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IPFS News Link • TAXES: State

States Seeking Cash Hope to Expand Taxes to Services

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. Fabrizio Costantini for The New York Times 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. This is especially true, they say, in states like Michigan and Pennsylvania, where some of the most sweeping proposals are being considered this spring.