State Rep: Sales and Alcohol Taxes

As a way to inform our readers about the candidates, Patch asked the two candidates for state representative five questions that focused on various topics.

How would repealing the alcohol tax and reducing the sales tax from 6.25 percent to 3 percent (Questions 1 and 3 on the ballot) affect Marblehead and its businesses? Are you for or against these provisions? 

Rep. Lori Ehrlich (D)

As the only CPA in the legislature, I understand how taxes affect us; both paying taxes as well as the critical services they provide. Lowering the sales tax to 3% will drain millions in local aid from the district leading to massive layoffs of critical public safety and education professionals.

I am in favor of a more measured approach of lowering the sales tax back to 5% when we can be certain tolls that North Shore residents pay to get into Boston will not be doubled, something that would have cost commuters $1,800 per year.

I fought to ensure that our communities and neighbors would not bear the entire financial burden for the rest of the state, something that was already voted upon by the former Massachusetts Turnpike Authority. We need to make responsible decisions that look out for the long-term interests of the state, and not make politically expedient and brash decisions that would financially cripple our cities and towns.

Dr. Kate Kozitza (R)

The most interesting part of Question 3 is that the politicians who are loudly railing against it are the very same ones who bear responsibility for it even being on the ballot. Had my opponent, along with the majority of Democrats on Beacon Hill, not shut out the voices of regular people in Massachusetts on the matter of increasing our sales tax by 25%, we would not be facing this Hobson's choice.  

Instead, Deval Patrick, who had originally promised Massachusetts change in the form of property tax relief, reneged on this promise, and then piled on by joined forces with allies like my opponent in creating an even bigger stranglehold on taxpayers. Astonishingly, they increased the sales tax rate from 5 to 6.25%.

If voters are happy with the Democrats' irresponsible decision to ignore the recession and enact legislation that has further squeezed average folks and businesses, a vote of "no" is the way to go. But a "Yes" vote will tell them that we the people will not tolerate a political bait-and-switch. For most voters, both 3% and 6.25% are untenable.  

What the voters really want is for the tax rate to be restored to 5%, which is precisely what I would make one of my first orders of business to accomplish on Beacon Hilll were I elected.  

As to Question 1, the alcohol tax as it exists is simply another example of Beacon Hill's addiction to taxes. Alcohol is already taxed once at the wholesale level, so the 6.25% amounts to double-dipping by government.

Whether people are fond of alcohol or not, this legal and profitable industry employes many folks in Massachusetts. And for every dollar in spending that is lost to New Hampshire because it boasts tax-free alcohol, we can count on that missing dollar's effect to trickle-down to business in Massachusetts.  This, of course, translates into an impact on employment in our commonwealth.  

Check back later for question 5 - where the candidates stand on the regionalization of public services.