It's quite telling that not even our far leftist, "I never met a tax I
didn't want to triple!" posters are against this idea. This is a
horrible idea. Just consider: this would tax legal services. So,
every divorce, every person accused of a crime, every person injured, every time
you want a contract drawn up... all suddenly more expensive. Who pays?
Everyone! Small, solo attorneys aren't equipped to pay sales taxes, just
like one to two man construction companies, or hair salons, and so on. The big
companies don't care, because this punishes the small service providers.
And what about out of state services? Do I as the attorney or
architect or whomever have to pay sales taxes on services rendered? Doctors who
save a life on the side of the road? Etc Etc Etc. This is an awful
I can't believe what is going on in this state. A legislature run by real
estate and development professionals voting on other people's private
property use (the right to petition is trying to be significantly altered) and
seriously degrade our local business. The only voice of reality I saw on this
was from a legal professional. Everyone else was green light go. The reality of
this is that it hits everyone. I don't raise my red flag often, but this
is one of them. This will make small business owners close shop and those that
care to deal with it will simply push the bill on consumers, slowing the economy
that is already showing signs of slow down. I am just grateful that my
representative had her head in the clouds and all she cares about is daylight
savings time... Can't we go back to debating that instead?
Can you imagine what this bill could do to the price of a home or office
building if every subcontractor gets taxed for their services?
Taxing services is a bad idea. The legislature and governor seem to think that
we should all accept this idea as something great. They need to get over their
"group think" on this very stupid idea.Kill this bill, and
don't resurrect it as a zombie or otherwise. Just like a zombie, it would
eat our economy alive and be detrimental to everyone.
It would help the discussion for all to note that the nation's wealth comes
from two basic sources: 1- natural resources and 2- human capital, both in a
variety of forms. Money represents wealth circulates in and through the economy
and does more and goes further when it circulates completely and quickly. Money
under the mattress may be good for the individual, but counterproductive to
active circulation of wealth.We accept that governments have to
channel off (tax) a percent of the circulating money/wealth in order to
function. The revenue is not exactly wasted as it goes mainly for goods and
services, but it is altered in its path of circulation. As a regulator,
government adds little value to the economy, but it can affect +/- the general
welfare of the country.It is long held that a good tax program draws
from a broad number of money circulation paths. So we have sales, income,
property, excise, transportation and like taxes. Taxing labor/services directly
hits value generation at the wellhead and is so personal and universal and
anti-progressive as to be widely resisted. Taxing labor is brutally fair, but
onerous. We all would pay in tax and increased cost of goods.
Time for all of us to seriously engage our state representatives and senators
about this idea, concept of "expanding the tax base". I think many of
them have not read much if anything of the various editions of HB441. Yet they
were willing to vote on it.If we are wise, we, the public will
pressure the legislature to not bring it up in a special session but force the
proponents to run on this bill in the next election as a way to measure public
support.I suggest questioning every legislator on his or her opinion
and how they plan to vote and publicize their responses. The media needs to
question the governor and legislative leaders constantly to determine what they
know and why they are in favor of this apparently very unpopular bill.
We need to cut the size of State gov't or tax cuts mean nothing.
Is "tax reform" the same as not being able to raise taxes...again. Every
legislative session seems to increase taxes, by our "fiscally responsible
Republicans" that love to raise taxes. So much that we have a $1.3 BILLION
over taxation surplus. And those good Republicans are still trying to increase
more taxes.Republicans love taxes, unless it affects the wealthy.
As is, it sounds like s tax increase not a decrease. A 0.02 percentage point
decrease in the income tax rate will be swamped by the sales tax on all the
services we use each year. Can you imagine paying a sales tax on a $20,000
medical operation? Will insurance companies pay the sales tax on medical
procedures and prescriptions or will you and I have to pay out of our own
pocket? Lots of questions need to be answered.
It was an awful bill with all kinds of unintended consequences. It would
essentially shift a huge portion of the tax burden onto a select few individuals
who are unlucky enough to use high-priced services in any given year. (e.g.,
non-life-saving surgeries, legal services for expensive lawsuits, etc.) It was
also unclear whether out-of-state clients would have to pay for in-state
services or whether businesses who service out-of-state clients would simply
have to just pay the tax themselves out of their own pockets. (Which would be a
clear signal for those businesses to establish themselves elsewhere)It was also dishonest to advertise the bill as a tax cut. It's clearly
not. There are a few people who will pay less, but the vast majority of people
will pay more. And it will result in significantly less profit for businesses,
which is tied to peoples' bonuses. Not to mention that it
comes with a reduction in income tax, which is tied to education. So Education
would have gotten dinged $50-100M statewide unless the bill was rewritten to
account for that. It was a bad bill. There's a reason why
47/50 states don't have a service-sales tax.
Some of the worst legislation ever proposed. We do not need to tax
everything.Keep calling your legislators and tell them not to pass
HB441 in any shape or form.
Seems like the legislators could easily have anticipated the uproar about the
taxes imposed on services BEFORE the session and addressed those concerns then,
instead of floundering during the session.
I'm glad it died.... now it's time to burn the corpse and salt the
ground where it stood, so it cannot be reborn this summer.
Community pages all around showed responses from citizens overwhelming opposed
to this HB441 bill, and the whole idea around it, over 95% of Utahn's were
sharing they were against this...yes they were informal online polls...but THANK
GOODNESS for social media on this one, it allowed Utahn's to speak up
quickly and loudly and say: HOLD ON!! No reason to rush through something so
significant! Why do we want to become just the 5th state to tax services like
this?! I am shocked it even got this far into the legislative process. The comments here, on this topic the last week, have all been against this.
Please learn from this state legislatures, we don't want a bigger tax base,
we don't want more taxes, we want simplicity. If your tax package
doesn't make things easier or simpler, scrap the idea and start over.
Please vote no on HB 441. We need less taxes, not more. This bill represents a
new and expanded layer of taxation, with additional forms, compliance time and
complexity. It also unfairly favors some businesses over others. Utah runs a
budget surplus. "Don't mess with success." Please do not do
impose of this tax system on us.