The Case for Taxing Services

What services to tax? It is possible to choose to tax certain services, but not all. In the FTA survey update, the FTA stated: "The results of this survey illustrate that most states tax services to a certain degree. Despite the political rhetoric, there are many services that do not pose controversy and are widely taxed. As the table illustrates, utility services are taxed in most all states. Hotel or lodging services are taxed in all states (some at the local level). Also, admissions and repair services are taxed in many states."

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