34 South Main St., Attleboro, MA - Directions - (508) 222-7000
Home News Sports Features classifieds milestones services photos tvlistings cars jobs realestate subscribe
News

Lawmakers greeting tax plans with dismay




GOP members fought to defeat version of bill now before state Senate
ATTLEBORO - The only thing standing between smokers and a $1 a pack increase in the cigarette tax is the state Senate.

A tax package which includes a cigarette tax hike was approved by the House and is on its way over to the Senate, where President Therese Murray has given it her blessing.

The measure would raise the state cigarette tax from $1.51 to $2.51 per pack, a move that will raise an estimated $175 million a year.

It would also close some corporate tax loopholes that advocates said allow large firms to avoid paying their fair share of taxes in Massachusetts through bookkeeping manuvers.

To offset a portion of the taxes raised by closing the loopholes, the bill would also gradually lower the corporate rate from 9.5 percent to 7.5 percent by 2012. The changes would increase the state's income from corporate taxes by $217 million next year, although it would take in less in future years as the rate reductions take effect.

State Sen. James Timilty, D-Walpole, said he supports the closing of the corporate tax loopholes, but opposes the $1 hike in the cigarette tax.

He joked that his wife is a smoker, so his "No. 1 constituent" would be angry at him if he supported the increase. Turning serious, he said the $1 increase is too steep.

Timilty said if the cigarette tax is combined in one bill with the loophole closing he would have no choice but to vote for the bill, but would oppose the cigarette tax if it was voted on separately.

Timilty said he supports closing the loopholes because they allow some large corporations to "skirt" Massachusetts laws and avoid paying taxes here.

"They should have to pay the same taxes we do," he said.

The tax bill passed overwhelmingly in the House, 131-23, Thursday after some compromising between Gov. Deval Patrick and House Speaker Sal DiMasi. The speaker wanted a bill more advantageous to corporations.

Local Republicans fought in the House to defeat the bill, but came up on the short end of a lopsided vote.

State Rep. John Lepper, R-Attleboro, said the state should not be raising taxes while the economy is slowing.

"Increasing tax when we are going into recession is crazy," Lepper said. "We haven't recovered yet from the last recession." Republicans also criticized the idea of raising taxes on some industries while offering tax breaks the film and life-sciences industries.

"We try to promote investment and then we're saying, 'Oh by the way we're going to rack you,'" said Rep. Jay Barrows, R-Mansfield. "We try to entice people to come here, but at the same time we're racking everybody that is here."

Critics of the cigarette tax said it will drive Massachusetts smokers to go to other states buy cigarettes for less.

 


*Member ID:
*Password:
  Forgot Your Password?
 
View Comments » No comments posted. « Hide Comments


*Member ID:
*Password:
  Forgot Your Password?
 
 or