Business owners react to Governor Jindal's proposed tax changes

BATON ROUGE, LA (WAFB) - Scott Reeves has owned his landscaping business for 19 years. Under Governor Bobby Jindal's proposed tax plan, what customers pay for Reeves services and thousands others, would be subject to a tax hike.

"Keeping my clientele and not losing any work. That would be my concern is to maintain integrity of my company," said Reeves.

The services taxed are too many to name, but would affect residents across the state.

Examples facing a tax hike on services would range from haircuts, to drag racing, to a brake job on a vehicle. The idea being the consumer decides what services to spend and ultimately get taxed on.

"Whenever you put a new cost on transactions you could have an impact," said Robert Scott, President of the Public Affairs Research Council.

Scott adds the ultimate burden under the proposed plan will fall on businesses as opposed to the consumer.

"It's going to shift more towards businesses and I think what you'll see is that almost and industry by industry and sometimes business by business comparison you'll see different impacts. It's not going to be evenly shared by all businesses," said Scott.

Tax distribution is a major concern for Larry Douglas of Xtreme Cleaners, who would be affected a number of ways offering janitorial and toxic material cleanup.

"As a business if you can't get it absorbed then it's going to affect us and our pricing and such which will lead to increase pricing," said Douglas.

That is a scenario that Reeves says he will be watching closely from here on out.

"Not crazy about the idea but not a whole lot I can do about it you know."

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