The League of Women Voters of Maryland has long supported the raising of adequate funds to provide needed governmental services to Marylanders. We have also supported the concept of a fairer tax system. Therefore, the League somewhat reluctantly supports the proposed increase in the sales tax to 6% as long as it contains provisions which would alleviate the burden on lower-income residents. We also support the extension of the sales tax to certain services. We recognize that the sales tax generates a great deal of revenue. An increase would provide badly needed funds. Our support for an increase in the sales tax is contingent on the continued exclusion of food and medicine from the tax, an increase in the Earned Income Tax credit, and a $50 rebate for low-income taxpayers. For the same reason, we support the proposal for two sales-tax holidays for back- to-school clothing costing less than $100 per item and for the purchase of energy efficient appliances. As to extending the sales tax to certain services, the League recognizes that the service side of our economy is growing rapidly and is a virtually untapped source of revenue. While we have no comment on the particular services slated to be taxed (real property management services, and tanning, massage, physical fitness, sauna or steam bath facilities or services), we believe that extension of sales taxes to this area of the economy should be seriously considered. We hope that any expansion of the sales tax to services would not fall too heavily on the poor.