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Monthly Archives: August 2016


By Allen L Phillips Presently, when you have your car repaired you pay sales tax on the parts but not on the labor.  Likewise your plumber charges you tax only on the parts he uses.  Your tax accountant does not charge you tax on his or her services.  Likewise your computer repairman.  SB-1445 would change all that. The stated intent of SB-1445 is: 1)  Provide tax relief to middle and low income Californians while "simplifying" the personal income tax and mitigating the reliance on top income earner's tax revenues.  They say such reliance has led to much instability in tax revenues due to economic cycles.  (Note that "simplifying" is ambiguous and no more detail is provided in the bill.) 2)  Broaden the tax base imposing a "modest" sales tax on services in the interest of producing "more stable revenues".  Health care services, education services, child care, rent, interest, and services provid ... read more

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