STATE REP CANDIDATE GEORGE BOAG PROPOSES CUTTING THE SALES TAX TO 3%

Is this a winning issue? (0.00 / 0)

How does a reduction in the sales tax to 3% help you get elected?

I ask because it is an issue that is not going to go anywhere this fall and here is why I think this is so:

1) Its not on the ballot so the only way to get the reduction in place would be to have the Legislature pass it with a veto proof margin since the Governor would certainly veto it.  So what is your plan to get it passed if elected?

2) The MBTA is struggling under an operating deficit that will take significant reductions in services and increases in fares to bring it into balance.  It appears as though the Governor and others are using this "crisis" in the MBTA budget to launch another attempt to increase the gas tax.  Since the MBTA gets 20% of all sales tax revenues sharply reducing the sales tax will further increase the MBTA budget gap and increase the call for more taxes to replace it.  So, if you are proposing to cut the sales tax what is your plan for funding, among other things, the MBTA which relies on sales tax revenues for its operating budget?

3) As you mentioned, the rest of the budget has been described as being in tough shape.  It has been balanced based on some pretty aggressive assumptions.  So how would you balance the budget with your sales tax cuts?  I see the comments on the study that the cut would generate more jobs and hence more tax revenue, but how solid are these numbers and how quickly would the projected jobs materialize?  Is this a one year growth so tax revenues come right away or is this a longer growth in jobs that will leave a gap in the current budget?

Garry is beatable.  Either yourself or your primary opponent has a good shot at taking the seat from her.  But is this the issue you wish to post first on?  Is it really a winning issue?  And, can you even accomplish what you propose?

I believe the ballot question and focus on 3% in 2010 was bad for the statewide candidates and resulted in a loss of focus on the issues that could have and should have resulted in one or more statewide office wins.

I wish you luck in your race and place keep posting.

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by: ConsEph @ Mon Jan 30, 2012 at 16:11:02 PM UTC

I agree having that ballot question was a negative in 2010 (0.00 / 0)

Too much time explaining how you were both for it and against it.

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by: tomasek1000 @ Mon Jan 30, 2012 at 16:49:59 PM UTC

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Can't win by being for leaving the tax at 6% (0.00 / 0)

If the incumbent is saying we should keep the tax at 6.25% then yeah, being opposed to that is a winning issue. All Republicans should be saying they will put returning the sales tax to 5%, at the very least, as a top goal of their next term.

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by: John Howard @ Mon Jan 30, 2012 at 18:00:29 PM UTC

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The challenge in 2010, and with this proposal, is the 3% (0.00 / 0)

5% is certainly workable though.

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by: tomasek1000 @ Mon Jan 30, 2012 at 18:40:04 PM UTC

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Need A Plan (0.00 / 0)

The issue in 2010 was having to explain how the cut in taxes wouldbe made up via increased revenues elsewhere or through cuts in expenditures.  It was too difficult as people were far more comfortable with 5%, 3% made the voters nervous.  So if there is to be a platform for having the tax at a level lower than 6.25%, which I agree is the direction we need to go, then the platform also has to spell out how we get there from a budgetary perspective.  We are lead at the national level by a man who campaigned on broad themes which, thankfully, he has not been able to implement.  If we are to campaign on broad tax reduction and regulatory rationalization themes then we must be able to explain how this works, how it gets put into place and how those who really need help do not get hurt.  We cannot say "trust us", voters want more.

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by: ConsEph @ Mon Jan 30, 2012 at 18:56:46 PM UTC

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On the NH border this should be an issue (0.00 / 0)

     My proposal of reducing the rate to 4.5% in year one would cost about $1.5 billion dollars. This is less than the $1.6 the governor is proposing to increase the budget. Unlike 2010 projected increases in tax collections would make this closer to revenue neutral.
    Being on the New Hampshire border I believe this is an important issue. It is true this proposal would never be enacted until there is a new governor, but this is the time to start advocating for it. The meals tax holiday had no hope of passing but the Republicans pushed it anyway. Maybe next year it can be enacted. Republicans need to push ideas that can work. Bad ideas get enacted by liberals because they keep bringing them back when they lose, we need to steal there playbook.

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by: gboag @ Mon Jan 30, 2012 at 19:24:33 PM UTC

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Need a Plan (0.00 / 0)

I agree that we need to keep pushing issues that make sense from a conservative viewpoint.  I am in favor of reducing taxes, including reducing the sales tax.  I also believe that we must have a plan when we talk about cutting the tax rate such as when you say that the drop from 6.25% to 4.5% will cost about $1.5 billion.  Your response above is that is almost as much as the increase in the Governor's FY 2013 budget.  That's correct, but what would you cut to get back in balance?  Its easy to say we will have a flat budget, but how do we get there?  What do we cut? and how do we make those custs not impact the most needy amongst us as is too often the case when politicians and government bureaucrats play budget cut roulette?  Health care is over 40% of the budget, but how much can we really cut there.  The Governor is already saying he can save $730 million in FY 2013 - how?

I also want to know how the sales tax can be such a large issue on the border when residents should be paying a use tax for the items that they buy in New Hampshire?  Does this mean that we should also be advocating for a more strict enforcement of this part of MA tax law?  I think there is a point to be made here.  Some residents are paying 0 sales tax because they do not comply with law, some may even say that they are breaking the law, and they get away with it because the Commonwealth does not enforce the law.  So let's advocate then for equal treatment of both sales and use tax law.  If there is little enforcement of the use tax, let's make the sales tax voluntary, as in not having merchants collect it at the time of purchase and have taxpayers pay it voluntarily with their state income tax return just like they do today on use taxes.  So what would your position be on either stricter enforcement of current law or changing the sales tax to be voluntary just like the use tax?

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by: ConsEph @ Mon Jan 30, 2012 at 20:12:03 PM UTC

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one aspect of a plan (4.00 / 1)

     I have ideas on reducing the budget and will discuss them as the campaign unfolds. Recent scandals have shown that corruption is siphoning off money from areas of the budget that are important such as Housing (Chelsea housing authority) and Education (Merrimack Special Education Collaborative) and Law Enforcement (Probation Department). The legislature needs to oversee these expenditures more effectively.
    The use tax is unenforceable. Even if you station police in the parking lots of stores on the border Mass residents only have to drive past exit 1 to exit 2.  

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by: gboag @ Mon Jan 30, 2012 at 20:42:42 PM UTC

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Huge issue in a border town (5.00 / 1)

Unless watching cars drive into retail shop in SO NH makes sense to you.  

"Never, never, never give up" - Winston Churchill

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by: David Whelan @ Mon Jan 30, 2012 at 23:54:52 PM UTC

Some Issue ... (0.00 / 0)

It would be more of an issue if it was framed differently but instead the status quo repeatedly labels it as a "loss" in revenue. In my book 3% of something is a whole lot better than 6 1/4% of nothing.
Christy had it right with the border cam. I live up here and Salem is bumper to bumper daily and those are all Mass plates.
As an aside it would be nice if instead of whining about high property taxes, people would take a gander at the increase in percenatges being paid on residential versus commercial space ... Why?
Because commercial space on this side of that magical line in the sand is virtualy worthless. This could change but I won't hold my breath.  

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by: nomad943 @ Tue Jan 31, 2012 at 20:58:54 PM UTC

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