Sunday, March 28, 2010

Send in the Clown Tax

Some might say this is politicians taxing themselves. With their thirst for your money unquenchable, some states are now willing to tax, well, anything. But this just isn't funny.
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.

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.

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

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.

Though some say the proposed service taxes face opposition too fierce to succeed in many places, particularly in an election year, even some of the most ardent opponents predict that some of the taxes will scrape through. The current budget misery will probably “push the idea over the edge” in at least some states, said Robert D. Fowler, president and chief executive of the Small Business Association of Michigan.

“And they won’t be any better off for it, either,” said Mr. Fowler, who added that his members detested the notion. “It’s the wrong time, in the heat of just trying anything to find money, to have this discussion.
Maybe these clowns ought to just cut spending, particularly on the bloated staffs of government employees and political operatives.

Instapundit links. Thanks!

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