As Nation Moves to a Service Economy, States Look to Tax It More

Stateline: As sales tax collections slow and the nation becomes a service-based economy, many states are considering expanding the universe of goods and, especially, services that are subject to the sales tax.

For some states, expanding the sales tax is a straightforward way to get more revenue amid a budget crunch. For others, it’s a way to replace revenue lost in a political and philosophical decision to reduce personal income and corporate business taxes in an attempt to free capital to create more jobs.

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