Shoppers cool to a hike in retail levy
Clutching small shopping bags or just scouting out sales, shoppers in Downtown Crossing grimaced at the prospect of the state adding 1.25 percentage points to the sales tax yesterday, saying the recession was hitting consumers hard as it is.
"It's a struggle to basically survive right now," said Catherine Batista, 28. "And to raise the taxes, I believe it will only make it tougher on people."
Shop owners in the struggling retail district said many shoppers there, coming in off the T or strolling through during their lunch break, tend to be younger and have less disposable income than those in suburban malls and strips. They are the kind of shoppers for whom an extra quarter on a $20 purchase would be a frustrating sight.
"Everybody's counting pennies right now," said Craig Caplan, owner of Unique Boutiques store and pushcarts, outside of Macy's. "We've had to lower all our prices just to keep things going down here, so every dollar, every penny counts."
Business groups have said the proposed tax hike from 5 percent to 6.25 percent would deliver a harsh blow to customers and retailers. As they took their argument to the State House, most shoppers and merchants agreed it would hurt the economy, not help. But some said they would accept a higher sales tax to avoid deep cuts to state services.
Ann Langone of Dorchester said she supports a sales tax increase, as well as Governor Deval Patrick's proposals to tax the sale of candy and alcohol. But she acknowledged that an increase could change her shopping habits.
"I may buy something cheaper just to keep it within whatever [amount] I'm paying," she said.
Paul Langley of Winthrop also said he would not mind contributing a larger percent to state coffers.
"Who's going to miss that?" said Langley, who added that he was happy that a small increase in the sales tax might prevent enactment of Patrick's proposed 19-cent gas tax hike. "It's nothing. It's peanuts."
Others said a recession is exactly the wrong time to hit consumers in the pocketbook. When high school students go to the Army & Navy Store in Downtown Crossing, they generally know exactly how much they can spend, so any increase in the sales tax could mean lower sales, one employee said.
"It could be dramatic," said Bill Blocher, a clerk at the store. "The clientele in Downtown Crossing are the people who can't get to the malls or work in town. High school students come in to buy backpacks, and they pull out their change and they have it counted down to the penny."
Some shoppers said they would seriously consider heading to New Hampshire, which has no sales tax, to buy more expensive items. Standing outside while his girlfriend shopped for clothes, 25-year-old Joe Caps of Hyannis said the tax hike would add up.
"The best thing is to just go drive up to New Hampshire and do what you got to do," he said. "Everything's being affected right now. People are out of work."
Alicia Velasquez, who was standing outside the H&M store with a group of friends, agreed.
"I already have a low income, so it would make it kind of worse," said Velasquez. She said she would not be surprised if more consumers shopped in New Hampshire as a result.
John C. Drake can be reached at jdrake@globe.com. 
