As state governments struggle to raise revenues or cut spending as needed to balance their budgets some states (and even localities) are expanding the reach of state sales taxes to previously untaxed goods and services.
Right here in Philadelphia, the mayor has instituted a penny an ounce tax on soda... with a dual purpose of raising revenues and discouraging the consumption of the sugary drinks. I ask myself if that makes sense... can you really accomplish both?
Of particular importance for professional service firms is the proposed tax on legal, accounting, architectural, engineering, medical and advertising services. This tax proposal would immediately raise the price on these services by 4% to collect the tax on businesses and consumers. For many who pay professionals to maintain compliance with government laws (e.g. tax collection, building codes, court filings, etc), they are now required to pay additional monies to the government to comply with the government requirements... again, I ask myself... does this make sense?
Stay tuned on this as advocacy groups and legislators debate these very interesting issues.