Legislative fortune teller sees tax hikes and spending cuts in our future

Are we surprised? No, but stay tuned. Len Lazarick, Staff reporter for MarylandReporter.com reports that Department of Legislative Services recommends legislators consider extending Maryland's sales and use tax to include services:

"The no-growth budget for next year that legislative leaders recommended Thursday, combined with a promise of no new taxes, might soon look like a relic of the good old days if a new report from the Department of Legislative Services proves accurate. In a section of a new 246-page study of the issues facing the legislative session that begins in three weeks, budget analyst David Juppe forecasts “structural deficits” of at least $2 billion in each of the next five years. ...

Juppe gives examples of potential tax or fee increases: 'expansion of the sales tax base to services, a more progressive restructuring of the personal income tax, repeal of tax credits or improved tax compliance.'”

As this past weekend's online holiday shopping broke retail records, one wonders when state revenue collectors will target online sales originating from their jurisdictions.

Read Lazarick's entire report here...

"Results Not Typical" — Bloggers and Celebrities (and Advertisers) Must Comply with New FTC Guides

Grass roots marketing just became a little less green. The Federal Trade Commission (FTC) issued the final updated Guides Concerning the Use of Endorsements and Testimonials in Advertising. Effective December 1, 2009, the new Guides expand in scope to include advertising messages in websites, blogs, and other social media. Bloggers failing to follow the Guides could pay up to $11,000 per violation. Advertisers and agencies connected to a blogger's post may share liability. It's imperative that businesses review current marketing practices with the new Guides now. The FTC can challenge misleading and deceptive advertising anytime.

That's because the new Guides do not change the law. The Guides were developed to help advertisers and agencies determine if their advertising is deceptive under Section 5 of the FTC Act. The Guides provide principles and examples demonstrating how the FTC determines if advertising is misleading. By following the old Guides, advertisers and ad agencies could steer clear of FTC enforcement actions and the class action lawsuits and state enforcement actions that often follow. The new Guides cast a broader net, and in uncharted waters. No, the new Guides do not provide an unambiguously safe path for blogging about products. But they do reveal the types of marketing activities the FTC is targeting. Continue reading here.