They just increased the MA sales tax to 6.25%

[Kat45]

Aaaaargh! I understand the need for new revenues for the state, but as someone who has been unemployed for five months (with no current prospects in sight), it will make things tougher. It still has to go through conference committee but it looks like it will be a done deal real soon. Sorry, no link yet; I just saw it on the 11:00 news.

[AllieB]

1. I'm not happy about it eaither, It will drive more people to buy in NH.

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3. I plan on it...

and I would urge others to do the same. Hell... if I had any organizational skills (and motivation), I'd be more than happy to start a grassroots campaign urging MA consumers to take their business there (or maybe something more low-key like a late night hit on the signs at the NH/MA border to change them to read "Welcome to TAX FREE New Hampshire" :smoke:).

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2. That's MA for you.

The state nickname should be changed from "The Bay State" to "The Tax And Spend State".

[Realityhack]

5. Last time I checked...

The overall tax rate in MA was on the low side of the national average when everything was factored in.

[Realityhack]

10. Corrected

According to this estimate we are about in the middle. Ranked 23rd. I am not entirely sure I agree with their method of calculation though.

http://www.taxfoundation.org/taxdata/show/335.html

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15. It's not just taxes...

it's the nickel and dimeing that adds insult to injury... motor vehicle excise tax, cigarette and gas tax (other states may or may not have it, but where does MA rank?), fees for services, etc, it all adds up.

[Realityhack]

19. I think they factored most of that into that particular calculation. n/t

[AllieB]

20. You can blame the fees on Romney.

They were raised during his regime.

[yy4me]

4. And still no pension reform. The state mirrors the Federal Govt.

Nothing changes except the demands upon the citizens. I know MA is broke but I think that this raise is better than raising the gas tax by 19 cents a gallon. Gas tax hurts all at once, sales tax is a little at a time.

High tickets item buyers will probably go to NH.

[Realityhack]

9. I don't think I understand...

"Gas tax hurts all at once, sales tax is a little at a time."
What do you mean by that? Gas tax is spread out across lots of purchases just like sales tax. They both suck compared to an income tax based solution.

[yy4me]

14. What I mean is the gas tax hits you at the pump, every gallon

every time you fill up. The sales tax is .0125 cents more on non food items. How often do you spend large dollars on non-food purchases or clothing purchases?. The taxable item you now pay $10.00 plus $.50 tax will now have a tax of $.625 cents. For me this would be a little easier than forking it out at the pump.

I agree with you on the income tax. That would be fairer all around. but it sounds like a dirty word to many people, it seems.

Can you explain to me what you meant when you said the Gas tax is spread across lots of purchases? I was under the impression that it was .19 cents a gallon at the pump.

[Realityhack]

18. I meant that...

what I pay a year in gas tax is spread across my various fill ups.
As for big ticket taxable items I do get a number but I know people who have less disposable income do not get as many.
I think it is stupid that people are so irrationally opposed to an income tax.

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16. Better pay with cash....

"High tickets item buyers will probably go to NH.

as much as I would advocate MA residents taking their $$$$ to NH, it's not foolproof as the state is currently in the legal stages/process of requiring NH business's that have a parent store in MA to collect sales tax from MA residents.

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21. Round two...

seems like I might be a bit premature about NH attempting to collects sales tax form MA residents...

NH House passes border sales tax bill
May 21, 2009

CONCORD, N.H. - The New Hampshire House has passed a bill intending to protect retailers from becoming tax collectors for other states.

The bill, which had passed the Senate, bars retailers from sharing sales information with out-of-state tax collectors. It was filed in response to action in Massachusetts revenue agents took against a Connecticut-based tire store chain that has stores in New Hampshire.

Massachusetts attempted to collect $108,000 in "use" taxes from Town Fair Tire for sales it made to Massachusetts customers at its New Hampshire stores.

New Hampshire does not have a general sales tax, a selling point it uses to attract out-of-state retail dollars.

The House had amended the bill, so now it returns to the Senate for final action before heading to the governor. (AP)

:rofl:

http://www.boston.com/business/ticker/2009/05/nh_house_passes.html

[Realityhack]

6. Yeah I wish they had just increased the income tax.

I know they need the revenue. And as someone who is employed I honestly wouldn't mind. I would probably pay more that way but it would be more fair.

[Kat45]

7. Definitely more fair, but people freak out over increasing it.

When people piss and moan about taxes, it's generally the income tax they're thinking of. Sales tax is a little easier for the government to get away with raising, though since we're right next door to NH, it can be a problem. Of course they've been raising all sorts of fees for quite some time; that's a lot easier to get away with. Being unemployed, a sales tax increase will be harder on me; I really don't have the money to buy much of anything right now, but some things have to be purchased at times.

[Realityhack]

8. I absolutely understand it is harder to raise...

but I still wish they had gone that direction. Personally I would not mind the increase.
I would also love to see them make the state income tax more progressive like the national income tax but that has no chance of passing either.

[Kat45]

13. Interestingly, there was also a proposal to raise the state income tax,

from 5.3% to 5.95%. It was defeated.

[Realityhack]

11. Anyone know the effective date? n/t

[Kat45]

12. Not sure, but I think it still has to go to conference committee.

Alcohol will also be subject to sales tax after this takes effect. The Senate also voted to allow cities and towns to raise hotel and meals taxes, though that hasn't gone through the House.

http://www.boston.com/news/local/massachusetts/articles/2009/05/20/senate_approves_sales_tax_hike/

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17. Prediction...

the tax increases will go through (despite a potential veto by Deval Patrick). Voters will be pissed off, a ballot initiative will be slated for 2012, it will easily pass, the legislature will over rule the wish of the voters (or maybe just make a slight change here and there)... business as usual.

[xmzx]

22. ...

I'm going to go to one of these Deval Cracktrick summer meetings and ask him if the recession is temporary. And he'll obviously say yes, and then I'll ask then why should we have a permanent solution (tax increase) to this temporary problem? It makes no sense to be stuck with this tax increase post-recession. Everyone of our representatives are hacks.