NFIB chief fears sales tax talk

September 3, 2010
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Small business is being treated better and better by the Indiana General Assembly, says the state director of the National Federation of Independent Business, but the coming session could be tough.

Barbara Quandt noted in the group’s report from the 2010 session this week that 28 of the 100 members in the House voted with the NFIB all of the time on issues of greatest importance to the organization. That was better than last year, and she thinks the rate might climb in the coming session because legislators appear to want to help create jobs.

“We’re very fortunate in Indiana to have a legislature that by and large listens to small business,” Quandt said.

Still, she’s concerned about Statehouse chatter of extending the 7-percent state sales tax to services. That would clobber her members from two directions: Small firms would see their sales get hurt, and, because they buy lots of outsourced services, they’d also pay the tax.

“We’re going to have to be watching really, really closely,” she said.

The state is certainly desperate for revenue. What are your feelings about taxing services?
 

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  • stupid idea
    INDIANA FISCAL POLICY'S JOHN KETZENBERGER SHOULD BE ASHAMED FOR PUSHING THIS.
  • Equity and Fairness
    Just as an income tax is more appropriate than property taxes in today's economy, so a sales tax that treats the purchases of services equally with the purchases of goods is also more appropriate to the structure of our economy, and better reflects the elements of society that put a demand on the provision of government services.
  • BAD for IN
    On paper, it may look as if Indiana could raise more revenue if it starts taxing professional services. In reality, a service tax will put Indiana businesses at a huge disadvantage. Taxing professional services is a bad idea. Those in the service industry compete for jobs regularly with out-of-state companies. If Indiana companies are taxed for their work, they�ll be at a competitive disadvantage. A service tax will hurt local firms and drive away large firms with branch offices here, costing Hoosiers jobs. None of the surrounding states (Kentucky, Ohio, Michigan or Illinois) impose a tax on professional services, it will be tempting to go there for lower-cost services.

    In fact, only a handful of states across the country have such a tax. Florida, Connecticut and Michigan were forced to repeal the service tax, because the tax is difficult to manage, and did not bring the states the additional revenue windfall they had envisioned.

    If Indiana is serious about economic development ââ?¬â?? about promoting the benefits of working in Indiana and supporting Indiana companies ââ?¬â?? then state lawmakers quickly will dismiss any thoughts of taxing the service industry.
  • New Frontier
    If the government is so hard up for money, why don't they tap a new cash crop (marajuana) or legalize prostitution which isn't much different than what they do with lobbyists?

    Both would provide plenty of cash and create new jobs;)
  • Hey Mike
    Thanks for paying attention to what they Indiana Fiscal Policy Institute has to say, but please read the report before reaching a conclusion. The report, issued last October and available at www.indianafiscal.org, analyzes the state's sales tax, puts it in perspective of the rest of the country and estimates the revenue potential if the tax was extended to more services. We even include a scenario of what the state could do with that additional revenue. Nowhere in the report, however, does the IFPI advocate for its extension. That decision is best left to the General Assembly and those who do advocate for or against an extension.

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  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

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