Marblehead voters have several tough choices next week, not just to decide who will serve the town in Congress and on Beacon Hill, but whether to roll back state taxes on alcohol and almost everything else and what to do about 40B housing. 

Question 3 

The most controversial issue is Question No. 3, a proposal to reduce the sales tax from 6.25 percent. To help solve the state's budget crisis, the legislature approved an increased from 5 percent. Now proponents would like to lower the tax to 3 percent or "to the lowest level allowed by law."

As with any tax proposal, this issue has generated tremendous debate. Proponents argue that lower sales taxes will create jobs by giving every resident more spending money.

Opponents fear that such a drastic cut will force major cuts in the number of teachers, police officers, health care and other essential services, particularly when the economy is not generating sufficient revenues and the federal government is likely to send less money to states and cities.

The Alliance to Roll Back Taxes claims that the lower sales tax rate will save every taxpayer $688 a year. If that money is spent on goods and services, it would create an estimated 32,929 jobs in the state.

The Massachusetts Coalition for Our Communities, an opposing group, argues that the lower sales tax would force the state to cut its aid to towns by $2.5 billion at a time, about 16 percent of the state's discretionary spending. There is already a $2 billion deficit projected in the state's $32 billion budget.

In Marblehead, the coalition estimates that the proposed tax cut would reduce state's funding for schools and local services significantly.

Schools would take the biggest hit, losing an estimated total of more than $727,000, according to the coalition. There could be a loss of $557,000 under the Chapter 70, the state's general funding program, about $25,000 in special education funding and $145,000 in other aid to schools, it says.

The town could lose about $163,000 in local aid, according to the coalition. That would be $122,000 in general aid and $41,000 in roads and services funding, it says.

As a result, city and school officials across the state have opposed such a large decrease in the sales tax.

Many business groups, including the Associated Industries of Massachusetts, the Massachusetts High Technology Council, the Greater Boston Chamber of Commerce and the Massachusetts Business Roundtable oppose the sales tax reduction.

Proponents say those groups represent large businesses, not the "small businesses and small retailers who are the creators of new jobs.''

The Retailers Association of Massachusetts wants the sales tax returned to 5 percent, but it has stayed out of this battle.