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State Tax Plan Not Sitting Well With Many

Posted: 6:00 pm EDT July 13, 2009

Customers and stylists at Carmen and Carmen salon are talking these days about how the cost of services there could soon increase.

Lawmakers in Raleigh have a list of new taxes they want to introduce in hopes of raising roughly $1.6 billion for vital services, like keeping teachers in schools. It would mean paying a sales tax on personal services, like haircuts and auto repair.

But Eyewitness News found out the proposals in Raleigh would not include a sales tax on services like those from attorneys, architects or accountants.

Ann Jefferson, the controller at Carmen and Carmen said a selective sales tax would not only hurt business, but it's simply not fair.

“I understand the state has to take care of the budget shortfall and that the money has to come from somewhere but if we're going to do it, let's not isolate a certain group of businesses," she said.

Eyewitness News spoke with the North Carolina Justice Center. The spokeswoman said she didn't see the disparity, that personal services are for personal consumption while legal and accounting services are more often for professional or business use.

But that isn't sitting well with the John Locke Foundation, a government watch group. Spokesman Joseph Coletti said, "The overall package is influenced by special interests. Legislators are taxing the very services that are more in demand during a down economy, compounding the pain for families."

PDF: Perdue New Taxes

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