NFIB chief fears sales tax talk

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?