The Black Friday Mass Exodus

How’s that 6.25% sales tax looking now?

Massachusetts’ loss is Juliana Aquino’s gain. The 27-year-old mother of two could have done her Black Friday shopping at the Wal-Mart Supercenter in Methuen, where she lives. Instead, she made a 15-minute trek into New Hampshire, where there is no such thing as a sales tax.

“I come here all the time, even though there’s one closer,’’ Aquino said at 5 a.m. yesterday, pushing a shopping cart loaded with four flat-screen TVs. “I come up here even to buy groceries.’’

Massachusetts shoppers are fleeing the state’s rising sales tax in droves and shopping in New Hampshire. Fueled by necessity – and in some cases anger – customers said they were heading over the border to save money and score deals. Cars with Massachusetts license plates clogged the roads and lots across Salem. And through the early evening yesterday, the Mall at Rockingham Park in Salem and Pheasant Lane Mall in Nashua – both just a few miles over the border – reported spikes in traffic over last year, according to Laurel Sibert, a spokeswoman for Simon Malls, which runs both shopping centers.

“The New Hampshire malls have definitely benefited from the sales tax increase in Massachusetts,’’ Sibert said.

No surprises here… the reason why Black Friday is such a big hit with shoppers is because prices are lower; why can’t Beacon Hill figure this out?

Bob Bliss, a spokesman for the Massachusetts Department of Revenue, said in an August interview with the Globe that the net revenue gains from the sales tax hike outweigh the $48 million in expected losses from sales diverted to New Hampshire, the Internet, or reduced demand. Officials at the Massachusetts Department of Revenue could not confirm projected losses in tax revenue from people going to New Hampshire yesterday. But a recent report by the department showed that Massachusetts’ tax revenues for the first half of November totaled $41 million, equal to collections over the same period last year.

So long as there is still a majority of Massachusetts residents being screwed by the increase in the sales tax, they are still happy. Thanks a lot.

Anyone who can, keep sticking it to them. Cross the border and free yourself of the overbearing tax burden that has been bestowed upon us by the same elected officials you keep voting for.

#4

Congratulations all around…Massachusetts is ranked fourth in stimulus spending.

Massachusetts is ranked fourth in the nation when it comes to spending federal stimulus money.

State officials overseeing the stimulus program in Massachusetts said the state has been awarded $3.3 billion in federal funds and has already spent about $1.5 billion on transportation, clean energy, health and human services and education.

The money has also been used to stave off even deeper budget cuts, although state lawmakers, including Senate President Therese Murray, have warned that next year’s budget deliberations could be even tougher as stimulus funding dries up.

Also Thursday, Gov. Deval Patrick announced 75 communities will receive $40 million in federal community development grants — including $9 million in stimulus funds.

So what did we get for that money? So far, we have seen roads resurfaced that didn’t need it. We’ve seen road signs that were perfectly fine get replaced. And the sales tax went up.

Awesome! Hip hip hurray for being #4!

Suck On This One, Deval

John Lynch, the governor of New Hampshire, has signed a bill that would keep New Hampshire retailers from becoming sales tax collectors for Massachusetts and other states.

New Hampshire doesn’t have a general sales tax, a selling point it uses to attract out-of-state retail dollars. Lynch said today the new law will protect the state’s businesses and will help to strengthen our its economy.

Retailers wouldn’t have to provide sales information to out-of-state tax collectors. The other state would have to prove a good or service bought in New Hampshire is used, stored or consumed in the other state.

The bill was filed in response to action Massachusetts took against a Connecticut-based tire store chain. 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.

I guess they’ll just raise taxes to get the money…

The Common Wealth of Taxachusetts

And off we go down the path of tax hikes and toll hikes and falling short of making the necessary reforms to keep those hikes from happening.

Bay State consumers, already hard-pressed by a slumping economy, will be slapped with a 25 percent sales tax hike and nearly $1 billion in total tax increases Aug. 1, Gov. Deval Patrick said yesterday after signing a massive transportation reform bill.

Patrick had vowed to veto the sales tax boost if lawmakers didn’t enact transportation, pension and ethics reforms – but all three measures passed.

“I could not support a sales tax increase and ask people to pay for the status quo,” Patrick said in a statement. “Because of (the reforms), I will approve the new revenues we need to bring our budget into balance, offset the need for even more difficult cuts and expand opportunity throughout the commonwealth.”

The transportation measure also means an unpopular toll hike – scheduled take effect July 1 – will likely be averted. The Massachusetts Turnpike Authority board is meeting Monday.

I am not convinced, not in the slightest, that all possible options were considered to avoid increasing taxes. When times are tight for the rest of us, we have to cut our spending. Why can’t the state? I know too many people that have to endure pay cuts in addition to their own spending cuts and times are still rough. I know too many people that have become unemployed in the last year who will also bear the brunt of tax increases at the worst possible time. If they think the state has it rough, as around, they don’t have it so bad.

If someone can explain to me why perfectly good roads are getting repaved and perfectly good highway signs are getting replaced while taxes are being raised, then perhaps you have a shot of convincing me that the hikes are necessary. But I doubt it.

We’re all tired of the incessant rain that has been falling on the Commonwealth for weeks–but there is always hope in knowing that there is sunshine in our future…at least with regards to the weather forecast. As far as the forecast for the economy of the Commonwealth–I see that dreary days well into our future.

Remind me again, why do I bother to stay in Massachusetts?

Latest Budget Includes Taxes, Not Reforms

The budget unveiled by our elected officials on Beacon Hill still lacks in the reform department.

Beacon Hill lawmakers last night unveiled a $27.4 billion budget that hikes taxes nearly $1 billion while slashing aid to cities and towns.

The spending blueprint raises the sales and meals taxes from 5 percent to 6.25 percent, and ends the sales tax exemption on booze bought in package stores, soaking taxpayers for an estimated $860 million.

Cities and towns would also be able to raise hotel and meals taxes, expected to cost taxpayers another $95 million.

Democrats who control the budget-writing committees noted that they cut $700 million in spending.

“This reflects the reality we’re in,” said Rep. Charles Murphy (D-Burlington).

But House Republican Leader Rep. Brad Jones said the budget would whack struggling families.

“The fact of the matter is, I think this budget will have a heavy dose of taxes, obviously some serious cuts and very little reform,” Jones said.

The spending cuts and tax hikes come as the state faces a $3 billion dropoff in tax revenue.

Some of the budgets provisions include:

• Cut Quinn Bill education funding for current police officers to $10 million, while eliminating them entirely for new officers
• Force state workers to pay as much as 25 percent of their health-care premiums – a hike of at least 5 percent
• Steer $275 million to transportation funding to stave off Pike toll hikes and MBTA fare increases.

How about we force state workers to pay as much as 50%, as many of us in the private sector do. Sorry, but an increase of 5% to their share of their health care pales in comparison to the real world and we are going through.

$275 million to stave off hikes in the Pike tolls and MBTA fares? Will they guarantee that the tolls and fares can’t go up? Sorry, but I’d bet good money that even with $275 million to “stave off” those increase, they will come in short order.

Whatever the budget proposes, I am sure more could be done–much more–they just won’t. Until Beacon Hill takes the idea of reform seriously, we will be forced to endure tax increases on top of cuts to services. That is inexcusable.