Richard Tisei: Sales tax increase will hurt business

By SEN. RICHARD R. TISEI
Richard R. Tisei is the minority leader of the Massachusetts State Senate.
May 28, 2009 6:00 AM

Massachusetts businesses are already struggling with one of the worst economic recessions since the Great Depression. Now it looks like they're in for another blow, after the House and Senate voted to increase the state sales tax by 25 percent.

The proposal to raise the sales tax from 5 percent to 6.25 percent could not have come at a worse time. Unemployment is on the rise, many longtime businesses are either closing or moving out of state, and consumers are cutting back on discretionary spending.

Coming on the heels of a half-billion-dollar corporate tax increase in January, the sales tax proposal represents yet another setback to business owners who are trying to keep their heads above water against a rising tide of red ink and declining sales. Increasing the sales tax practically guarantees consumers will head to New Hampshire or use the Internet to avoid paying the tax.

The National Federation of Independent Businesses, the Retailers Association of Massachusetts, and many other business organizations have come out strongly against the sales tax increase, saying it will hurt employers, particularly small "mom and pop" operations. Those concerns are reinforced by an April 2009 Beacon Hill Institute analysis, which warns that "an increase would ripple through the state's economy, destroying jobs and income, and shifting sales out of state, all the while making the state less competitive."

A look at the monthly Business Confidence Index compiled by Associated Industries of Massachusetts (AIM) shows that business confidence in the commonwealth remains at historically low levels. The April survey score of 35.4 is up slightly from the all-time low score of 33.3 recorded in February, but far short of the 50.1 registered in April of last year.

In a recent survey of its members, AIM found that 42 percent had reduced their employee work hours, and 46 percent had already laid off workers or were preparing to do so. Fifty-five percent of the companies surveyed had frozen salaries for 2009, while 86 percent had "altered staffing plans" — and that's without factoring in a sales tax increase.

Full column

Massachusetts Democrats hike sales tax by 25%

Will this year be different from the last 20? Will voters actually remember their mistreatment come election time?

Senate OKs 25% sales tax increase
(excerpted from the Boston Herald)

The state Senate approved a 25 percent sales tax hike last night and removed the exemption on booze, bringing recession-ravaged Bay State residents one step closer to paying more at the cash register.

The sales tax vote, approved by a veto-proof 29-to-10 margin, came after senators moved quickly to lift the sales tax exemption on alcohol in package stores, which they hope will bring in $80 million more a year for substance abuse treatment.

The speedy approval of the booze tax prompted a loud outcry from several Republicans who said they never got a chance to debate the question on the Senate floor.

“To put another tax on working people in the commonwealth of Massachusetts on top of everything else we’re doing today sends the wrong message,” said Sen. Robert Hedlund (R-Weymouth).

Out of the expected $633 million in additional sales tax collections - far less than the $900 million estimated by the House - $275 million will be dedicated to transportation. None of the money will be targeted to boost local aid in the Senate’s $26.7 billion budget.

Senate Minority Leader Richard Tisei (R-Wakefield) opposed the hikes, saying revenues won’t be as high as projected because shoppers will either slow their spending or take their business elsewhere, such as to sales-tax-free New Hampshire.

Full story

Reminder - Medford Republican City Committee meeting tonight

The Medford Republican City Committee is pleased to welcome Christy Mihos, Republican candidate for Massachusetts Governor in 2010, to speak at our next meeting, tonight, Tuesday, May 19th, at 7pm in the South Medford Fire Station.

Markey opposes troop funding, Kerry and Kennedy AWOL from Senate on early holiday

John Kerry and Ted Kennedy have apparently decided to get a head start on their Memorial Day holidays, costing the Obama administration a key appointment, and Ed Markey makes a strong, principled stand for bigger government, voting in favor of further federalizing our bloated education system, but voting against funding our troops in the field in both Afghanistan and Iraq.


Recent Senate Votes

Cloture Motion; Nomination of David Hayes to be Deputy Secretary of the Interior - Vote Rejected (57-39, 3 Not Voting)The Senate failed to get the sixty votes required to bring the nomination of David Hayes to a full vote, making him the first Obama appointee whose nomination has been stopped on the Senate floor. The nomination will likely be brought up again later in the year.

Sen. Edward Kennedy voted Not Voting......send e-mail or see bio
Sen. John Kerry voted Not Voting......send e-mail or see bio

Recent House Votes
21st Century Green High-Performing Public School Facilities Act - Vote Passed (275-155, 3 Not Voting)The House passed this bill that intends to modernize, renovate, and repair public school facilities.

Rep. Edward Markey voted YES......send e-mail or see bio

Supplemental Appropriations, FY 2009 - Vote Passed (368-60, 5 Not Voting)The House approved this bill to provide funding for the wars in Iraq and Afghanistan, security improvements in Pakistan and the national pandemic flu response.

Rep. Edward Markey voted NO

MegaVote is powered by Capitol Advantage © 2009.

Reminder - Medford Republican City Committee meeting May 19th

The Medford Republican City Committee is pleased to welcome Christy Mihos, Republican candidate for Massachusetts Governor in 2010, to speak at our next meeting. Our meeting will be held on Tuesday, May 19th, at 7pm in the South Medford Fire Station.

Somerville Congressman Capuano proposes 60 cent per gallon gas tax

Democratic Congressman Michael Capuano of Somerville recently said he's "in favor of significantly increasing the federal gas tax.”

He told the Boston Herald he supports an increase in order to fund pothole repairs and construction on unsafe bridges.

Between federal and state taxes, Massachusetts drivers are already paying 41.9 cents in tax per gallon of gasoline.

The governor’s proposed 19-cent increase to the state gas tax would means Bay State drivers would be taxed the highest in the country – at 60 cents per gallon.

Some local drivers told 22News they can’t fathom paying a higher gas tax.

“I was just getting gas and I saw the price and I couldn’t believe the fact that we still don't have the tax levied on it that we're talking about. It's gone up pretty heavily already,” Josselyn Winter of Springfield said.

Full story

Christy Mihos at this month's meeting

The Medford Republican City Committee is pleased to welcome Christy Mihos, Republican candidate for Massachusetts Governor in 2010, to speak at our next meeting. Our meeting will be held on Tuesday, May 19th, at 7pm in the South Medford Fire Station.

Also, the Stoneham Town Committee will be hosting Charlie Baker at their next meeting, this coming Thursday, May 14, at 7pm in the Stoneham Public Library. Please RSVP to Don Smith (smithdonalde@comcast.net) if you plan to attend.

May newsletter from Mark Crowley of the Medford GOP

The next regular business meeting of the Medford Republican City Committee will be at the South Medford Fire Station in the Dello Russo Room, 1 Medford Street, on Tuesday, May 19th at 7:00PM.

Party Time…

Jennifer Nassour, Chair of the Massachusetts State Republican Party, announced her choice for Executive Director on March 9th as Nicholas Connors. Mr. Connors has broad experience both in Massachusetts politics and beyond. Connors was a Staff assistant with the Cellucci Committee; a regional Director for the Bush-Cheney ’04 campaign; a Liaison for the Presidential Inaugural Committee; a White House Desk Coordinator at the Republican National Committee; and Statewide Field Director for the Healy-Hillman ’06 Campaign. Connors has also held positions in the Small Business Administration; the U.S. Department of Energy; and Dutko Worldwide a broad-based political consulting firm which has as one of its principal owners National Committeeman Ron Kauffman.

Concerned Citizens…

Committee members and friends are urged to continue to write ‘Letters to the Editor’ submitted on topics of interest and important issues of the day to the newspapers in the area. A campaign of commentary on the current administrations proposals; successes, excesses or failures is also being urged for as long as any forum is available. Published articles of interest will be brought to the attention of the members and from time to time included in our Newsletter or Blog.

Chairman’s Message…

I would like to thank all of the community residents as well as the out-of-town participants, Republicans, Democrats and others, who attended the Tax Day Tea Party held in Medford. I was impressed by the turnout and cross section of the people who showed up for our Tea Party event.

The standout was informal and light hearted and everyone seemed to enjoy the camaraderie.

In Memoriam

We regret to announce that Angelo L. Annacone, 87, a life-long resident of Medford and member of the Ward Five Committee died on March 7th. Dr. Annacone was a graduate of Boston College and Boston University. He was a mathematics professor for over 25 years at Northeastern University and William Patterson University in Wayne, New Jersey. Annacone was a member of the Small Property Owners Association in Cambridge and was a WWII veteran serving in the U.S. Navy. An expression of Sympathy was sent to the family on behalf of the City Committee.

Announcement from the Malden committee

Hello Fellow Republicans,

You are cordially invited to Here Comes Summer!, a fun afternoon fundraiser for the Massachusetts Republican House Caucus PAC. All proceeds will be donated to the 2010 reelection campaigns for our current sixteen Republican State Representatives.

This event will include a hot buffet lunch, live entertainment (see attachment) and door prizes.

State Representative Jeff Perry will be in attendance to sign copies of his book My GOP.

If you are unable to attend, please consider donating whatever you can afford to this worthy cause.

Please make your reservations before Friday May22, 2009.

If you have any questions please feel free to contact me.

Yours truly,

Barry Greenspan, Chairman
Malden Republican City Committee
(781) 605-2152