Nebraska CPA Society Highlights Myriad Problems with Proposed 'Tax Swap'
Taxing professional services is poor tax policy, punishes small businesses, and is politically unpopular.
Economic and Tax Policy Pitfalls for Nebraska of “Tax Swap” to Reduce Property Taxes
Proposals offered in Nebraska to reduce property taxes by expanding sales taxes — a “tax swap” — pose numerous pitfalls that should be considered.
Accounting is a Business Service and Doesn’t Belong in the Sales Tax Base
Attempts to impose sales tax on accounting services are nonsensical: the data shows that they’re by definition business services, and thus do not fit in any rational sales tax base. Public finance experts agree that consumption taxes, like the sales tax, should not include business inputs. More than 90 percent of accounting services are either business inputs, or are sold to governments and nonprofits. Subjecting them to sales tax isn’t tax reform.
Lessons Learned from Utah
Read more about Utah’s recent attempt to expand sales tax to services in 2019 and 2020 and how the effort ultimately failed.
