma Can Help You

When bad things happen, it’s okay to take time for yourself and process everything that happened. Trauma affects us all equally and can bring countless repercussions to our daily lives. Although …

The city of Chicago hasn’t been bringing in the revenue it needs to bandage up its current financial mess, but many residents and businesses in the Chicago area have begun voicing their discontent with the newest tax policy and stating that city officials have hit a new low.

Starting on September 1 of this year, the city will be starting what it calls a “cloud tax.” This tax would place a 9% fee on paid streaming services that use cloud-based platforms; services like Netflix, Hulu, and Spotify will all be required to pay an extra fee, which means that the prices of these services will certainly go up.

Business Insider and Crain’s Chicago Business report that the “city amusement tax” is actually already in place, although it currently only applies to tickets purchased for sporting events and concerts. The newer cloud tax would be considered an extension of this amusement tax.

Lawmakers also explained that the space used by cloud computing services is considered property — city property — and the businesses that offer cloud-based services are essentially “leasing” that property.

The Chicago Tribune reported that the city expects to bring in about $12 million annually just from the cloud tax alone, which will certainly help the city climb out of its black hole of debt.

But if individual businesses suffer from the tax, the extra revenue that the city brings in won’t be very helpful in terms of financial stability. Recent estimates show that about 84% of companies that switched to the cloud ended up saving money, so it’s clear that the driving force behind cloud-based services is first and foremost cost-effectiveness.

In light of the many protestation, Chicago officials are reportedly considering to place startups in a group exempt from the cloud tax — but as for the other businesses, they’ll be left to fend for themselves.

Leave a Reply

Your email address will not be published. Required fields are marked *