Tax Lesson from Massachusetts


Will Maine’s broader sales tax to new goods and services drive more Mainers to shop in New Hampshire?  Good question.  This news article may provide a clue.  Apparently Massachusetts is not only raising their sales tax to 6.25 percent (a whopping 25 percent increase) but they are also expanding the sales tax base to alcohol.  Now Massachusetts merchants are hanging on for the inevitable rush to the New Hampshire border.  Who else understands the negative effects of cross-border shopping than the very folks who are negatively impacted?  Are policymakers listening?  As I reported previously, Maine businesses feel the negative impact as well.