Ready For Ballot Initiatives to Cut Sales Tax?

Written by Michael Cloud

Massachusetts voters were polled:

'When the Massachusetts state government wants to spend more money than it collects in taxes, how should it deal with the money gap? Raise taxes? Cut spending?'

12% answered, "raise taxes."
71% responded, "cut state government spending." (1)
Yet the Massachusetts legislature opposed voters - and raised taxes.


What is the state legislature's remedy for:

  1. funding Mitt Romney's Massachusetts Government-Mandated Medical Insurance Program?
  2. the Massachusetts state government collecting fewer tax dollars than it wants to spend?
  3. a weak and ailing Massachusetts economy?

"Raise the Sales Tax from 5% to 6.25%!" — voted the Massachusetts state legislature and the Governor.

In a massive "Yes" vote, 200 Massachusetts legislators and the Governor raised gave us their remedy for a, b, and c.


In May 2009, the Beacon Hill Institute released a study of the impact of raising the state sales tax from 5% to 6.25%.

Here's what they found:

  • This sales tax increase will drain $900 million in new taxes each year out of the pockets of consumers and the revenues of retail businesses.
  • This sales tax hike will destroy 12,666 private sector jobs.
  • This sales tax hike will create 6,579 NEW tax-funded government jobs.
  • It will reduce Massachusetts private sector investment by $51 million.


Is it time for Ballot Initiatives to undo the damage done by raising taxes in Massachusetts?

Is it time for Retail Business Leaders, small business owners, and other retailers in Massachusetts to help their customers by actively backing Ballot Initiatives to reduce the sales tax?

The sales tax increase will cost Massachusetts retailers and their customers $900 million in ADDED TAXES every year — starting this September.

For a tiny fraction of that, they can roll back the sales tax.

Here's what I propose:

Two Ballot Initiatives.

#1 would roll back the states sales tax from the new, higher 6.25% rate to the old 5% rate.

#2 would reduce the sales tax from 6.25% to, say, 2%. (Why not go all the way? The state government is using part of the sales tax as collateral for government bonds. But we will take the tax rate as low as the law allows.)

This would give voters 3 choices: keep the new, higher 6.25% sales tax; roll it back to the old rate of 5%; or, reduce the sales tax to an affordable 2%.

3 million voters, rather than 200 legislators and 1 Governor, would decide which tax is best for the people of Massachusetts.


With these 2 Sales Tax Reduction Initiatives on the November 2010 ballot, several things just might happen:

  • All 200 legislators - and the Governor - will be forced to defend their tax hikes — and run against both tax cut choices.
  • Seeing the Sales Tax Cut Initiatives headed for the ballot may encourage a large number of challengers to file AGAINST the incumbent tax hikers.
  • The Sales Tax Cut Initiatives will attract TAX CUT VOTERS to the polls in November -- to vote FOR the tax cut they want, and AGAINST the incumbents who raised the tax.
  • All of these may pressure the incumbents to REPEAL the sales tax hike — so they don't get voted out of office. Never underestimate the survival instinct of career politicians.


Attention Massachusetts Retail Business Leaders, Retail Business Owners, and Small Business Owners:

Do you want this? Do you need more information?

Please contact Carla Howell now. Just send a reply to this email.

Please send Ms. Howell your name, business, email address, and telephone number — so she can get you the information you need.


1) Poll of likely November 2008 Massachusetts registered voters conducted by Fabrizio, MaLaughlin & Associates.

2) Beacon Hill Institute Study