This week’s hot topic on the hill is House Bill 441. The bill would drop the state’s current sales tax from 4.7 percent to 3.10 and the current income tax from 4.95 percent to 4.75 while extending new taxes to some previously untaxed services.

“To do something as drastic as this bill is going to do. I’m not telling you that I think we need to do some tax reform, we’ve become very, very lopsided but I think when you do something that’s going to change how business is done, you need to give people time to have input and kind of wrap their heads around it and speak their minds and so that’s not really what’s been able to happen here.  Because literally, Thursday was the first day, we really got to hear what this bill did or does,” stated Representative Christine F. Watkins. Proponents of the bill feel that by dropping both the sales tax and income tax would be more revenue neutral for the state.

If the bill passes taxpayers would see taxes on such items as haircuts, lawn care, attorney fees, and online streaming services, this is just to name a few. “There’s just across the board things that we normally don’t pay taxes on that you would start paying taxes on. Like I said they are saying that this would be tax neutral. So, as you drop things down, you’re broadening the base but there is a lot a lot of concern. I’m not going to support it. I know that we need to make changes – I get that, I understand that but I think that sometimes when you do this you just don’t ram it down people’s throat,” explained Representative Watkins. The HB 441 now goes to the House floor for consideration.