Business Groups "get it"

Over 39 pro-business groups have formed a coalition to "Ax the Tax", repeal the new sales tax on services which was just enacted at the beginning of this month. The 6% sales tax on a variety of services goes into effect on December 1st and will, in my opinion, deal a devastating blow to small and medium sized businesses across this state.

What the governor simply does not understand is that this tax, particularly the tax on business-to-business consulting services will add thousands of dollars in costs to small businesses that are barely making a profit now. This new tax will put many of them below the line between profit and loss.

I fully expect to see this issue on the ballot if it is not first repealed by the legislature. The bad news for business owners is that they will have to wait until June at the earliest to see any action on the initiative.