Here we go. http://www.reflector.com/news/service-tax-prompts-discussion-32767 I am one of the few tax paying solo operators in my area. No customer will want to pay an extra 8% on top of my, what would appear to be, premium prices. I've spoken to a lot of solos in my area. What one of them said to me puts the attitude of most solo LCOs in my area into perspective. "You're insured and pay taxes? It's almost like you have a real business." I only average $39 a hour now. If I have to absorb the 8% service tax I be down at $35.88. But, I already have a hard time selling $35 jobs when everybody else only wants $20 and $25. How could I possibly hope to sell a job when the price is jacked to $37.80 and no one else raises their prices. Most of my customers think I take their checks to the bank, cash them and then don't report it. I've told them repeatedly that that's not what happens. I don't have the time or money to drive all over town to do that even if I felt like doing it.