Boston.com is the web presence of the Boston Globe, which as we all know is in BIG financial trouble. Whoever did it should never have sold the paper to the New York Times Company.
I'm not sure exactly why they are doing the Twitter thing since I think most, if not all, of the Tweets link back to Globe stories, but hey, it's progress, right?
Anyway ... here's what it says about the tax hike:
The Senate plan, which cleared the House in April, would push the sales tax from 5 percent to 6.25 percent, while generating an estimated $633 million to offset deep cuts in services for the poor, elderly, and disabled.Not sure that's fair because while New York's sales tax rate is 4%, they allow cities and counties to impose sales tax of up to 4.75%.
The Senate plan, which cleared the House in April, would push the sales tax from 5 percent to 6.25 percent, while generating an estimated $633 million to offset deep cuts in services for the poor, elderly, and disabled.
Lifting the sales tax exemption on alcohol sold at package stores would raise another $80 million for those services, senators said. Allowing cities and towns to impose a 2 percentage point increase in taxes on hotels and restaurant meals will help offset cuts in state aid to municipalities, senators said.
At 6.25 percent, Massachusetts would have the second highest sales tax rate of the six New England states plus New York. Only eight states nationwide have a higher rate.
Of the five sates bordering Massachusetts, only Rhode Island, at 7 percent, has a sales tax rate above 6.25 percent. Massachusetts, however, does not impose sales taxes on groceries, clothing under $175, and prescription drugs.If Gov. Patrick signs off on this, I can see the flow of cars travelling north to (sales tax free) New Hampshire increasing dramatically.
It's about time they taxed alcohol, though, I think, and the meals and room tax bump will certainly help here.
2 comments:
I was thrilled that the sales tax is increasing. It means that I might be able to keep my job--and that a co-worker, whose job was eliminated in prior budget discussion at the state level, may be able to keep hers. Never forget, taxes equal services.
When you really think about it, 5% is peanuts ...
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