Happy New Year, again. Once we moved into January, seems like every state Governor has proposed some type of change to their tax system. Some major, some minor, but a lot of them are looking at increasing sales tax rates and/or even the what types of items or services sales tax will be imposed on.
Read the recent New York Times article about how states seem to want to move away from an income tax and increase their sales tax rates. The article seems to suggest that this philosophy has something to do with the idea of moving away from a tax on income, to a tax on consumption (similar to the broader idea of a federal consumption tax).
What do you think?
Should states eliminate their income tax structures and rely on a higher rate, broader base sales tax?
Will these proposals gain any traction and actually get passed?