A broad coalition that includes the California Chamber of Commerce, small businesses, and taxpayers yesterday announced the formation of the California Tax and Budget Research Project (CTBRP). The project will educate Californians about the harmful impacts that imposing a new sales tax on services will have on the state’s economy, budget, consumers and taxpayers.
In the past, state legislators have attempted to pass a sales tax on services—such as those provided by a plumber or a lawyer—without success. Talk of imposing a sales tax on services has been growing again recently. Although supporters claim it will stabilize the state’s fluctuations in tax revenue, a sales tax on services will actually drive up costs of housing, infrastructure and everyday services.
“If the problem is budget volatility, then a sales tax on services is not the solution, no matter how it’s structured,” CalChamber President and CEO Allan Zaremberg said. “Once you strip away this pretense, you see that a new services tax is just another tax that will simply make services more unaffordable for all Californians.” Read More