Taxing Arnold and his friends to solve the budget crisis.

[Cleita]

While poor people are paying 6.75% to 7.5% sales taxes on their purchases at Wal-Mart this is what the rich are not paying value added tax on in California:

1. Attorney fees
2. Accounting fees
3. Landscape services
4. The pool guy
5. The financial planner
6. The interior decorator
7. Plastic surgeon and botox for the wife
8. Spa treatments
9. Personal trainers
10. Limo services
11. Personal shoppers
12. Memberships like for the country club and golf or tennis club.

I could go on and on. Would it hurt to put a value added tax on these services to the many rich people who reside in California to break the budget crisis and provide some social services for the poor and the working poor, many of whom are providing these very services?

[tularetom]

1. A value added tax would bite ordinary Californians in the ass just as much

When you have your ten year old clunker repaired because you can't afford a new car, the labor portion of the bill is currently not taxed. As is the labor part of such home repairs as re roofing, insulation and weatherization and repair of furnaces or AC units.

I'm leery of VAT's because each step in the process of providing goods and services to the public would tax it's efforts with the result a snowball of taxes on the finished product. It would make everything cost more in addition to being regressive.

[Cleita]

2. This is where you have to be selective on whom gets taxed.

I never mentioned repairing the car or anything actually, for that reason. However, how many of us visit $400 an hour attorneys on a regular basis? (I got that figure recently from someone who does and who can well afford a 5% value added tax.) I would keep car repair out of that or anything that not included.

[Fire Walk With Me]

3. Tax the rich.

And I'll bet that at least seventeen homeless persons could be comfortably housed and fed in Ahnold's mansion. :thumbsup: