HOW IT WOULD WORK

A proposed 4 percent tax on all digital, phone and TV services would replace a variety of existing sales taxes and franchise fees currently charged on cable TV revenues and phone subscriptions. The communication services tax would cover streaming video and other internet downloads that currently aren’t taxable.

NEW TAXES

■ Streaming services such as Netflix, Amazon Prime Video and Hulu

■ E-books or audiobooks downloaded from Amazon and Audible

■ Music purchased from Spotify and iTunes

■ Video games

■ Digital photos, newspapers and magazines

ELIMINATED TAXES

■ Franchise fees of 5 percent on cable TV revenue

■ Franchise fees of 3 percent on landline phones

■ Sales taxes of at least 7 percent on landline phones, cellphones and broadband equipment