Extending sales taxes is a perennial idea of policymakers and commentators. The idea has been around for a long time. Is it catching on? Are states really moving to expand their tax bases to include services? The continuing popularity of the idea is based on the premise that sales tax revenue is shrinking. The national economy is switching from the production of things, to one based on the provision of services, arguably requiring a response on the tax front. Another argument for the extension of the tax is that it would allow a reduction of the overall sales tax rate, or a reduction or elimination of a state’s income tax.MORE >
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