Terms:
Federation of Tax Administration: an organization that provides service to state tax authorities and administrators. Their main goal is to improve the quality of state tax.
California Chamber of Commerce: An organization that represents California's private-sector business employers in politics and advocates their needs.
Mulitstate Tax Commission: an intergovernmental state tax agency that work for states and taxpayers to administer tax laws that effect multiple states and multiple nations.
Many of you know that 81% of our state and local governments produce revenue through taxes. These taxes include sales, property, income, and more. However, the high unemployment, cheap property tax, and thriftiness of the American people during a bad economy is making it harder to keep this statistic current. Well, what do you do? This is the question many legislators are trying to answer. This question has been argued repeatedly by tax experts. Some proposed solutions include taxes that the people on main street may not favor.
The total amount of money the American people use on the consumption of services is about $6.1 trillion a year. Therefore, many state legislators are thinking of taxing services. In Kentucky, a measure outlined a method of taxing "high-end services" such as limousines and balloon rides. In Maine, legislators passed a law that lowered income taxes, yet extended sales taxes to services. These services included dry cleaners and car repairs. In Hawaii and New Mexico taxes on services include more that 150 services. Numerous states already tax services that include hotel rooms and restaurant tabs. The services are taxed indirectly through employee wages which enable them to provide the service. According to the Federation of Tax Administrators, some states tax professional services such as doctors and lawyers. What about the state of California?
Well in California sales tax does not reach services. The California Chamber of Commerce opposed the idea because of many reasons. One of the main reasons was because it would hurt small business owners who try to sell their services. If the state decides to include tax on their services this will cause a major hike in prices and therefore maybe a lack of business. Most legislators have found it easier to raise existing taxes instead of creating new ones that stun the American people. However, many legislators believe taxation on services would cause anger and frustrations.
Link:
"States Try to Tax More Services as Coffers Deflate"
by: Conor Dougherty
http://online.wsj.com/article/SB10001424052748704829704575049861057266800.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
Federation of Tax Administration: an organization that provides service to state tax authorities and administrators. Their main goal is to improve the quality of state tax.
California Chamber of Commerce: An organization that represents California's private-sector business employers in politics and advocates their needs.
Mulitstate Tax Commission: an intergovernmental state tax agency that work for states and taxpayers to administer tax laws that effect multiple states and multiple nations.
Many of you know that 81% of our state and local governments produce revenue through taxes. These taxes include sales, property, income, and more. However, the high unemployment, cheap property tax, and thriftiness of the American people during a bad economy is making it harder to keep this statistic current. Well, what do you do? This is the question many legislators are trying to answer. This question has been argued repeatedly by tax experts. Some proposed solutions include taxes that the people on main street may not favor.
The total amount of money the American people use on the consumption of services is about $6.1 trillion a year. Therefore, many state legislators are thinking of taxing services. In Kentucky, a measure outlined a method of taxing "high-end services" such as limousines and balloon rides. In Maine, legislators passed a law that lowered income taxes, yet extended sales taxes to services. These services included dry cleaners and car repairs. In Hawaii and New Mexico taxes on services include more that 150 services. Numerous states already tax services that include hotel rooms and restaurant tabs. The services are taxed indirectly through employee wages which enable them to provide the service. According to the Federation of Tax Administrators, some states tax professional services such as doctors and lawyers. What about the state of California?
Well in California sales tax does not reach services. The California Chamber of Commerce opposed the idea because of many reasons. One of the main reasons was because it would hurt small business owners who try to sell their services. If the state decides to include tax on their services this will cause a major hike in prices and therefore maybe a lack of business. Most legislators have found it easier to raise existing taxes instead of creating new ones that stun the American people. However, many legislators believe taxation on services would cause anger and frustrations.
Link:
"States Try to Tax More Services as Coffers Deflate"
by: Conor Dougherty
http://online.wsj.com/article/SB10001424052748704829704575049861057266800.html?mod=WSJ_hpp_LEFTWhatsNewsCollection
Mulitstate?
ReplyDelete