Massachusetts Sales Tax Lifted to 6.25%

There's a good chance that many of you don't care that Massachusetts is raising its sales tax from 5% to 6.25%. We're a pretty small state of almost entirely Democrats, who voted not only for Obama,but Kerry and Dukakis. In addition, raising it to 6.25% isn't much to complain about, since even with the new higher rate, MA is still below the average of the country. Heck, California just raised theirs over 10% in some districts. So why the big deal? Let me go through a couple of reasons.

2008 Question One

It's hard to imagine a populace that was more duped by their own government as the citizens of Massachusetts were in 2008. Question One was a call to eliminate the MA State Income tax. It was getting some reasonable traction, when the statements of politicians and activits started. "Now is not the time" they said, "Property Taxes will go up" they said. Then they started with the scare tactics, talking about cutting services and raising fees, to keep up. Well guess what, joke's on us. Property taxes have gone up, services have been cut, tolls have been raised and fees for everything, from licensing your dog to safety testing you car, have gone up from 10-25% each. The talk over the summer was to raise the gas tax by 19 cents -- to 39 cents a gallon, which would be the highest in the nation. Now we get a lift in the sales tax by 25% to match. Ha ha, Mass, can't fool us!

"Veto Proof" majority

Our governor, Deval Patrick, isn't a very good one. However, he was taking a pretty good stance on this one. He said that he'd veto any raise in the sales tax that wasn't coupled with reforms and other bloat cuts. This is a pretty good thing, since it's pretty clear that the Massachusetts legislature is outright stealing from us. For a long time, this was just the price of doing business in the state, but as the money dries up, this stuff starts standing out. So, right then, stop stealing from us, and we'll give you more money. Ha ha! Joke's on us again! Instead of taking their hands out of the cookie jar, they gather enough theives together to vote with them, so that Patrick's veto has no teeth. And these guys are from the same party as the governor. Evil.

Hurts people in the wrong proportion

Certain taxes simply hurt the wrong people. The cigarette and beer tax, for instance. (Here in Mass, you'd be lucky to find a pack of ciggies for less than $7.50.) Lotteries, gas taxes. They all hit the lower middle class. Those who have to drive far to work, because they can't afford to live near their office. Those that enjoy small pleasures, like having a quick cigarette with their Bud Light. Those who buy that $5 scratchie, hoping for $5,000. Sales taxes are the same way. The affluent, and even the middle-middle class, know how to not pay sales tax as often as they can. They buy online, or they go to another state. Or they buy stuff through their business and deduct it. The blue collar worker has no way to do this, so instead they pay the taxes. Why are we putting more taxes on these folks?

Hurts the border

Mass borders New Hampshire, the "Live Free or Die" state. By live free, they mean, no taxes. If you live within 10 miles of NH, it's easy now to quickly cross the border, and buy your books or your TVs. And that was for 5%. Now with the rate going up, the economics work even more in the traveller's favor. If you can save an extra $62 on your purchase, is that worth a quick trip north? How about if you live pretty close? So now imagine that you have a business that's within 5 miles of the state line. Why would anyone shop in your store? Wouldn't it be smart of them to drive 5 more minutes, and save? Again, why are we hurting small businesses?

Horrible timing

Finally, and I'm sure the state knows this and just doens't care, this is a HORRIBLE time to be taking money out of people's pockets. Sure, it's only 1.25%, but that money should be used to keep families afloat. How someone with a brain thinks the right thing to do when times are tight is to remove even more money from the people is beyond me. Are we making up for not raising taxes when times were good? Perhaps, but you can't go back in time, you have to live with what you have now. Taking from the people just won't help.

So, there you go. My state, Massachusetts, a state that is provably stealing from its people, after saying it can't do away with the income tax, is going to raise taxes on everyone, during a recession, and do it in such a way that proves they aren't interested in stopping stealing from us. Instead, they gathered a posse, and used thier numbers to ram this down our throats. I hope they all have trouble sleeping at night.

Update!

The Senate voted 29-10 to raise the state's 5 percent sales tax to 6.25 percent, generating an extra $633 million for the next fiscal year.  The vote carried by a veto-proof margin. The margin of support virtually guarantees the first increase in the sales tax since 1975.  "It's the most equitable tax proposal," said Sen. Stephen J. Buoniconti, D-West Springfield. "It gives us a chance to raise additional revenues in the fairest way possible."

"Most equitable."  Fortunately, our governor did actually couple it with some reforms as well, but the reforms it calls for are so blatant and criminal, that they would have been ashamed to not pass them.

I'm willing to bet that $633MM turns into about $400MM, due to people changing their shopping habits (online, NH, etc.)  And then we'll need another increase.