In a word, NO!
Consumer services such as landscaping, manicures and pet grooming are not subject to Illinois’ sales tax as they are in many other states. It could generate billions for the state and allow legislators to reduce tax rates.
Tucked into a recent three-year budget forecast report issued by the state legislature’s Commission on Government Forecasting and Accountability is an acknowledgment that the state could expand its tax base by applying a sales tax to service-based businesses.
Something government finance experts say would generate billions of dollars and potentially reduce tax rates overall.
The types of services affected could include landscaping, pet grooming, beauty salons, mechanics, storage facilities and health club memberships, for starters.
“Illinois really only taxes the sales of goods, but we’re leaving out too much of the economic base by not taxing consumer services, which is a continually growing portion of the state’s economy,” said Ralph Martire, executive director of the bipartisan Center for Tax and Budget Accountability. “This is a system that was introduced in the 1930s.”
In fact, more than 70% of the state’s economy is derived from the sale of services, while less than 20% is based on the sale of goods, according to various economic studies.
“Taxing more services could be used to bring in more revenue to the state,” the commission’s report suggests. “It could also be used to offset a portion of the sales tax on goods and allow for the overall tax rate to be lowered.”
Read more here.
Someone actually thinks that a Democrat politician would lower taxes in one area by adding tax revenue in a heretofore untaxed part of the economy ? That’s hilarious .