Service Tax

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In just his first week on the job, Gov. Rod Blagojevich talked about a service tax on haircuts and dry cleaning, to help the state fill a nearly five billion deficit. But Friday the governor backed away from any suggestion that he would consider such a tax.

Judging by reaction from local business owners and patrons, he made the right call.

Rockford Salon owner Howard Morris, opposes the governor's plan, saying a service tax is unfair and could drive away business.

"You might have people finding ways to avoid it. Going to Sue-Ann's basement fir a haircut or other ways," said Morris, owner of Weis-Morris Salon and Day Spa.

Salon patrons agree enough is enough.

"I'm not real enthused. I just moved here from Pennsylvania and I was shocked how much more the taxes are here. It was a real culture shock," said Anna Sheaffer-Ahearn, Weis-Morris Salon Customer.

The governor says the service industry isn't carry it's weight. But some say salon goers shouldn't have to bail out the government.

"Government leader should be the ones trimming back," said one patron.

State legislators say the tax would be expensive to implement and even harder to monitor.

"It hurts families. It's a difficult tax to collect and monitor if these individuals actually collect it and then give it to the state like they should," said Sen. Dave Syverson, (R) Rockford

Salon owners like Howard Morris applaud the governor's decision saying his customers should never have to pay a tax to get a trim.