Expanding the Sales Tax

With a hat tip to Dan Yorke, below are some of the new things that will now fall under the expanded sales tax being proposed by the tax-and-spenders in our Legislature, under the, ahem, "ECONOMIC GROWTH AND FAIRNESS ACT OF 2008". Oh sure, there is this.....

Commencing on January 1, 2010, the rate shall be six and one half percent (6.5%). Commencing on January 1, 2011, the tax rate shall be six percent (6%). Commencing on January 1, 2012 and thereafter the tax rate shall be five and one half percent (5.5%).

Until we decide that we "can't afford" that reduction.

And then there is the fact that the Income Tax is going to INCREASE, anyway:

For the period January 1, 2002, and thereafter through July 1, 2008 the rate shall be twenty-five percent (25%) of the taxpayer's federal income tax liability. For the period January 1, 2008, and thereafter, the rate shall be twenty-seven and one-half percent (27.5%) of that taxpayer's federal income tax liability, as defined in subsection 44-30-2(b).

And the flat tax option will be terminated (p.37) and capital gains taxes are going back up (p.39-40, 47). Yup, why cut government when we can tax more?

OK, here's the almost complete list of new "revenue sources" and revoked exemptions.

The furnishing of dry cleaning and/or laundry services.

The furnishing of linen and uniform supplies.

All services provided to domestic animals except those provided by a doctor of veterinary medicine.

The furnishing of watch and jewelry repair services.

Appliance repairs.

Any public golf course green fees and private golf country club fees and membership dues.

Marina fees and services.

Health club fees and services.

Any temporary employment agency fees and services.

Telemarketing bureau fees and services.

Telephone answering services.

Any security system fees and services except those provided by a locksmith.

Any janitorial fees and services.

Any landscaping fees and services.

Any carpet cleaning fees and services.

Any swimming pool maintenance fees and services.

Any solid waste hauling fees and services.

Any porta-pit rental fees and services.

Payroll fees and services.

Any tax preparation fees and services.

Any architectural fees and services, including landscape activities fees and services.

Any interior design fees and services.

Any management consulting fees and services.

Any marketing research and polling fees and services.

Any real estate property management fees and services.

Any motion picture admission tickets.

Any limousine service and usage fees.

Any dating service fees.

And here are some of the things no longer exempt:

Newspapers

Containers

Camps with fewer than 75% of Rhode Islanders in attendance

"Certain Institutions" - health care facilities

Trade in value of Motor Vehicles

Precious Metal Bullion

Compressed Air

Promotional and product literature of boat manufacturers

Equipment used for research and development

Banks and Regulated investment companies interstate toll-free calls

Mobile and manufactured homes generally

Horse food products

Non-motorized recreational vehicles sold to nonresidents

Aircraft

Dietary Supplements

Sales by writers, composers, artists

Sales to common carrier for use outside state

Buses, trucks and trailers in interstate commerce

Other

2% tax for all recipients of accounting services provided by accountants and legal services

Historical Bldg Business tax credits are discontinued

Various exemptions outlined in Sections 44-11-12, 44-11-14.5 and 44-11-43 of the General Laws in Chapter 44-11 entitled "Business Corporation Tax" are repealed.

Various exemptions outlined in Sections 44-17-1 and 44-17-2 of the General Laws in Chapter 44-17 entitled "Taxation of Insurance Companies" are repealed.

Biotechnology investment tax credit

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