This article from USA Today outlines the problems that states are having keeping up with an economy that is ever shifting from industrial and products based to technological and service based. States are running into resistance as they attempt to implement new technology taxes and service taxes.
This resistance is best illuminated by the backlash the Massachusetts legislature experienced after it passed a sales tax on tech services. The 6.25 percent tax was designed to pay for roads, subways, buses and bridges. But after it passed the tech industry heavily lobbied, and the tax was repealed.
The article also points out that most states do not tax services, and that the taxation of consumer goods can only go so far.
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