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What do haircuts and auto services have in common? – Nothing!

Written by maryp posted on Tuesday, January 1st, 2008

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Happy 2008!

Today, this little tidbit of information is just a blip on the radar screen of our news in California, but one that you may want to pay attention to if you are a consumer of auto repair services, haircuts or both!

Since we have a very large deficit in the budget of our State this year, the legislative analysts are looking at ways to bridge the gap of about $15 billion. So what that means is that they are once again looking at possibly taxing “services”. This has been looked at previously, most recent being when Mr. Angelides and our Governor were facing off. Mr. Angelides was wanting to tax services, such as auto repair and our Governor was against it for several different reasons, most notably, that it is bad for the consumer and the small businesses. So, there were a lot of people that were paying attention to this and helped keep it from happening.

But, now in the guise of taxing “services”, such as “haircuts”, it’s going to be a target that could be reached, if the people of the state don’t realize what is going on. Yes, that’s right. Now they, (the legislative budget analysts), are saying that “haircuts” and “other” services should be taxed. Let’s face it, a tax on a haircut is a lot less than a tax on a major service or repair to your vehicle.

So, it looks as if the wording, (aka spin), has been changed by the legislative analysts. (Aren’t they tricky)? However, the outcome is the same. We understand it to mean that you would be paying taxes for the work/labor/service of your computer repair person, your auto body or repair shop, your local handyman, electrician or frig repair person, (not just your favorite hair stylist)!

All of us are already being impacted by the higher price of fuels and we hope the legislators will be smart enough to see that taxing “services” is just not a good idea.

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