Dems Want 1% Increase in State Sales Tax – Its “ONLY” 1 penny on the dollar!

(1 cent increase equals a 20% increase! – promoted by Cool Cal)…

Small-town mayors, liberal legislators, and deeply worried advocates for the poor launched impassioned campaigns yesterday to increase the Massachusetts sales tax to offset severe budget cuts, but business groups and residents immediately warned that Beacon Hill leaders will pay politically if they raise taxes in the midst of a historic recession.

While legislative leaders remained noncommittal, nearly three dozen House Democrats met behind closed doors yesterday to hammer out budget amendments, with consensus beginning to develop around pushing a sales tax hike and new local-option taxes. The tactic most commonly bandied about has been increasing the state’s 5 percent sales tax to 6 percent. Resistance to the idea was swift and strong.

“It would be disastrous for the retail sector,” said David Didriksen, who owns Willow Books & Café in Acton and is a member of the board of directors of the Retailers Association of Massachusetts. “To me that’s the worst idea since New Coke. At the very time we need to have the least number of hurdles we can, they’re going to drive consumers to New Hampshire and the Web.” New Hampshire has no sales tax; sales taxes are not collected on most Internet sales.

The Beacon Hill Institute released a study yesterday suggesting that increasing the sales tax would cause consumers to spend less money, resulting in 10,182 job losses and $41.3 million less in spending by businesses.…

About Brock N. Cordeiro

  • Karl Marx

    the sales tax proposal “An Act to Stimulate the New Hampshire Economy.” The sales tax hike won’t bring in as much money as supporters maintain; it will destroy small business in Massachusetts. And a sales tax with any rate (even with exceptions for necessities) is NOT progressive. Cut spending. Reform before Revenue. Get it Ruth?

  • Jeanne

    as was pointed out to me in another thread.  I’m surprised liberals are arguing for it, given that it’s most harmful to the poor and families.

    Props to the guy from Acton for saying “worse than New Coke.”  Nice.  The idea is that bad.

  • I find myself looking this summer to buy a house closer to NH.

    Think I’m gonna buy any more expensive items in MA?  Don’t count on it.

  • I don’t want to see any taxes go up either (especially at the state level), but it would be great to see some of our legislators identify some alternative “cost efficiency” measures that could be adopted in lieu of massive cuts to local aid.

  • Vote3rdpartynow

    Every year the Massachusetts state legislature votes to allow a sales tax holiday in the fall.  This year members of the legislature made comments like this:

    Rep. John Binienda, a Democrat from Worcester who serves as co-chair of the Joint Committee on Revenue, told his colleagues: “We feel we can absorb that loss of roughly $16 million so that the people of the commonwealth will get a shot in the arm and be able to go out and do back-to-school shopping, and the retailer will get an influx of money through the increased sales they will receive.’

    So Democrats sometimes get it.  They realize that a tax cut leads to improved retailer sales and savings to the residents of Massachusetts.  So why do they think a tax increase won’t have the opposite effect?  Lower the tax and its good for shoppers and businesses – raise the tax and it is bad for shoppers and businesses.  That isn’t so hard to figure out…..

    Even Rhode Island democrats understand the issue – sometimes.  Representative John Edwards (No, not the scumbag Presidential candidate) introduced legislation to LOWER Rhode Islands sales tax to be more competitive with surrounding states.

    In an effort to make Rhode Island more competitive with neighboring states, Rep. John G. Edwards (D-Dist. 70, Tiverton, Portsmouth) has introduced legislation to lower the state sales tax.

    The bill (2009-H5464) would lower Rhode Island’s sales tax from the current seven percent to four percent, while adding and removing items to match those that are taxed in Massachusetts.

    For example, collectible coins and florist supplies, which are presently taxed by Massachusetts and not by Rhode Island, would be taxed under the proposal.

    Representative Edwards said the high tax rate can hurt businesses in Rhode Island, particularly since the state is so small that it is very easy for shoppers to take their business to other states. Massachusetts’ sales tax is 5 percent, while Connecticut charges 6 percent. New Hampshire has no sales tax at all.

    “This legislation would stem the tide of consumers who leave Rhode Island to shop in Massachusetts just to save on the sales tax,” said Representative Edwards. “We must start thinking of ways to make our state more competitive instead of accepting the status quo and allowing Massachusetts and Connecticut to reap the additional sales.”

    Under the legislation, the reduction to a four-percent tax rate would begin on July 1, 2009.

    “This would be a step in the right direction toward making Rhode Island more competitive with our neighbors,” said Representative Edwards. “As someone who represents a town that borders Massachusetts, this is a very important issue to me and my constituents.”

    So Democrat legislators in RI understand that they must be competitive with surrounding states, but Devalocrats from Taxachusetts don’t get it.  In fact, if Massachusetts raises the sales tax it will now be cheaper to go to New Hampshire AND Rhode Island it appears.

    “Yes we tax Can”

  • I had a corn tortilla chip today….I’m on government welfare according to Fetus Gravy…


        I have potential customers coming into my store asking when the hoped for Sales Tax Holiday will be (again?) this year when wanting to make some big-ticket purchases.  Yet, now we have the Democrat Speaker of the House being “open minded” to hiking the sales tax.  Yeah, thanks!  

    House Speaker Robert A. DeLeo said yesterday that he is “open-minded” about raising the Massachusetts sales tax to help the state cope with a historic economic downturn, a sign that representatives will seriously entertain at least a one-cent hike in the sales tax in an upcoming budget debate.

    “I’m open-minded towards it, as I am with the others,” DeLeo told reporters yesterday, after being asked how he felt about increasing the sales tax.

    DeLeo said the only tax increase he has ruled out is a boost in the state income tax, an idea he called “dead on arrival.” On all other taxes, he said, “I’m willing to talk.”

    But the most vigorous debate is expected to be around a wide array of tax-raising amendments, including raising the meals tax from 5 percent to 8 percent, raising the gas tax by 25 cents-per-gallon, and increasing the state’s income tax from 5.3 percent to 6.3 percent.