LOWER SALES TAX RATE TO 2%

Question: How can the Florida Department of Revenue increase income by lowering sales tax to 2%?

Answer: Tax goods AND services.

You, no doubt, have had work done on your car, or maybe to your home, in which the price of the labor was higher than the price of the parts used in the repair. Yet you had to pay sales tax on both goods AND services.

In my business I sometimes have not even charged the customer for a $2.00 part used in a $100.00 repair job in order to not have to charge the sales tax. Perhaps I am breaking the law.

But the decision would be much easier if all services were taxed at the same rate as goods - a low 2% rate.

To make it work, the taxing would have to be applied to ALL services, whether repairs, or consulting, or educational, or health care. I believe that by doing this the state revenues would actually INCREASE at this lower rate. I understand that each special interest group would want to be exempted, but the state must be firm.

It would be necessary to hire more Dept. of Revenue employees to handle the increased work load. Also, it would be necessary to launch a public awareness campaign for both business owners and customers.

The business owners would have to make sure they are duly registered with the Dept. of Revenue as a legitimate businesses. No more "under the table" businesses.

Customers would have to insist on receiving a proper receipt from businesses on which the Florida Tax Number is shown. They would actually be part of the policing effort to make sure all businesses are legitimate.

I'm sure it would "ruffle some feathers" in the beginning, but considering the fairness of application to all and the low rate, it should become a workable plan.