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by asmithmd1 4707 days ago
No plumbers don't charge sales tax on services; neither do doctors, lawyers, dentists, or landscapers. Sensible states tax things they want to discourage like gasoline use or smoking. They don't tax people trying work more.
2 comments

It seems ridiculous to charge only one profession for providing service, and it sounds like software people just have the worst lobbyists and the worst public image (plumbers are the iconic symbol of the "little guy" small business).

Here in Ontario it's much simpler (but steeper) - the harmonized provincial/federal sales and service tax is 13% on everything. Sales, service, you don't have to give a crap. There's a short list of exemptions for groceries and medical stuff.

Our taxes are high, but straightforward.

There is no money for politicians or lobbyists in straightforward laws.

Every store in MA has their own opinion about what foods are taxed and what aren't. Candy-yes, gum-no, ice cream at a grocery store - no. Ice cream in a cone - yes.

You guys pay 13% every time money exchanges hands? Does that include when you eat a restaurant, and if so, do you also tip the waiter?
You realize that in most of the U.S. you pay sales taxes on restaurant food and tip the waiter, right?

In some states groceries are exempt from sales tax, but restaurant food is not exempted by any state (except in the trivial sense in states that don't have a sales tax at all).

New Hampshire even has a special sales tax just for restaurant food (despite not having a general sales tax).
With very little, very clearly defined exceptions, every time money exchanges hands to pay for a service or a good, tax is applied. We also tip. The country has a set of two minimum wages. One for jobs that do not make tips, and another one, slightly lower, for those expected to make tips.

Federal tax is 5% and provincial tax ranges from 0 to 10%, meaning you pay 5-15% depending on your location for each good or service rendered. Essential goods/services (defined by each province and the federal gov.) are not subject to the specific tax (e.g. in Quebec, books are considered essential goods by the province, but not by the federal, so you pay only 5% tax)

No (some things are exempt), yes (food at a restaurant is both a good and a service), and yes (the HST goes to the restaurant, the tip goes to the waiter).
Its a value added tax, so no, 13% doesn't get taxed every time money changes hands. Only the added value.
In Australia it's 10% with no tips. Wages are considerably higher (so is cost of living however.)
That line caught me off guard. In New Jersey they do charge sales tax. All contractors (plumbers, remodelers, electricians)are required to charge and file sales tax on services that are done as maintenance.

There is something called "exempt capital improvements" and they do not get taxed. Basically, new kitchen remodel doesn't get taxed, but fixing a broken faucet does. Repair a cracked bathtub? Taxed. Rip it out and remodel the bathroom? No tax.

It sounds like NJ isn't encouraging conservation, but rather more consumption. This is backwards, IMHO.