Reader comments: Huntsman ready to revisit sales tax on services

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Another tax | 4:27 p.m. Jan. 9, 2009
Great! All we need is another taxing system.

While I am in favor of taxing all activity on an equal basis, if this tax is implemented it will follow the same kind of pattern other taxes have had.

There will be a complicated formula for figuring out which services will be exempt and for those not exempt, what the rate will be for each kind of service. Lots of lobbying efforts will be spent to convince the state legislature to grant special status to certain kinds of services.

So instead of a flat 5% tax on all services, we will get a 10% tax on "luxury services" and a 2% tax on "essential services" and a bunch of other rates in between. Then the counties, cities, water districts, and other taxing entities will want a cut.

More laws will have to be passed for enforcement, fines set up for those who fail to comply, and lots of regulations set up.

In the end it will add another layer of bureaucratic paperwork on our society and be another bale of straw on the camel's back (i.e. productive companies and citizens).
arc | 4:30 p.m. Jan. 9, 2009
I don't want the sales tax on services, and I don't want to eliminate tax on food. We lowered the tax on food, and it is fine.

I am not sure about the $2.30 increase of the $0.70 tax on smokes. If the only reason to raise it is to kill the tax on food, I say leave it alone.

Just what we need to do is increase taxes on buying a house, going to the doctor, designing a house, or having the lawn mowed. Would you add baby sitters to the sales tax list?
Huntsman | 4:32 p.m. Jan. 9, 2009
This is what you re elected unanamously
Just another mad man in office
I would be ashamed to put my name on this one
I hope he does not run for a third term.
Comments continue below
lost in DC | 4:43 p.m. Jan. 9, 2009
another new tax? Are you sure this guy's really a republican??
itsjustme | 4:49 p.m. Jan. 9, 2009
At some point, our governments have to be reigned in. We live in a country where "We, The People" are in charge of government, not the other way around.
Taxes on all levels are far exceeding many peoples' ability to pay them.

Government needs to stop spending like drunken sailors, and live within a set budget. We, the people do. So should Government. NO NEW TAXES!!!
Regulr Joe | 6:03 p.m. Jan. 9, 2009
Remember, he supported the same old good ol boys club by backing up the socialist McCain. He is obviously a social elite that believes he and his kind are smarter than the rest of us and therefore have no problem trying to trick us with the shell game on taxes. Its just the same old good ol boys club.
uncannygunman | 6:50 p.m. Jan. 9, 2009
Wouldn't a 1/2% increase in the sales tax on all non-food items (including tobacco and alcohol) raise a lot more money a lot more fairly?
Eric Larsen | 9:47 p.m. Jan. 9, 2009
Can we stop with the labeling already? "He must not be Republican 'cuz he's raising TAXES"..."He must be a socialist 'cuz he's raising TAXES."

Get over yourselves. He's doing a good job at trying to fairly balance the budget. I agree that government spends too much...that's practically a given. At least he's trying to actually have the money to spend as opposed to running up a huge deficit to leave on the shoulders of the next governor. At least he realizes it and he's throwing out a legitimate idea of how to cover the shortfall.

If you're going to criticize, go right ahead...but at least have the intestinal fortitude to propose a different solution instead of firing holes in the propositions given by others.

Governor Huntsman is a fine leader. If you take two seconds to read the article, you'll notice that he's CONSIDERING the taxation of services (i.e. it's not a definite thing; i.e. he's open to other approaches; i.e. he's not a nutcase).

I agree that taxation of services has its negatives. I think we should raise the tobacco tax; this will increase revenues, possibly decrease smoking (a nasty habit), and possibly decrease health-related costs of smoking.
Grandpa | 10:20 p.m. Jan. 9, 2009
As a retiree I am concerned about taxing medical visits. I am sure Medicare will not pay for the sales tax and possibly the seconary insurance won't either. A $ 50,000. hospital bill would leave me paying about $3,000.00 which would wipe out what savings I have in a short time. I pride in taking care of myself and not asking the state for help. This would be quite a blow.
Tax the minority | 6:01 a.m. Jan. 10, 2009
Sure, lets tax a few people to aid all the rest. He and his followers are being absurd in how they are dealing with taxes on all things. They still don't want to relenquish and admit that the economy cannot take more taxes of any kind. The food tax is miniscule in day to day life, the poor don't get taxed on food, they all have state provided debit cards that exempt them from sales tax. A recession is not the time to raise or implement new taxes, it will kill the economy more and deepen the recession. Gov Huntsman better do some home work and start cutting departments and welfare services, not be rasieing taxes, not even on cigarettes. If he wants a health tax for all then make all pay a health tax. Punishing a minority group with taxation is poor leadership and unfounded. How about an illegal alien tax or a black citizen tax or being and Italian tax? Its the same kind of rediculous tax he is proposing on cigarettes, punish a minority for personal vengance and hate.
A LAWYER | 9:26 a.m. Jan. 10, 2009
Go ahead, Governor, and tax our services. . .I'll just raise my fees to compensate for it.
NO MORE TAX! | 12:10 p.m. Jan. 10, 2009
Novel Idea: How about looking at what you're spending? People of Utah: Stop demanding so much government service-start doing something on your own! Lets vote out anyone who wants to increase taxes, and start voting in someone-including any democrat so inclined-who will cut spending AND taxes. Our State governement is way too big, and Utahs tax burden is one of the highest around. Lets cut back, reduce, eliminate, and have government do only the absolute bare necessities. It starts with the people and their votes. Get to work.
JMT | 5:15 a.m. Jan. 12, 2009
Finally, Arc says something I agree with.

We should keep in a mind a simple fact. Huntsman has done something that almost no one thought possible. He has spent more money, more rapidly than even Mike Leavitt. If you go back to the 1960's Huntsman has grown government at an amazingly fast rate. In fact, he has spent money more rapidly than even George Bush and his massive debts. Huntsman is another neo-con, big government Republican.

And now he needs to find a new source for his spending.

The small tax is horrible! It will be measured not just in the amount of the next tax but the time for filing it, enforcement, etc. And it is 1.2% now, wait until it is raised by a future neo-con Governor.

Since Huntsman has already stated he is not running in 2012 he is not worried about the voter. He has already auditioned for the Obama administration through extreme environmentalism and is likely doing it again. He realizes the legislature will not pass a tax increase but is now publicly on record as saying he supports tax increases. This is a must-have in order to work in a Democratic Administration.
Just Thinking | 5:48 a.m. Jan. 12, 2009
of new ways to raise your taxes and grow the size of government. Yep, that's my job. I'm Smiling Socialist Jon.
@Another Tax | 6:38 a.m. Jan. 12, 2009
Well said. You're absolutley right. The best tax system is the simplest: a flat income tax, no loopholes, no deductions. That would allow for a very low rate without subsidizing homeowners, or any of the silliness that gets preferred treatment.

As for the severe Tobacco tax, call it what it is: a tax on the poor. In general smokers tend to be lower on the income ladder, so this is a very regressive tax. Maybe we should go after other minorities, like a special tax on Spanish language media, or let's tax people who drive older cars. We could come up with all sorts of mean-spirited taxes that punish minority groups who can't afford it.
taxed to death | 7:28 a.m. Jan. 12, 2009
No tax on any business, PERIOD!

As 'A LAWYER' said, he will raise his fees and the consumer will pay in the end. It doesn't take a brain surgeon to figure that out. When will the public wake up?
Get rid of Huntsman!!!! | 8:41 a.m. Jan. 12, 2009
I'm tired of Socialist Huntsman. I want SMALL GOVERNMENT. As much as I hate to say it, maybe it's time to to vote for some Democrats (on the state level). The Republicans keep failing me.
just another democrat | 9:01 a.m. Jan. 12, 2009
I said it before the election and I'm saying it now.

Huntsman is a democrat posing as a republican. When will be people stop voting for people just because they claim to be a republican and have a famous name?
Stable govt income? | 9:16 a.m. Jan. 12, 2009
So, govt (unlike citizens) shouldn't have to tighten it's belt when the economy is slow? A service tax is ridiculous and bad public policy. It will discourage the use of professionals which will make our economy slow even more. Huntsman's proposal is very liberal and and will cost taxpayers dearly, regardless of offsets. It's another bait-and-switch from the administration.
tax payer | 10:03 a.m. Jan. 12, 2009
The primary job of politicians is to find money; your money!!
Wouldn't it be nice if they were by law forced to make do with what we already give them in so many taxable ways and quit trying to think of other ways to get into our pockets.
Debbie | 10:14 a.m. Jan. 12, 2009
These things are often called "sin" taxes, but the truth is, there is a huge health association so it makes sense to do all that is humanly possible to decrease smoking - a totally unnecessary and preventable addiction; not just a little "sin." Alcohol is similar. It destroys families, income, and kills. It is a sin because it does this damage. It's not just something that conservatives want to do to punish.
Sean | 11:30 a.m. Jan. 12, 2009
Debbie,

Admittedly, alcohol "destroys families, income, and kills.", but in only fairly rare circumstances. The vast majority of gentiles can use it responsibly. This is one of the falacies that you've learned form being sheltered from reality too long. Adults can and will act responsibly if given the opportunity.

How about this: we increase the 'sin' taxes, but include a few other things as sins:

A tax on the great and evil sins of ice cream, Mcdonalds, funeral potatoes, partially hydrogenated oil, pink creamy jello with nuts, soda and movie pop corn. They are all really bad for you and extract a health premium on society. And you can now (hopefully) see the slippery slope. Think it's not possible? Well, it's happening in New York, Chicago and dozens of other places as we speak.
thinking for myself | 1:34 p.m. Jan. 12, 2009
"Lawyer" has it right. So will "hair stylist", "plumber", "nurse", " physical therapist", "sheetrocker", "framer", "roofer", "doctor" "massage therapist", "trucker" and every other person in this State who is required to hold a license. That's who performs the everyday "services" targeted by this ridiculous idea.
Realtor | 2:11 p.m. Jan. 12, 2009
A sales tax on services would seriously hurt an already weak housing market as well as homeownership in general. Under such a proposal, each of the myriad services used to build a house would be taxed, resulting in drastic increases to the price of a home. The services used in buying and selling homes would also be taxed, including real estate commissions, appraisals, home inspections, title work, surveys, etc. With all of the extra costs involved just to complete a transaction, many consumers would be deterred from home buying, moving or using a professional.
Realtor | 2:13 p.m. Jan. 12, 2009
No new taxes! It is hard enough to sell our services to home owners who can't afford to give up a penny of their profit. Please do something to make it easier for us in this economy - not more difficult!
Either or | 2:13 p.m. Jan. 12, 2009
Either have a flat income tax that is fairer OR tax everything sold with luxury items receiving a higher sales tax portion. To have both a sales tax on professional services and income tax will start driving people away. Sharpen the pencil downtown folks and cut the fat. Professional services being taxed will just further eat into people's ability to have businesses and will ripple into the economy as another failed business and less jobs. It will scare a lot of people away from living here. DON'T DO IT.
Aaron | 2:14 p.m. Jan. 12, 2009
As a realtor I may work 3 months with a buyer, making calls, sending emails, previewing homes, showing homes, writing offers, following through, etc. Then at the end of all that I may get a $5,000 commission which seems like a lot for one days work but not 3 months of work.

Thanks
Katie | 2:15 p.m. Jan. 12, 2009
Implementing a sales tax on services(especially Housing related services) would be a very bad idea. I hope he can come up with a better plan.
SS | 2:15 p.m. Jan. 12, 2009
Bad economy -> Raise Taxes?
Bad Housing Market -> Raise Taxes to increase cost to construct homes?

This guy is just trying to make up for their tax recodification screw up.
Gary Juretich | 2:16 p.m. Jan. 12, 2009
If the state wants to get the housing market going. Puting another tax on it may help keep the market on homes flat. Keeps first time home buyers out of he marketfor quite some time.
David James | 2:17 p.m. Jan. 12, 2009
I don't understand. We need to add taxes that will further weaken the economy while evaluating stimulus programs (I understand the governor is considering state wide housing stimulus programs). Perhaps the Governor would consider letting people keep money and use that to build businesses, buy homes, raise families and we will do fine stimulating the economy.
Joe the Realtor | 2:18 p.m. Jan. 12, 2009
You think the affordability of homes is bad now. This will especially KILL OFF ALL NEW CONSTRUCTION. Think how many subs or services has to go into a house; that will have to be tacked onto the price and that isn't what our current recession needs. Especially when it tied so strongly to the housing market. BAD IDEA.
Rob | 2:18 p.m. Jan. 12, 2009
Another sales tax...this time on every part of selling or buying a home. Great. Let's really hurt the consumer again. NO.
Ryan | 2:18 p.m. Jan. 12, 2009
A service tax will just price everybody out of the market, since prices are already at an all-time high in almost every industry. That will increase inflation and make the economy worse. Cut spending, don't increase taxes.
Jared | 2:18 p.m. Jan. 12, 2009
Is Governor Huntsman a Democrat or Republican? Does he really think taxing services will lead to an overall healthier economy? I would think with his expertise in the private sector he would realize that a tax on services will hurt the economy as a whole as well as the housing market.
Mike Metzger | 2:18 p.m. Jan. 12, 2009
Taxes on services are the wrong plan in any economy. The government needs to find ways to cut spending (waste) and decrease taxes. Many services are already too expensive.
CONCERNED REALTOR | 2:20 p.m. Jan. 12, 2009
NO TO TAXES ON SERVICES!! THIS WILL ADVERSELY AFFECT OUR HOUSING MARKET AS WELL AS BUYERS AND SELLERS TRYING TO BUY AND/OR SELL PROPERTY!

P.S. Can we see more talk about ideas and alternatives regarding this topic rather than critical moral banter? Let's try to focus here.
Alfredo Gonzalez realtor | 2:21 p.m. Jan. 12, 2009
why do you want to keep making it harder for families to buy thier houses, this is not the time to make more changes i feel.and you need to represent the best intrest of the people i feel that by adding extra fees is not going to be a solution but your adding to the problem. you should fight to get back the seller down pmt. asst. for buyers program this will allow more familis to buy homes that are in distress of being forclosed on
Vickie | 2:21 p.m. Jan. 12, 2009
If the governor insists on raising taxes on "services" then lets think a minute who some of those servers are. One example is the services we receive when we purchase a home...it would involve the realtor, the title company, the inspector, the lender. So in our already suffering housing market, where would these "service fees" go? Right on top of the price of the home. Those who can not afford a home now would be out of the market for home ownership for sure. It is just another way to raise taxes and increase revenue without those in our state government saying the awful TAX INCREASE. We all need to take the time to warn family and friends. Write emails and letters to the legislators. Write the governor. Lets not sit back and watch our hard earned money be taxed again in a round about way of saying tax increase....
Becky | 2:21 p.m. Jan. 12, 2009
I don't want the service tax!!!!!! We already pay to much for services as it is now. They have to follow so many goverment requirments that it cost all of us now. We don't need more taxes right now. We need to get people to start buying and this would not help at all. We want to get people into homes and this makes home even higher in price than they are right now. A lot of young couples just starting out can't get a home because of the high cost of homes. I think we need to step back and look at any new tax and see what it will cost us in the future. What are the benefits and prove to us we need it.
GC, Realtor | 2:22 p.m. Jan. 12, 2009
I think that what the governor is proposing regarding a sales tax on professional services would be very detrimental to the already strained housing market and to every small business owner in the state. I think that lawmakers would need to take this proposition into serious consideration and put it under heavy scrutiny prior to allowing it to become law. It does hurt those of us who are trying to run small businesses, which are the beating heart of the USA, and in my opinion it would harm the American dream. I hope that this wouldn't even go to a vote.
Mr. Wright | 2:22 p.m. Jan. 12, 2009
Governor Huntsman,

I understand you're in a tight spot with the current state of the economy; however, taxing professional services is only going to hurt the economy and all the professionals that are in service oriented careers. Adding extra fees and taxes to an individual for using a professional will only discourage people from using professionals. This in turn will only move the economy in the wrong direction.

If you really want to stimulate the economy, cut the state income taxes. I'm getting ready to send in my 4th quarter taxes, if I didn't have to send in so much dang money in taxes, I would go buy a new GM or Ford car; but, unfortunately, I have to send it to government to spend on bailing out banks rather than helping the car dealership make some money.

I beg you to please not raise taxes, please, please, please. Talk to the professionals from the fields you plan on whom you plan on raising the taxes and fees, I promise they'll tell you that it will just hurt them even more.

Thanks for your time & consideration.
Chris | 2:24 p.m. Jan. 12, 2009
"Lawyer" isn't the only one who will have to pass this along to the very people that the Guv thinks he's helping. I'm not just talking about Plastic Surgeons or Accountants either. I'm talking about every person in this State who requires a State license to make their living. Hair stylist, manicurist, my regular doc, plumber, electrician, dentist, nurse, roofer, sheetrocker, general contractor, backhoe operator... the list is endless! I'm not aware of any of the professions I listed above that can or will be able to absorb additional costs without passing them on to the customer, who also probably can't afford it these days. This will also further cripple an already reeling housing industry as there are tons of people that would be subject to these taxes involved in buying and selling homes, even if you try to sell it yourself. Really poor idea Guv.
Taxed2much | 2:25 p.m. Jan. 12, 2009
If the Govenor really thinks that the consumers will lose in the end by paying more for services, maybe the Govenor is smoking something. I hate politicians that think renovation is innovation. Why don't they learn to live on less? In the past 5 years property taxes have doubled. Has services doubled?
Gail Wathen | 2:25 p.m. Jan. 12, 2009
This might enable us to better afford food, however we would not be able to afford medical services, or even have a roof over our heads, because of the excess taxes. Food just doesn't seem that good when you are sick and sitting out in the cold.
Brad | 2:26 p.m. Jan. 12, 2009
Real estate service taxes would be inappropriate! It's already way too expensive in transaction costs as it is...
Anonymous | 2:27 p.m. Jan. 12, 2009
Maybe it is time we the people take a stand. All industries today are eliminating jobs and reducing costs, that is except our government. Do we really need this many government officials to understand what the people are saying? Rather than raise taxes and find new entities to tax, lets reduce cost in government through a major reduction in force.
Tony du Preez | 2:27 p.m. Jan. 12, 2009
my thoughts are that that would be the very last straw!!

to now create a "new" tax would drive the, already wary and petrified Utah buyers, completely away

we cannot afford to burden an already burdened industry without some serious negative impact

please find some other way to get the revenue ot better still, find a way to improve government so it will no longer need to the revenues!!
Selina | 2:27 p.m. Jan. 12, 2009
If you tax on real estate services, such as realtors, appraisers, home inspectors, etc., people will be deterred from buying home because the taxing will be so high, and they will not want to use those professionals, and it will get them in a lot of legal trouble if they buy or sell their homes themselves and didn't do home inspections or appraisals.
Anonymous | 2:27 p.m. Jan. 12, 2009
Taxing services would just be an tax and the Home Buyers would take the hit. Most taxes are always past on to the buyers. This would make it even more difficult for people to purchase homes, especially First Time Homebuyers.
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Governor Huntsman accepts the 2009 Economic Report from Utah's Chief economist Juliette Tennert at the Hilton hotel in Salt Lake City. (August Miller, Deseret News)
August Miller, Deseret News

Governor Huntsman accepts the 2009 Economic Report from Utah's Chief economist Juliette Tennert at the Hilton hotel in Salt Lake City.

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