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Saturday, August 14, 2010

That's gotta hurt

As Massachusetts citizens rush to buy things on their one tax-free weekend, it must irritate them to have the governor of New Hampshire taunt them as to how his citizens get to buy tax-free every day.
Since Patrick signed a 25-percent sales tax boost into law last year, the Bay State is grabbing $900 million more annually from shoppers’ pockets amid a sputtering economic recovery.

Lynch scoffed at the tax-free weekend at a press conference only a mile from the Massachusetts border - pointing out that Granite Staters shop tax-free every day, while “Taxachusetts” residents get only 48 hours.

“Come on up anytime,” Lynch urged tax-weary Bay Staters. “We have sales-tax-free shopping year-round.”


jeffsters said...

I think they are already doing their shopping up there when they can.

Freeven said...

Lynch is engaging in some political slight of hand here. He can brag about NH's sales-tax-free shopping all he wants, but his recent increase in small business taxes has the same effect. The increase in the cost of doing business gets passed onto the consumer, and a tax is a tax is a tax. Not to mention the negative impact on the job market, as 97% of NH's employers are small businesses.

Pat Patterson said...

But by eliminating sales tax NH has increased sales. The businesses may have to pay more as both a percentage and as a lump sum but they will have higher sales. It's better, when your costs are basically fixed except for inventory as a percentage, to have a profit of 5% on a million dollars in sales than 6% on half a million.

Freeven said...

Do your numbers have any basis in reality or did you pull them out of the air? They sure don't jive with what is being reported by papers across the state. Small businesses benefit from the state having no sales tax only if it allows them to keep their prices lower than the competition. Lynch has raised taxes on NH small businesses by 13.5% and is pushing for increased sales tax on targeted products (not all NH products are sales-tax free). So while he's trying to get reelected by touting NH's lack of sales tax, he's actively working to increase taxes in other areas which directly affect prices (despite a pledge not to raise taxes or fees in the state). "Hidden" taxes hurt the economy and cost jobs the same way visible ones do. NH already has 16% of its work force traveling out of state to find employment.