California Sales Tax Should Not Be Expanded to Include That For Services

The State of California and legislature (controlled for many years by Democrats) and Board of Equalization is considering sales tax expansion to include that on services, such as fees for real estate agents, physicians, dentists, lawyers, accountants, architects, gardeners, landscapers, babysitters, and so many others.

There is an obscure rule of the Board of Equalization, the state's tax collecting agency, that would allow such consideration. This elected board is itself governed by 3 Democrats and 2 Republicans.

We recognize that the state of California is in financial trouble with estimated budget deficit of $17 billion.

The state should focus on reducing its mammoth payroll and pension obligations, stop giving away money so much money through entitlement programs, increased welfare benefit payments, and that involving medical care for illegal immigrants.

Democrats don’t want to cut services. Republicans don’t want to raise taxes, and we agree.

The California sales tax currently only applies to goods that you can touch, like motor vehicles, household items, golf clubs, clothing, office supplies, computers, telephones, and digital recorders.

Our sales tax does not now apply to services, like that of a real estate agent, physician, lawyer, dentist, accountant, architect, and labor for an auto mechanic.

The State board of Equalization without permission from the legislature and governor could change this system to include sales taxes on services.

What a mistake that would be and get us tied up in court of years on constitutional issues, which would require further use of the state's precious money.

The possibility of expansion of sales tax to include services should be opposed and rejected by every California business person.

The board’s chairwoman, Judy Chu, has already during April 2008 proposed a 5 percent sales tax on services and argued that the board has such authority to make this determination on its own.

Our California State Board of Equalization and the Democrat controlled legislature should not be allowed to expand sales tax in California to include that for services.

Posted by Harrison K. Long, Explore Properties Group, June 9, 2008
Source: Orange County Register