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Huntsman ready to revisit sales tax on services

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Rett Shakespear | 12:20 p.m. Jan. 15, 2009
Bad idea - you're headed in the wrong direction!

I realize to keep state services running you must continue to generate the same or more revenue from taxes in the state. But, taxing services associated with buying or selling a house is absolutely heading in the wrong direction.

Have you really stopped to evaluate the cost to the homeowner?

Taxing services such as Real Estate commission (which is already taxed as income) appraisals, inspections, title work etc. is absolutely wrong. That income is taxes as income, less any expenses, which can in no way be considered income, but rightly lessens the income.

If you allow the State of Utah to begin taxing these areas of service, the cost of buying a home will go up and you will see fewer homes sold. This reduction in sales will more than offset any taxes placed on these services to home buying and selling.

Again, all income from these services is already taxes. You will see less home sales and a drop in Utah�s Real Estate Market, even more than it is now. You are flat out headed in a bad direction, which will weaken, not help our State economy.
Elfie Guymon | 10:04 p.m. Jan. 15, 2009
If someone needed many different services for a single project, like building a house, taxing those services would be an outrageous burden.
Realtor | 3:35 p.m. Jan. 16, 2009
I Ditto the comment made above:

A sales tax on services would seriously hurt an already weak housing market as well as homeownership in general. Under such a proposal, each of the myriad services used to build a house would be taxed, resulting in drastic increases to the price of a home. The services used in buying and selling homes would also be taxed, including real estate commissions, appraisals, home inspections, title work, surveys, etc. With all of the extra costs involved just to complete a transaction, many consumers would be deterred from home buying, moving or using a professional.
Comments continue below
Thayne Bailey | 6:57 p.m. Jan. 16, 2009
It is amazing to me that Govenor Huntsman who claimed to be pro business when he ran for office would delight so much in raising taxes. As Ronald Reagan proved when we lower taxes we stimulate the economy. As a small business owner I just had to let another employee go because I need to cut costs to survive. I sold about as many homes in 2008 as in 2006, but my income dropped over 30%. I also worked significantly harder.
Accelerating the slow down by increasing taxes is ridiculous. What about cutting wages at the level of state employees so they can also do their part to help with the burden everyone else has to suffer through? What about reducing the ridiculous amount of benefits that state employees recieve that we as small business owners never have a chance to participate in? Some of the rest of us work six days a week not four like state employees.What about not replacing certain positions as people retire from state government? Thank goodness for many of our state legislators who have not forgotten the hard working small business owners and the professionals of this state.
Ridiculous | 5:16 p.m. Jan. 17, 2009
Taxing services (and the current myopic methodology that the state govt is using to define what "services" are, is a joke.)

Why go after one of the few things that are actually working in this economy?

Small business and the service(s)they provide are one of the few stable entities in Utah.

Do we really want our economic outlook matching the rest of the country?

Chris | 10:17 p.m. Jan. 18, 2009
As a CPA and realtor, I am surprised that the governor would consider such a sweeping change to the taxation system without input from those most affected. Self-employed individuals not only pay all their own expenses, most have to fund their own health insurance premiums. There are many unreimbursed expenses associated with the "freedom" of working for oneself. Another tax would just mean that we would have to pass these costs on to our clients. I do a lot of pro bono work for people in danger of losing their homes. If I have to make more money just to pay taxes, I won't have the time to help those most in need. How is another tax a benefit to anyone? Frankly, there is so much waste in government, some belt tightening and more efficient methods would more than make up for a tax on service professionals.
JEFF T ---------- REALTOR | 6:58 p.m. Jan. 19, 2009
AREN'T WE IN THE 4TH HIGHEST TAXED STATE IN THE COUNTRY? WHAT POSSIBLE GOOD CAN TAXES DO. THE LOW INCOME PEOPLE ARE HURT THE MOST. WHEN PRICES GO UP DUE TO INCREASES OF ANY KIND BUSINESSES HAVE TO LAY-OFF TO COMPENSATE. THIS AFFECTS THE LOW-INCOME PEOPLE AND MIDDLE CLASS THE MOST. WITH WHAT HAS HAPPENED TO THE ECONOMY LATELY MANY PEOPLE CLOSE TO RETIREMENT ARE GOING TO HAVE TO STAY WORKING FOR LONGER THAN THEY IMAGINED. MY OWN IRA WAS DEPLETED BY 50% AND IT MAY NEVER RETURN TO WHERE IT WAS IN 10-15 YEARS. WE NEED TO ELIMINATE TAXES SUCH AS THE DEATH TAX AND CAPITAL GAINS TAX FIRST AND SCALE DOWN THE SIZE OF THE GOVERNMENT BEFORE WE EVEN CONSIDER ANYTHING LIKE THAT. IF YOU DO THIS THERE WILL BE SUCH AN OUT-MIGRATION FROM UTAH THAT THERE WILL NOT BE ANYONE LEFT TO PAY THE TAXEX. IS THAT WHAT YOU WANT GOVENOR HUNTSMAN?
Glen Hammons | 8:23 p.m. Jan. 19, 2009
Our government should be doing what all the people are having to do, and that is too cut back and make do with much less.
Marta Sanchez | 9:38 a.m. Jan. 21, 2009
I think in this bad economy, government is looking for solutions to solve the agenda in a long run, but it's been proven that higher taxes or taxing a sector that functioned very well before without taxes, is not the best solution. People is going to be very careful of using our services and of course, the house market is the one is going to suffer. The results could be disastrous. I can see people even moving out the state as a result; real state agents,becoming inactive or changing profession. I said NO TO TAXING SERVICES!!!
Bill Lucas | 11:31 a.m. Jan. 21, 2009
This tax would make it more difficult for people to buy a home. This market and home buyers are already in a depressed market that is going to take months if not years to recover.
The effect on people with medical and dental costs would affect on every one in the state expecially those that could affored the added cost the least.
Most of the money recieved from this tax would come from necessary not from luxury service's.
Shirley | 9:44 p.m. Jan. 21, 2009
So I would have to pay tax to have my taxes prepared? My income cannot handle another tax.
How about some spending cuts?
In 2002 I made 72,000.00, in 2008 24,000.00
I have sure had to make some spending cuts.
Jonathan Nielsen | 1:36 p.m. Jan. 22, 2009
I like Jon Huntsman Sr.

I don't like Jonny Jr. Or, as I like to call him and his wife, Ken and Barbie.

He is a socialist. The amazing thing is how narrowly defined socialism is. I would encourage everyone to read Frederic Bastiat, and realize how the state continually seeks to dominate our lives.
Joe in Park City | 4:54 p.m. Jan. 22, 2009
Could not have said it better my self...

"A sales tax on services would seriously hurt an already weak housing market as well as homeownership in general. Under such a proposal, each of the myriad services used to build a house would be taxed, resulting in drastic increases to the price of a home. The services used in buying and selling homes would also be taxed, including real estate commissions, appraisals, home inspections, title work, surveys, etc. With all of the extra costs involved just to complete a transaction, many consumers would be deterred from home buying, moving or using a professional."

Would the last person to leave the state of Utah please turn off the lights!


kmac | 4:32 p.m. Jan. 26, 2009
Who would be paying for the taxes on services, certainly not the business. As an "end consumer" I am not happy with this idea. We pay so many taxes as it is, one more will just send the economy deeper into a recession.

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Governor Huntsman accepts the 2009 Economic Report from Utah's Chief economist Juliette Tennert at the Hilton hotel in Salt Lake City.

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