Apr 27, 2009 12:24 pm US/Eastern
House Debates Sales Tax Hike
BOSTON (WBZ) ―
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A big vote is expected Monday on boosting the sales tax in Massachusetts.
House lawmakers will debate whether to raise the rate from 5 percent to 6.25 percent.
But the plan does not include any other tax increases.
The governor's proposed tax hikes are not included.
No gas tax increase.
No tax on candy and soda.
The house plan will not allow cities and towns to raise their own taxes.
Boosting the state sales tax to 6.25 percent would raise an estimated $900 million in revenue.
About $275 million of that would go exclusively to the state's transportation needs.
$200 million of local aid cuts would also be restored.
Just to give you an idea of what it's going to cost you, the Mass. Taxpayers Foundation estimates that a one percent increase would cost the average taxpayer $122 a year.
For a family it would be more than $300.
Gov. Deval Patrick is skeptical of a sales tax hike, but he would not say whether he would veto the proposal.
House Republicans say raising the sales tax will hurt local businesses by driving consumers to the Internet or New Hampshire, where there's no sales tax.
Opponents rallied outside the house chamber in the morning before the afternoon debate.
"It's not the right time," said state Rep. Brad Jones, a Republican from North Reading.
"Our economy is down and struggling. This is only going to be a further death knell."
Other critics say it will lead to job losses.
"You're not going to collect anywhere near that much revenue because the reality is you're going to lose important income tax revenue; you're going to lose important local commerical property tax revenue," said Jon Hurst of the Retailers Association of Mass.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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