Those providers do pay their fair share. They have to pay for the bandwidth that their huge server farms are using to provide us with those services. If they pay more in taxes and fees they'll just pass that along to the end users. This bill hurts consumers and helps big government.
...but they are not paying local franchises fees and taxes which, IMO, they should be paying like all other subscription video services. Just this past quarter 400,000 homes severed ties with cable/satellite in favor of alternative subscription video services like Netflix and Hulu. It's only a matter of time before these subscription services/customers start paying their fair share to ride public and private networks. Comcast, Cox and Time-Warner pay these fees and taxes, and Verizon FiOS and AT&T U-Verse pay these taxes...so Netflix, Blockbuster and Hulu customer should also pay them ~or~ level-the-playing field and stop requiring cable/telco customers to pay them. We all know the latter ain't gonna happen, and as more and more household terminate thier cable service the local governments will create other means and methods to fill their coffers.
I'm all for fewer taxes and smaller government...except, it's not fair that Netflix and the like are getting a free ride; tax 'em all equally or tax none equally. Anyway, as more people cut their ties with cable, you can bet your sweet bippy that state and local governments are going to pursue this issue with vigor. Additionally, as much as I hate this idea, it's only a matter of time before various government entities try to tax people on their Internet usage.
The way in which video service is being deliever to customers is changing...and how these services will be taxed in the future is going to change to keep up with the times.
Scenario: I watch episodes of NCIS and Criminal Minds, and rent four PPV movies through Comcast. I wind up paying cable franchase fees and taxes for these video services. Meanwhile, you terminate your Comcast account and signup with a new Streaming (IPTV) startup called Netflunks. You watch the same episodes of NCIS and Criminal Minds and download/view the same four PPV movies...and you pay nothing, nodda, nil, zip in cable franchise or taxes.
Q&A:
Q: Is it fair that I pay taxes while you don't for watching the exact same subscription based video services?
A: No, it is not...and there is no other interpretation.
Q: Do you feel the state/local govenments are going to stand by at watch thier taxes base is eroded?
A: No, cable fees are now going to be called video fees and viola !
Q: What about network abusers Top 5% of customers sucking up more than 50% of the bandwidth.
A: It will be assumed they are encrypting a great deal of video via SSL/VPN. I'm all for these bandwidth abusers being taxed at a much higher rate than 95% of normal users.