Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

What'll they tax next?

Some states have already slapped taxes on blueberries, illegal drugs and fur clothing. But as budget shortfalls grow, state legislators are looking for even more creative ways to earn revenue.

1 of 10
BACKNEXT
A little off the top
A little off the top
Your next trip to the barber could trim a little more than usual from your paycheck, depending on where you live.

In an attempt to balance their budgets, Michigan and Nebraska are considering making you take a haircut by extending the state sales tax to include personal grooming services.

"These states are expanding the services they're taxing, and a haircut is considered personal grooming and can be seen as a luxury item," said Kim Rueben, a senior fellow at the Urban Institute. "And while you might not think a haircut is a luxury item, you could always do it cheaper or at home."

While the Nebraska state Legislature has adjourned for the year, it could be revived next year, according to Gerry Oligmueller, state budget administrator of Nebraska.
NEXT: Pulling a tax out of a hat
Email | Print | Share
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Last updated May 06 2010: 5:38 PM ET
More Galleries
Best-loved new cars of 2016 These cars are the most beloved among American drivers based on JD Power's annual survey of new vehicle buyers. More
This Indian university cranks out top-tier tech execs Many graduates from the Indian Institute of Technology have gone on to start and lead global tech companies. Here are a few of the most notable alums. More
Most valuable American car up for auction Carroll Shelby's own very first Shelby Cobra will be sold in August. It's almost certain to be the most valuable American car ever sold. More

Special Offer