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
2015 Mustang's asphalt-peeling power goes modern The new Ford Mustang has been upgraded and updated to compete globally - but never fear, it's still a monster. More
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More
Mercedes SL65 AMG: 621 horses of topless power Turn heads as you blow by traffic in this roadster convertible from Mercedes. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.