Massachusetts Sales Tax Increase Will Backfire

One of the MA state senators said that a sales tax increase was a very fair way to increase taxes. He is out of touch with reality. The wealthy could care less if the sales tax is 5% or 6.25%, it has little significance to them. It does however significantly affect the average working person, the poor, and the elderly on a fixed income. It is still another financial burden to them, already trying to make ends meet.

In addition, the sales tax increase is short sighted and without regard to the strategic long term effects on state income. In the past many people from Connecticut, and other bordering states used to come to Massachusetts to shop. This will come to a screeching halt. Further, retailers were not listened to when they warned that a sales tax increase will have a major negative impact on their business. This will mean less business for them, loss of jobs, and some businesses closing or moving out of state. Please note that unemployment in the private business sector (non government jobs) is already 10% in Massachusetts. This will get worse.

Desperate to make up for lack of rational financial planning, MA state government is grasping for straws and short sighted, fueled by non strategic money grabbing from Massachusetts citizens. For the reasons stated above, this will all backfire and the net result will be less income for the state, not more.