Posted by BOE Member George Runner at 12:00 am on Sep 15, 2010 Comments Off on Governor’s new sales tax proposal would pinch ‘Mom and Pop’
Governor Schwarzenegger is floating around an idea to tax
services such as hair cuts, chiropractic adjustments, taxi rides,
concerts, bowling – you name it. If it’s a service, it could become
subjected to taxation.
The governor’s reasoning is that service-oriented business
owners don’t pay their fair share of taxes.
“… We know that the economy now is a service-oriented economy,
but we really don’t tax anyone that is in this new economy,” the
governor said in his Aug. 24 speech to the Goleta Valley Chamber of
Commerce.
The fact is anyone who operates a legitimate business in
California is paying some of the highest taxes in the nation not to
mention obeying a dizzying array of regulations, which has made
California the most hostile state in which to conduct business.
The reality of taxing services is that “mom and pop” business
owners would feel the pinch with the addition of one more onerous
expense, driving some owners to throw in the towel and close shop.
Larger companies would go around the law by outsourcing to service
providers in places like Nevada and Arizona, whose state… Read More