http://www.nytimes.com/2010/03/28/us/28taxes.html?hp
In the scramble to find something, anything, to generate more revenue, states are considering new taxes on virtually everything: garbage pickup, dating services, bowling night, haircuts, even clowns.
A Michigan proposal would lower the sales tax but make it broader, levying it on over 100 additional types of services like haircuts, including those at Chaltraw’s Barber Shop in Standish, where Al Marden awaited his turn.
“It’s hard enough doing what we do,” grumbled John Luke, a plumber in the Philadelphia suburbs. His services would, for the first time, come with an added tax if the governor has his way.
Opponents of imposing taxes on services like funerals, legal advice, helicopter rides and dry cleaning argue that this push comes as businesses are barely clinging to life and can ill afford to see customers further put off by new taxes.
Showing posts with label service tax. Show all posts
Showing posts with label service tax. Show all posts
Sunday, March 28, 2010
Monday, February 8, 2010
States Try to Tax More Services as Coffers Deflate
http://online.wsj.com/article/SB10001424052748704829704575049861057266800.html?mod=WSJ_hpp_sections_news
One way or another they are going to take what they need from you to survive.
Will plumbers, lawyers and hot-air balloon operators be forced to pitch in to solve state and local government revenue shortfalls?
Sales taxes today mainly, though not exclusively, hit sales of tangible goods like cars and couches. Faced with the worst budget crisis in a generation, many states are looking to expand sales taxes to services, such as lawn care or accountants' advice. The goal, legislators say, is to broaden the tax base to cover a broader swath of the economy as traditional sources of tax revenue decline.
Although in early stages, service taxes are being considered by legislators around the country. In Kentucky, representatives have introduced a measure to extend sales taxes to some high-end services like limousines and balloon rides. In North Carolina, the legislature last year considered, but didn't pass, a proposal to tax services such as car repairs and lawn care.
In Maine, the legislature last year passed a law that would lower income taxes for most residents but extend sales taxes to services such as car repairs and dry cleaning. It faces a voter referendum in June.
Many states already tax some services
One way or another they are going to take what they need from you to survive.
Will plumbers, lawyers and hot-air balloon operators be forced to pitch in to solve state and local government revenue shortfalls?
Sales taxes today mainly, though not exclusively, hit sales of tangible goods like cars and couches. Faced with the worst budget crisis in a generation, many states are looking to expand sales taxes to services, such as lawn care or accountants' advice. The goal, legislators say, is to broaden the tax base to cover a broader swath of the economy as traditional sources of tax revenue decline.
Although in early stages, service taxes are being considered by legislators around the country. In Kentucky, representatives have introduced a measure to extend sales taxes to some high-end services like limousines and balloon rides. In North Carolina, the legislature last year considered, but didn't pass, a proposal to tax services such as car repairs and lawn care.
In Maine, the legislature last year passed a law that would lower income taxes for most residents but extend sales taxes to services such as car repairs and dry cleaning. It faces a voter referendum in June.
Many states already tax some services
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