| The Home Builders Association must have a lot of egg on their faces. The interest group which operates to promote the construction industry spends heavily for candidates who support their developers and Sam Rohrer is one of their favorite pols.
But Sam Rohrer's radical tax plan would tax all the labor which goes into new home construction. From the House Journal for January 28, 2008:
Mr. ROHRER. Mr. Speaker, a person who buys or builds a home today, builds a home, if it is new, pay a sales tax right now on all the material. All right? So they are already paying sales tax on that portion. Under this, they would pay sales tax on the labor part as well.
Mr. CUTLER. For the new home?
Mr. ROHRER. For a new home. For an existing home, it would not.
Mr. CUTLER. So in that case, both new homes and preconstructed homes would be taxed both on their materials as well as the value added by the service provided by the contractors. Is that correct?
Mr. ROHRER. They are already paying 6 percent on all of the materials.
Mr. CUTLER. Right. But we would now include the services that are associated with that?
Mr. ROHRER. Services would be included as well.
Not only would Rep. Rohrer now tax almost every conceivable service such as when your plumber does work, your lawn gets cut, your accountant does your taxes or a lawyer represents you, he would also tax all the labor which goes into building a new home or business.
I wonder if the Home Builders Association of Berks County understood this when they honored Rohrer by having him serve as the installation officer for their group? He also installed their Board of Directors. Do they actually comprehend how his taxing of all their work will undermine their businesses?
How stupid are these people? |