What'll they Tax Next?

Given the current economic crisis many state governments are trying to find new goods and services to tax. In an effort to generate more tax revenue they are taxing everything from children's entertainment in Maine to haircut's in Michigan and Nebraska.  CNN Money has all the new taxes highlighted. According to Kim Rueben, a senior fellow at the Urban Institute "These states are expanding the services they're taxing, and a haircut is considered personal grooming and can be seen as a luxury item, and while you might not think a haircut is a luxury item, you could always do it cheaper or at home." Let's apply some basic micro analysis to the situation. If Kim Rueben is correct and hair cuts are a "luxury good" then their demand is probably relatively elastic (consumers will be sensative to price changes including a tax).  That means that producers will bear the burden of this tax and consumers will look for alternatives.  Ultimately, that could hurt the haircutting industry and may not be a good source of potential tax revenue.  The questions are do the state officials trying to pass this tax understand this, do they care who actually pays, and are they thinking about whether the tax will be effective at generating revenue?  My guess, look for people in Michigan and Nebraska to strart wearing their hair long.