If you want to know where to find some money for state government, Ralph Martire has some ideas. The executive director of the Center for Tax and Budget Accountability shared his ideas with members of the Senate Revenue Committee. What about adding the sales tax to at least some services? Martire says “taxes on services are significantly less regressive than taxes on products.” He cites the example of a middle-income family buying a lawn mower and paying sales tax, and an upper-income family hiring a lawn service and paying none.
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“Low- or moderate-income families, if they get some targeted tax relief, they are likely to spend (the savings) and they are likely to spend it in their local economy,” Martire said. He said the higher-earning family would either save the money or, say, spend it on a big vacation.