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From the Metro staff at The Boston Globe

GOP, businesses criticize plan to raise sales tax

April 27, 2009 11:46 AM Email| Comments (49)| Text size +

By Matt Viser, Globe Staff

House Republicans and business organizations this morning slammed House Speaker Robert A. DeLeo’s plan to push the state’s 5 percent sales tax to 6.25 percent, saying it would cripple businesses at a time when they are already reeling from the economic downturn.


DeLeo5.jpg.jpg
House Speaker Robert A. DeLeo

They also called on Governor Deval Patrick, who has expressed deep reservations about increasing the sales tax, to say definitively that he would veto the plan.

“I want to unequivocally and clearly ask the governor to make a definite statement today that he will veto the increase in the sales tax,” said House Minority Leader Brad Jones. “It is time for the governor of the Commonwealth to display some leadership. He doesn’t need to wait until this bill gets to his desk.”

Patrick has expressed frustration that the Legislature has avoided his proposals for smaller, more targeted tax increases.

“Make no mistake about it: This proposal doesn’t make any common sense,” said Jon Hurst, president of the Retailers Association of Massachusetts, which represents 3,100 businesses. “This is regressive. It’s going to hurt the least among us.”

Representative Brad Hill, an Ipswich Republican, showed photos of businesses in his district that have closed, displaying to reporters an image of a “Going out of Business” sign in front of a patio furniture store on Route 1.

“People can’t do business in the Commonwealth of Massachusetts,” Hill said.

Proponents for increasing taxes to alleviate some of the budget cuts are scheduled to have their own press conference early this afternoon.

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49 comments so far...
  1. Every day there is an article in the Globe about someone feeding at the public trough, double-dipping pensions, secretaries making $100K. etc.

    In the Herald Howie Carr (who I am not a fan of) wrote an intelligent article about cuts to be made. Let's start with some of his ideas instead of raising taxes again. Cuts at all levels of government.

    Posted by southietransplant April 27, 09 12:17 PM
  1. I'm a Democrat, but I have to agree with the State GOP & Businesses on this.
    Our State's Legislature is a Laughing Stock around the Nation. The citizens & especially the taxpayers of this state have been filling the Trough that feeds the greed & corruption on Beacon Hill. How did our State's Constitution allow these Bottom Feeders to continually get away with the Pocket Books & Wallets of the Homeowners & Employees of this State. We vote for tax cuts & elimination of entities & they just ignore us. If ever there was a reasonable cause for overthrowing a government, this State's Citizens have plenty of reasons

    Posted by Dave Z April 27, 09 12:22 PM
  1. 6.250% represents a 25% increase in the sales tax. Unacceptable.

    Posted by Robinhood April 27, 09 12:23 PM
  1. If revenue must be raised, this makes the most sense. Raising the income tax--instead of raising the sales tax--would reward the irresponsible consumption that drove our economy into the ditch in the first place.

    Increasing the sales tax would promote savings and a more sustainable (and responsible) lifestyle.

    Posted by Peter Marlow April 27, 09 12:27 PM
  1. Wow.. that is a great idea... people are already not spending and cutting back.. this will really get the economy going again... We all know there are other ways and we know why they are not happening!.

    Posted by Maureen Murphy April 27, 09 12:28 PM
  1. They think people will just say OK? Look what happened in the 70s and 80s when NYC made it too expensive to do business there, businesses left and the tax base crumbled, the city went broke. This will do what higher taxes always do - change behavior. New Hampshire he we come!

    Posted by JimA April 27, 09 12:29 PM
  1. No new taxes until every political hack holding a "payback" job or abusing our pension system has been routed and guys like Tom Finneran, Sal DiMasi, Billy Bulger et al are sent to jail for raping the voters of this state.

    The voters of this state are idiots.

    Posted by Calypso53 April 27, 09 12:30 PM
  1. back to NH for my shopping needs

    Posted by dave April 27, 09 12:32 PM
  1. Raising the Sales Tax will cripple business? True, but let's not forget the impact on taxpayers. The unemployment rate is at an all-time high, those of us still working did not get a raise this year or even had a reduction in pay. Raising taxes is not the answer - cutting waste is. There's a story in the Globe today about a former BRA executive who is receiving a $97k pension who also gets $162k a year as a consultant working 25 hours a week. (Where can i get a job like that?) Yes, it's the City of Boston, but if this nonsense is going on in the City government I guarantee the same silliness goes on in State Government.

    Posted by Ed April 27, 09 12:35 PM
  1. I would rather they raise the sales tax vs. raising the gas tax because I drive to NH to make any large purchases.

    Posted by Barry Markham April 27, 09 12:37 PM
  1. This state is full I losers. When will these zeroes be voted out.

    Posted by Pauljmc April 27, 09 12:43 PM
  1. we could raise taxes to generate revenue for badly needed public works and other projects (that will create jobs and pump money back into the economy)

    OR

    we could watch a bridge collapse into a river like they did in minneapolis.

    last time i checked, boston's got both rivers and bridges.

    Posted by db April 27, 09 12:44 PM
  1. Where are the cost controls?? Have the entire legislative and executive branches taken a 5% pay cut yet?? Has DeLeo and every other crony in the capitol eliminated two or three of their staffers yet?? Has the legislature addressed the costly giveaways like state "retirees at age 52" drawing overbloated pensions for life?? I need to see MEANINGFUL cost savings from the people who can afford it the best. Stop cutting desperately needed benefits for the poor, the elderly, and the mentally ill and start cutting off the $$ flow to the fat cats in the capitol building, and in the public employee unions. THEN when you have sliced the several billion dollars of annual waste, you can bring a potential tax increase into the conversation. NOT a minute sooner.

    Posted by WVW in West Newton April 27, 09 12:48 PM
  1. why cant the budget balanced without ANY tax increases? Massachusetts has one of the lowest increases in population since 2000. If my arithmatic is correct why is it that we need more tax money to spend if roughly the same amount of people live here each year?

    no wonder why so many people aged 20-30 are fleeing the Bay State!

    Posted by Shawn April 27, 09 12:50 PM
  1. Didn't you dumb voters not vote down the income tax because you were worried our wonderful government would raise taxes? Well guess what, they are doing it anyways!! Way to go! MA has the most stupid voters.

    Posted by BostonResident April 27, 09 12:51 PM
  1. You have got to be kidding me......why do I live here again?

    Posted by Semper Fi April 27, 09 12:52 PM
  1. The solution to this problem is to vote Republican and bring real competition for ideas and fear of the voters to state government.

    Sadly, Massachusetts voters are too stupid to realize this.

    Posted by MAK1 April 27, 09 12:52 PM
  1. It's impossible to reconcile the fact that every single proposal that comes out of Beacon Hill only addresses raising revenue, and NEVER cutting costs.Any reasonable person will tell you that while trying to raise revenue it only makes sense to cut costs. If these failures on Beacon Hill ever seriously looked at cutting costs, perhaps people like myself would actually consider these proposals as reasonable.

    1 party-rule = failure. Hats off to those who installed All Dems in Washington. More of the same.

    It's a complete joke.

    Posted by no April 27, 09 12:53 PM
  1. my god.. this is so depressing. I am 28 years old, I can't even afford an apartment on my own. I am STILL living at home, after moving out for a short while and then realizing that unless I have 2-3 roommates even in the suburbs, I can't make it on my own. This is ridiculous. NO ONE is looking out for us. I honestly don't remember the last time I went shopping for ANYTHING since I'm spending my money on just commuting to work alone. This is absurd.

    Posted by Jazz April 27, 09 12:53 PM
  1. 6.25 % is nothing. Quit your whining. In CA we pay 9.5%.

    Posted by Joe April 27, 09 12:55 PM
  1. Why not raise the meal tax to 7% instead. Those affording the higher end restaurants can well afford the additional2% and for those who eat at value restaurants or fast food chains won't be hurt by an additional 2%. It will not cause people to drive to a border state to save on meal tax and doubtful people will eat out less over 2%.
    And something needs to be done about the BRA retiree who is collecting and still on the payroll with full salary and a 3 day work week, if we can even believe that. Until the blatant waste and dead wood is cleared, no increase in taxes should be up for a vote. Period.

    Posted by A Dingo Ate My Baby April 27, 09 12:56 PM
  1. badly needed public works projects can be funded by cutting pensions for state workers.

    Posted by Homer April 27, 09 12:57 PM
  1. If revenue must be raised, this makes the most sense. Raising the income tax--instead of raising the sales tax--would reward the irresponsible consumption that drove our economy into the ditch in the first place.

    Increasing the sales tax would promote savings and a more sustainable (and responsible) lifestyle.

    Posted by Peter Marlow April 27, 09 12:57 PM
  1. Washington State has 8% sales tax, has had it for years. Seattle adds another 0.2%. It hasn't crippled them.

    Posted by Fran Taylor April 27, 09 12:58 PM
  1. Isn't it funny how they're arguing over which tax to raise -- DURING A RECESSION! What idiots we have in government!

    Posted by Frank Kelly April 27, 09 12:59 PM
  1. Nice comment Joe, in CA 9.5% and you are broke, so that solution appears to be working well.

    Posted by Gus April 27, 09 01:00 PM
  1. I'm NH born and raised, tried living in MA for 6 months to be closer to work...well, I am not gladder every day I moved back to NH last month. My commute is twice as long, but at the end of every day I'm in NH, which makes it all worth it. Cheaper, cleaner, safer, friendlier....what's not to like?

    Posted by DrAJA April 27, 09 01:01 PM
  1. Will the new sales tax rate apply to Deval's neighbor with the FAKE 120K per state job?

    Posted by Milton Fool April 27, 09 01:04 PM
  1. If they raise the sales tax to 6.25% then I am off to FLA where the rate is the same but there is no income tax. Pretty soon the only people that will be living here will be the state retirees, they can afford to stay.

    Posted by Buffy Morgan April 27, 09 01:08 PM
  1. KUT MY TACKSEZ! THANG CUE.

    Posted by JOE THUH PLUMMIR April 27, 09 01:11 PM
  1. "6.25 % is nothing. Quit your whining. In CA we pay 9.5%."

    Exactly why we want to stop it now, so we don't get to 9.5%.

    Posted by Craig April 27, 09 01:11 PM
  1. People need to understand that taxpayers DO NOT pay for state worker pensions. State workers pay into the system and then receive the money back after retirement. The abuses are an outrage for honest state workers. For everyone else, your attention is being diverted from much more pressing issues! Doesnt this sound familiar (unnecessary war, bonuses versus bailouts, etc)?

    Posted by solami April 27, 09 01:14 PM
  1. So the headline is this:

    "GOP, businesses criticize plan to raise sales tax"

    Those evil GOPers and Business'.

    Now here is the breaking news:

    "BREAKING NEWS 1:08 PM
    Patrick threatens to veto sales tax"

    So by the title of this column that must mean the guy Patrick is either a businessman or a GOPer.


    Posted by Craig April 27, 09 01:15 PM
  1. How could anyone even think about raising sales tax at a time like this? Hard working people are losing their homes, jobs and even their retirement accounts! How much more do these politicians think we can cut back on? Do they just want us to be poor to make themselves feel more powerful? Are they trying to create a TWO class society? Filthy rich and poor as dirt?

    It's time for a revolution my friends.

    ...and Joe, who cares about CA! Your state is full of freaks and wackos! You have always tried to be like us and your trends are like 5 years behind us. Boston is the cradle of the country. This is the place where we first took a stand against taxes in the first place! What has happened here?

    Posted by MP April 27, 09 01:18 PM
  1. you got what you deserve,you keep voting these self serving hacks into office,they have been robbing you blind for fifty years,ever since you became a one party state,yet you still reelect them,and to top it off you elected a governor who has never had a real job.

    Posted by frank April 27, 09 01:18 PM
  1. "Increasing the sales tax would promote savings and a more sustainable (and responsible) lifestyle."

    Right. Except on the part of the government. Why be more resposible and sustainable if you got this kind of never ending source of funds? Just raise the taxes and you are covered.

    Posted by Alex April 27, 09 01:25 PM
  1. As has been said, eliminate the state and city pension abuses then I'll be all for a hike in the sales tax if we're still not making it, as of right now I say no way.

    Posted by Dehumanist April 27, 09 01:27 PM
  1. WHERE DO I START ABOUT ALL THIS FRUSTRATION WE VOTE THE TAX DOWN AND THEY IGNORE US PUT IT TO A VOTE BUT DONT TELL THE DUMB VOTERS LOOK AT ALL THE GREAT IDEAS THESE DUMB HACKS CONJURED UP TAX ON CANDY OF ALL ITEMS CROSS EYED MARY STEALING CANDY FROM A LAUGHING BABYS MOUTH TOLLS LETS SEE BEER AND PRETSELES THEN YOU LOCAL TOWNS GO UP EVERY HEAR ME EVEY YEAR ON PROPERTY TAXES AND WE CURSE BUSH WELL ITS NOT JUST REPUBLICANS ITE DUMB DEMOCRATS IN MASS AS WELL

    Posted by mojo52 April 27, 09 01:27 PM
  1. I love the breaking news story on the front page right now: "Patrick Threatens to Veto Sales Tax" in big letters, then in regular text, something about how the extra money would be spent. Translation: Gov. Patrick will veto the sales hike unless he gets to decide how to spend it. Disgusting. More taxes, seriously? No accountability? Where's the outrage, people?

    Posted by FJ April 27, 09 01:31 PM
  1. Most Californians live hundreds of miles from the nearest state border, they don't have a New Hampshire close by. Raising the sales tax here would never generate as much revenue as the experts always "project" - it's always going to depress sales in general.

    Patrick has been very shaky lately and hasn't stuck consistently with the "reform before revenue" mantra, but for once he's done the right thing by steering the legislature away from this.

    Posted by smozo April 27, 09 01:42 PM
  1. solami, I understand and agree with you to a point. But keep in mind it is tax payer dollars that pay those salaries to begin with, and that there are MANY loopholes in the pension system which allow people to collect much more than they put in to the fund, and guarantees a certain amount to too many. Additionally, agencies like the MBTA allow retirement with full pension after 23 years of service regardless of age. Then some of these folks are hired back as "contracters", thus getting paid both from the pension fund and from the taxpayers. Between the guarantees and the double dippers, the system costs.

    Posted by just a thought April 27, 09 02:18 PM
  1. Whats funny is that everyone seems to agree that raising the sales tax is a bad idea, yet we keep voting for democrats. I am not a republican, but until we make our elections competitive again, why should any of the politicians on beacon hill care what we think.

    Posted by Michael S. April 27, 09 02:32 PM
  1. Meals taxes are much higher in all of the surronding states . NH is 8 percent , Vermont is 9 percent. we are idiots to raise the sales taxes which put the burden on the residents. Meals taxes will be paid in a large part by the tourist an buisness traveller Look at what you pay to other states when you travel.
    Wake up

    Posted by bob April 27, 09 03:25 PM
  1. Calypso53 - My sentiments exactly! The voters of this state are IDIOTS.

    Joe from Cal. Look where the 9.25% sales tax has got your state. How many billions is CA in the hole. CA is a perfect example of how not to run a state.

    Posted by chuck April 27, 09 03:29 PM
  1. solami, if you think that you taxpayers don't pay for state pensions you are delusional.....I've done the math and funding a pension over 30 years even at 11% for 30 years of retirement just does not work......one of the bigger lies that the public unions put out there

    Posted by inconvenient facts April 27, 09 04:25 PM
  1. I can't understand why the gas tax is dead. There should be some combo of the .25 gas tax for the roads and a 5 year income tax hike for the rest of general rev. Then we'll bring back the Weld admin to make sure that the tax is temporary, like he did last time.

    Posted by Rwm April 27, 09 04:42 PM
  1. I'm not a Republican, but I'd oppose this tax plan on the grounds that it is regressive. I assume that is why Patrick opposes it, too.

    I don't like paying taxes anymore than anyone else, but I like many of the things my taxes do (or should) pay for -- roads, schools, taking care of people in need. So I don't "want" taxes raised the way I "want" a chocolate milk shake. Rather, I "want" taxes raised the way I "want" a broken bone reset and put in a cast.

    Posted by fnd_in_ma April 27, 09 04:54 PM
  1. ELIMINATE the Sales Tax.

    Mass residents would stop travelling to NH to spend their money. RI, ME, CT, NY, VT residents would START travelling TO Mass instead.

    Mass would see such an increase in Income and Corporate Taxes, that we'd end up with MORE Revenue that the Sales Tax brings in.

    Posted by SalemCat April 28, 09 09:53 AM
  1. We DON'T NEED higher taxes (of any kind) ... we NEED more RESPONSIBLE government! What we have ISN'T govt. of the people, or by the people, and definitely not for the people!
    * Stop the insanely generous state pensions ... Social Security recipients don't get 80% of their wages!
    * Stop the insanely early retirement age for state workers ... it needs to be AT LEAST 62 (for partial benefits) & 66 (for full benefits)!!
    * Stop the insanely generous calculations for state pensions ... use the top 35 years (like Soc Sec) instead of the top 3 years!!

    Posted by dmereh April 28, 09 03:07 PM
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