Contact Center Solutions Industry News

TMCNet: Business balks at new taxes: Groups fear budget's $1B in levies will hurt state [Boston Herald]

[June 20, 2009]

Business balks at new taxes: Groups fear budget's $1B in levies will hurt state [Boston Herald]

(Boston Herald (MA) Via Acquire Media NewsEdge) Jun. 20--Business groups yesterday were fuming at $1 billion in new proposed state taxes they said will hurt retailers, liquor store owners, hoteliers and telecommunications firms across Massachusetts.

Lawmakers put the finishing touches on a $27.4 billion budget that slashed funds for programs and sharply cut aid to cities and towns -- in addition to raising taxes -- to balance a budget badly beaten up by the recession.

Legislative leaders said they were making difficult across-the-board decisions during tough financial times.

But business groups yesterday said the tax increases may end up hurting the state more than they help.

"It's going to divert billions of dollars in (retail sales) to both the Internet and to New Hampshire," Jon Hurst, president of the Retailers Association of Massachusetts, said of the move to raise the state sales tax to 6.25 percent from 5 percent. Lawmakers say the increase, which also applies to the state meals tax, would raise about $900 million.

Thousands of local retail jobs could be lost as a result of the 25 percent boost in the sales tax, said Hurst.

The budget also eliminates a sales-tax exemption on the sale of alcohol at retail stores, raising another $78 million for the state.

Peter Christie, president of the Massachusetts Restaurant Association, said his group is concerned about a separate measure that would allow cities and towns to boost the meals tax by another .75 percent.

That move opens the door for future increases in the meals tax at the local level, he said.

Communities were also given authority to raise local hotel taxes by an additional 2 percent, to as high as 6 percent.

Andrew Reinsdorf, vice president of government affairs for DirecTV, said his firm is disappointed that the budget includes a new 5 percent tax on satellite TV services. Reinsdorf said it's the equivalent of "taxing the air," though cable companies said it was a matter of fairness because local communities charge them 5 percent franchise fees.

Business groups were also upset that lawmakers dipped into the Workforce Training Fund, taking out $11 million for general budget purposes. Employers pay about $7 a year per worker into the fund designed for job training programs.

"They're turning it into a broad-based tax," said Andre Mayer, economic director at the Associated Industries of Massachusetts.

jfitz@bostonherald.com

[ Back To Contact Center Solutions Homepage's Homepage ]


Related Contact Center Solutions Articles
[ View all Contact Center Solutions Articles ]

Socialize with us

FREE Contact Center Solutions eNewsletter

Click here to receive your targeted Contact Center Solutions Community eNewsletter.[Subscribe Now]

Industry News

Featured Resources

Contact Center Solutions Glossary of Terms

Press Releases

About the Contact Center Solutions Community

    Welcome to the Contact Center Solutions Community The Contact Center Solutions Global Online Community, Sponsored by Interactive Intelligence, is designed to serve as the industry's premier resource for information and research on Contact Center Solutions technology and deployment strategies.