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Tax plan targets services

3 years 6 months 1 week ago March 14, 2013 Mar 14, 2013 Thursday, March 14 2013 March 14, 2013 6:20 PM in News
Source: WBRZ
By: Rob Krieger

BATON ROUGE- Governor Bobby Jindal's plan to reform the state's tax system and eliminate the individual income tax would also need to add taxes on some services for the first time.

Traditionally, services like haircuts, landscaping, pet grooming and cable TV aren't taxed, but Jindal's plan would add the new 5.88 percent state sales tax to those costs.

"It reduces our ability to make money as a small business because those clients are only going to want to pay a certain market value for their services," said Mary Verlander, who owns Salon Eden at Towne Center.

Verlander is worried that clients might start to visit less often if the price of a haircut goes up.

"What it's gonna mean for me is I'm gonna go a lot longer in between visits because it's a service that I can go without, I don't want to go without it," said Brookie Allphin, who was having her hair styled, "which means less money for the salon, which through the trickle down effect means less money for local businesses."

"Being a small business we can't afford for them to take longer, because we depend on them for our income," said Verlander.

The tax plan does exempt some services including health care, education, construction, real estate, financial services, advertising purchases, legal services, oil and gas services, and funerals.

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