05-01-2011, 03:33 AM
http://www.kitv.com/video/27734408/detail.html
Anyone who builds a new home or hires a contractor will now pay up to 4% more.
The state has just approved a 4% increase in the tax paid by contractors who hire subcontractors. Currently, contractors are exempt from paying the 4% GE tax on subs. Homeowners still pay 4% tax on the subs' work one time when the pay the contractor. In the new scenario, homeowners will be taxed TWICE on the same service!! The contractor will pay 4% tax on the subs' work (which will be passed on to the homeowner in the contractor's bill,) and you will also pay the 4% tax when you pay the contractor for the subs' work.
So, homeowners will essentially now pay 8% tax for the work of subcontractors. This is an outrageous and underhanded way to collect tax revenue. Taxing twice on one service that is provided is unfair.
If the lawmakers want to bring in more GE tax revenue, then just raise the tax and affect everyone equally. Burdening the cost of construction with one more tax is no way to help a struggling economy.
Anyone who builds a new home or hires a contractor will now pay up to 4% more.
The state has just approved a 4% increase in the tax paid by contractors who hire subcontractors. Currently, contractors are exempt from paying the 4% GE tax on subs. Homeowners still pay 4% tax on the subs' work one time when the pay the contractor. In the new scenario, homeowners will be taxed TWICE on the same service!! The contractor will pay 4% tax on the subs' work (which will be passed on to the homeowner in the contractor's bill,) and you will also pay the 4% tax when you pay the contractor for the subs' work.
So, homeowners will essentially now pay 8% tax for the work of subcontractors. This is an outrageous and underhanded way to collect tax revenue. Taxing twice on one service that is provided is unfair.
If the lawmakers want to bring in more GE tax revenue, then just raise the tax and affect everyone equally. Burdening the cost of construction with one more tax is no way to help a struggling economy.