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Arnold and the Democrats have formed a new political party, the "Tax Anything and Everything Party".
"A perennial favorite idea that floats around the halls of the Capitol is a scheme to create a sales tax on services such as haircuts, veterinary visits, taxi rides, concerts, bowling you name it. If its a service, it could become subjected to taxation.
This plan is great for U-Hauls one-way ticket out of California plan, but bad for everyone else.
Budget negotiations should never go near this bad plan. Here are seven reasons why:
Creating a sales tax on services ignores the fact that many services can be performed out of state. For example, a software company in California can do the same programming in neighboring states and without the extra bookkeeping burden. The same holds true for graphic artists, web designers, architectural drafters, and so on. Consumers would seek these services from out-of-state vendors, which kill jobs in our state, and people who provide these services would consider moving out of state, which is another form of job killing.
For brick and mortar operations that cant move out of state, like barbershops, nail salons and taxi drivers, the increased cost will affect the bottom line of their already thin margins. In the competitive environment that is commerce and business, smaller companies may not want to pass the extra expense of service tax onto their consumers."
Create these new taxes and you will see people and jobs fleeing the State as if trying to get away from a flood.
More...
"A perennial favorite idea that floats around the halls of the Capitol is a scheme to create a sales tax on services such as haircuts, veterinary visits, taxi rides, concerts, bowling you name it. If its a service, it could become subjected to taxation.
This plan is great for U-Hauls one-way ticket out of California plan, but bad for everyone else.
Budget negotiations should never go near this bad plan. Here are seven reasons why:
Creating a sales tax on services ignores the fact that many services can be performed out of state. For example, a software company in California can do the same programming in neighboring states and without the extra bookkeeping burden. The same holds true for graphic artists, web designers, architectural drafters, and so on. Consumers would seek these services from out-of-state vendors, which kill jobs in our state, and people who provide these services would consider moving out of state, which is another form of job killing.
For brick and mortar operations that cant move out of state, like barbershops, nail salons and taxi drivers, the increased cost will affect the bottom line of their already thin margins. In the competitive environment that is commerce and business, smaller companies may not want to pass the extra expense of service tax onto their consumers."
Create these new taxes and you will see people and jobs fleeing the State as if trying to get away from a flood.
More...