States Seeking to Expand Taxes to Services

It is definitely odd to be quoting from the liberal NY Times. The below article reveals that the States are in trouble and looking for other sources of more money. Much of the States' problems are caused by the pending impact of Federal programs like national healthcare. More after the article.
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The New York Times: [T]o generate more revenue, states are considering new taxes on virtually everything: garbage pickup, dating services, bowling night, haircuts, even clowns. . . . 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. . . .

“This is born out of necessity,” said Gov. Edward G. Rendell of Pennsylvania, a Democrat. His proposed budget, being debated in Harrisburg, would tax services including accounting, advertising and data processing. . . .Most states tax at least some services, particularly items like utilities.

Nevertheless, few states have gone where political leaders in Michigan and Pennsylvania are now suggesting: adding scores of services to their states’ sales tax requirement and lowering the tax rate under a widened tax base. But from coast to coast, desperate governments are looking to tap into new revenue streams.
In Nebraska, a lawmaker has introduced a bill to tax armored car services, farm equipment repairs, shoe shines, taxidermy, reflexology and scooter repairs. In Kentucky,Jim Wayne, a state representative, and some fellow Democrats are proposing taxing high-end services: golf greens fees, limousine and hot-air-balloon rides, and private landscaping.

In June, voters in Maine will decide whether to accept a state overhaul of its tax system that would newly tax services like tailor alterations, blimp rides, and entertainment provided by clowns, comedians and jugglers. . .; [Full Article]
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It is time for States to eliminate all forms of taxation except possibly local real estate taxes and to implement  state wide sales taxes on everything except food and and medicine similar to the proposed FairTax.  Items like income taxes, payroll taxes, personal property taxes, and more could be eliminated. significant  saving would accrue to the state by eliminating collections, records and filing reports of taxes like income and payroll taxes.  Prebates could be used to aid low income families.


At the same time, State Governments need to go on a diet and reduce the size of all departments! In addition, States must stand up to the federal government and oppose unfunded mandates. We cannot afford expanded socialism promoted by the present administration.

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Tags: states, income, deficits, sales taxes, budgets, federal mandates
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