Saturday, March 27, 2010

States Seek to Tax Services, From Head to Toe

States are considering taxing more things than what already is for the main reason of raising more revenue. Opponents claim they are hurting as it is and more of a tax will only keep customers away. On the other hand, the political leaders state that the they are hurting from lack of revenue and say it is inevitable that taxes will need to change. They're suggesting "adding scores of services to their states' sales tax requirement and lowering the tax rate under a widened tax base."

1 comment:

Mishaal said...

Taxing can have positive as well as negative effects. In this case I agree with the article. Even though states may want to increase their tax revenue as they are helping a lot of companies(due to recession), it will further lower the amount that consumers will spend as a result of increased taxes.