Week in Insights: Maine’s Streaming Tax Bill Sets a Good Example

Curated by Daniel Xu

Ongoing legislative developments in Maine may suggest a path forward for other states feeling the pinch of diminished revenue.

The Maine legislature is considering a tax on video streaming services for using the public utility infrastructure—in other words, taxing Netflix Inc. for sending content over the cable and phone lines. If enacted, the bill would let individual municipalities choose whether to implement the tax.

There is merit to the argument for taxing content providers whose use of public infrastructure is a foundation of their business. A tax-based model offers a more nuanced and equitable solution ...