The annual holiday shopping season is coming to a close. This is the time of year when retailers across the country look to make that one big push towards profitability. If they can give people the right deal, they wil be that much closer to that goal.
Some retailers must deal with more that other retailers when it comes to competition for the almighty dollar. Some have the misfortune of being close enough to a bordering state that does not offer a sales tax. If that is the case, then shoppers may be tempted to drive further in order to save a little more.
That is the case in Massachusetts, a state bordered by tax-free New Hampshire. The state house did little to help retailers in the Bay State when it voted to raise the sales tax from 5% to 6.25% in August of this year.
Legislators across the fair commonwealth are crying poverty. They are saying they need to find a way to raise revenue in order to keep things operating. Raising taxes is not the way to work. All that does is make people who live a little further away from the border considered taking their hard-earned money elsewhere. A rising tax means more money being saved by shopping in a tax-free state. Suddenly a drive up to New Hampshire seems worth it.
I suggest lowering the sales tax. Doing so would make people think twice before making a trek to the Granite State and keep the money in Massachusetts. By lowering the sales tax, people are saving money. This would allow them to spend in more places. More business would be profitable and the economy would recover.
The legislators are doing no favors by raising taxes and fees. This act merely gives people more reason to take their money elsewhere and make New Hampshire businesses more merry.
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