Some California lawmakers are seeking to impose a new sales tax on services, purportedly to solve the notorious volatility of the state budget. However, a recent report by economist Dr. Justin Adams for the California Foundation for Commerce and Education (CFCE) refutes these claims. The CFCE report examined all recent sales tax on services proposals and found that none of the proposals, no matter how the tax was structured, would solve California’s budget volatility.
The report, a full copy of which is available to the right, also found that imposing a new sales tax on services would create a host of problems for California consumers, taxpayers and businesses. Find out more below.