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Name: pbylsma
Location: Commerce, CA
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LET'S TAX THE LAWYERS!

A May 6, 2008 editorial in the LA Times shocked me: I could not believe I agreed with some of it.

Yea! Let’s tax the lawyers!  

Yep, that's what they said.  I love it.

Which do people like less, I wonder: lawyers or taxes?  This may be one of the only comparisons in which lawyers come out ahead! Talk about windfall profits, they know about that.  Holy moly, the City should immediately institute a tax on the money won by the lawyer of the Tennie Pearce case so we can get back some of the money our city blew on it.

Yea! Let’s tax the lawyers!

It is their windfall profits demagoguery come home, it is the class hatred stirred up by the Left coming back to haunt them.  I rant about Big Union and Big Lawyer (especially relative to the MSM and Left’s constant demonizing of Big Pharma and Big Tobacco), and if things are to be equal, as the left wants, then in this case we might actually agree on something.

The editorial, Service Taxes Just Might Work, discusses a service tax which in several other states routinely generates revenues from taxing sales of services such as car repairs and health club memberships. Service taxes are drawing new attention here because of the budget shortfall of $20 billion or more. Deep budget cuts certainly won't be enough. Finding enough savings from closing special-interest tax loopholes is not going to work. The state needs revenue.

I hate taxes, but in this case I agree with some in the governor's administration who are focusing on a sales tax on lawyers and accountants.  Taxing even some services the same way the state taxes goods would be a step toward a more rational and equitable system.

Yea! Let’s tax the lawyers!

They are also looking at taxes on tickets to sporting events, movies, amusement parks and golf courses.  But I ask you dear reader, where is most of the money and profit being made in this state?

Yea! Let’s tax the lawyers!

California's economy has boomed over the decades, with much of the growth in services. The state once relied on sales taxes to supply most of its revenue, but now taxes on sales of hard goods represent a diminishing slice of the money the state needs. As the state's service economy grows along with its population and its expenses, its tax revenue is left behind.

Here is where the Times actually made sense: “Applying the state's current 7.25% sales tax (8.25% in Los Angeles, higher in some other cities and counties) to services across the board makes sense. Imagine the fellow who runs a small car repair garage who juggles schedules to make a living. Will he have to hire an accountant to properly tax his customers?  The real question is whether or not he will bother? New paperwork requirements could sap strength from California's economy at just the time it needs a boost.  But one thing is certain: lawyers already have the number crunchers on staff to make sure the state gets its cut.

I wish this could be a ballot initiative as soon as possible. I can only imagine what our Lawyer-controlled legislature is going to do with this idea. 

Oh well, it sure sounded good.

 

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