As the committee considers ways to broaden the tax base, they will be looking at including some or all services.?
Three areas mentioned during today’s hearing are health care, professional services (legal, accounting, and architectural services were called “the big boys”) and construction/rental (apparently the Home Builders balked when only construction was included and insisted that rentals be included).? Chairman Ross has asked for research into how other states tax services.? By the way, not many do.? Hawaii is the only state to tax medical services.? There was interesting discussion on this.? According to the Hospital Association, 30 percent of hospital revenue is from private insurance companies, leaving the government with the other 70 percent.? If health care is taxed, private insurance will pay the bill. We’ve heard so much about the government expanding health insurance to all citizens.? How will taxing health services help expand health coverage?? What is the impact??
