In Dire Straits, Individual US States Now Expanding Taxes on Services

By: EW News Desk Team   Date: 31 March 2010

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EW News Desk Team

Always on the look out for the latest news to monitor the state of the world economy.

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31 March 2010

In the scramble to find something, anything, to generate more revenue, American states - which, UN-like the Federal government, can NOT run deficits -

are considering new taxes on virtually everything: garbage pickup, dating services, bowling night, haircuts, even clowns ...

In the scramble to find something, anything, to generate more revenue, American states - which, UN-like the Federal government, can NOT run deficits -

are considering new taxes on virtually everything: garbage pickup, dating services, bowling night, haircuts, even clowns ...

From coast to coast, desperate governments are looking to tap into new revenue streams ...

Pension funds are in the red, federal stimulus help will soon vanish, and revenues from traditional sources like income and property taxes are slumping ever lower,

with few elected officials willing to risk voter wrath by raising them, as this article from the New York Times details ...

A handful of states, including Delaware, Hawaii, New Mexico, South Dakota and Washington, already tax all sorts of services.

Most states tax at least some services, particularly items like utilities.

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 ...

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.


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