Tuesday, May 25, 2010

Tax tricks: Michigan service tax defended by phantom facts

Tax tricks: Michigan service tax defended by phantom facts - The Oakland Press Opinion
"Indeed, enacting a service tax would make Michigan unusual.
According to the Washington, D.C.-based Tax Foundation, only five other states generally tax services: Hawaii, New Mexico, Mississippi, South Dakota and West Virginia (not all of them state this explicitly in their statutes).

These states make it possible to check whether a service tax would live up to its promises of stability and better reflect the changing economy.

As it stands, states with a service tax have actually experienced a relative decline in sales tax revenue."

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