Thursday, January 29, 2009

Patrick's Unsavory Plan

Governor Deval Patrick announced yesterday that in producing his emergency measures to balance this year's budget and in his budget proposal for the next fiscal year, the governor wants to generate $587 million in new taxes, fees, and other revenue. Under his plan, the state could raise approximately $150 million by eliminating an exemption on the state's 5 percent sales tax on alcohol, candy, soft drinks, and juice drinks [drinks that are less than 50% natural].

Based on the list of items he is suggesting we tax, it sounds a lot like a fat tax or maybe a glutton tax. In other words, these items he is suggesting we tax are all items one might consider nonessential. So by that logic we don't we begin to tax frozen pizza, navel oranges, english muffins, instant potatoes, or sliced bacon [all of which are on sale this week at your local Hannaford grocery store]? The reason is we currently do not tax food in this state regardless of it's health benefits or social status because it has been set forth as an essential need and therefore not taxable.

The ironic part of the Governor's plan is this new tax revenue is not going to be used to help cities and towns but rather it is going to be placed in a special health fund. So much for resolving the deficit and it looks like you better stock up on your alcohol, candy, soft drinks, and juice drinks before the tax man adds another 5% to your grocery bill.

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