June 14, 2009

Budget Cuts

I went to two graduation parties yesterday and everyone I saw smoking, I asked where they had bought their cigarettes. One 75 year old grandmother from the Cape told me she orders from the Indians on line, while the others say there is always someone going to New Hampshire. Obviously if they are completely out, they buy local but on a regular basis all of these people are not buying cigs in the Commonwealth of Massachusettts.

Now read Nick K today. The state revenues are going to continue to be less then expected and the new taxes passed to increase reevenues will not only not meet their targets, but may push people to buy more products out of the Commonwealth of Massachusetts. All of this will lead to more cuts in Worcester. As Nick says "all in all, it is a pretty gloomy situation".

If we are depending on the increased taxes on meals and hotels?? There is no way that is going to raise the kind of money we are going to need. The only way we are going to truly increase the revenue in the City of Worcester is to make it a business friendly place and start increasing the tax base not by looking for more sources to tax.

11 comments:

Anonymous said...

Hi Bill, I have been a reader of your blog for some time but have never left a post but I have heard some unsetttling news and I thought you or some of your readers might have heard about this. A person I know from work told me a family member lost a house to the city for failing to pay the taxes on it. The house was a tidy ranch in a desireable and stable neighborhood. It was quickly sold at a bargain price. My work mate looked into this a bit and thinks that someone may be "cherry picking" nice properties before they come on the public's radar. He feels this because he said that bad propeties in less desirable areas are not moving. I do not know much about real estate but I thought you or some of your readers might know whats going on. The situation sounds kind of fishy to me. Thanks. My name is Tom and I have lived in Worcester since 1996 and am originally from Lowell.

Anonymous said...

Bill:

As always...exceptional reporting!

Harry T
Worcester,MA

No Jake Brake Jahn said...

I went to a graduation party Memorial day weekend and was introduced to one of grads dads......and w/in less than 1 minute of casual conversation the guy introduces himself as retired fire fighter....(translation hero/ prima dona)....wasnt even beyond mid 50's even.....build houses now and tools around ina Pizzazie sports caaaaaah.......what is it with these guys and having to let us "laymen" know that they are/were FF'ers..........If I was FF'er I'd keep me eyes & ears open & my mouth shut........who gives rat's gluteous Maximus what you do/did for a living after less than 30 seconds of casual chatter.....

Then yesterday afternoon I am in gas station loading up on petrol when fire truck rollls in............practically blocks one lane of travel and parks right beside the air pump so it not accessed.........when they could have easily parked on the street where there is plenty of on street parking... 4-5 mins later one pot bellied jake emerges with a Dortios and a soda.........another w/a a bag full of some kinda goodies.....then off they go in a filthy blast of diesel fumes needlessly Jake Braking it............worse than Laconia bikers on thier Harleys as far as decibel level.

Word verification tonight "anises".........cant make thsi stuff up if I wanted to

Anonymous said...

Read a story a few months back about a old lady who was buying her cigs from "the indians". One day the state tax man came knocking and told her she had to pay up. All of those online places are required to submit sales reports to whatever states DOR that they sell to. I submit to you that the next big thing is going to be growing your own tobacco.

jahn said...

In early July my neighbor has to atttnd an annual cookout up in Cow Hampshire.....Londonderry to be exact.

His caaaaaah needs 4 new sneakers at close to $200 a pop........anyone care to guess if he has made an Appt. in NH to drop off the car the day of the cookout and get his new sneakers up there ...? Yes that exactly whats hes going to do and he has done similarly in the past and he always picks up 6 montsh supplly of Budweiser while In Cow Hampshire, too

Can you blame him? I figure he saves about 60$ with his July purchases up north and he doesnt even buys cigs. Has the 6,25% sales tax been finalized yet of is the vote still pending.

I am curious if anyone here would, out of good conscious, still buy the goods in Mass given that they're traveling to NH anyway. I wouldnt as long as theres' no inconvenience to me up north.

Got to love those Internationl Ass'n of Govt Employees window stickers and the "cop" window decal i saw in the parking lot of Oxford Walmart this weekend. The Brotherhood??? right..??? HUH??

Anyone see the piece in the Herald yesterday about "the MBTA engineers" (non WPI grads) whose job it is to ride in the rear of the commuter rail train and all he does is is open and close the doors.......MBTA pays $26M a year for the employment of these hacks.

JSF said...

Jahn,

The Mass Supreme Judicial Court still hasn't decided it Town Fair Tires of NH is required to collect sales tax from Massachusetts Residents.

Tell your friend not to let them put his address put on the invoice.

jahn said...

Thanx for the info JSF, I'll pass that along.

I have to wonder though where the Mass courts get off telling a NH business how to operate.........

Together We Can (tell NH businesses how to oeprate) Deval better hopes Barack gets a 2nd term so he can head to Washington in Obama's 2nd administration.b/c I am nmot so sure Mass is in ttank for a shot at an add'l 4 yrs of "Together We Can" (ness)

JSF (formerly Steve) said...

jahn said...
"I have to wonder though where the Mass courts get off telling a NH business how to operate........."

The DOR's position is that they are telling a Massachusetts business how to operate.

If you have a 1/2 hour to kill, check out the arguments presented before the SJC at mms://192.138.214.175/archives/SJC_10360.wmv

Jahn said...

Steve, I would venture an educated guess that each Town Fair Tire Store is a seaparte corporate entity & therefore the Town Fair Tire in question is a separate business incorpatred in Cow Hampshire that has nothing to do with Mass oterh sellign selling tires to Mass residents and I suggest this not enuff of a nexus for the Mass-hole courts to have jurisdiction....may even be a sepatre franchise owner too........

TY for the link......ill try to load it up later 2nite

Jahn said...

If Mass Dept of Revenue is so interested in where New Hampshire sold rubber actually meets the road ......maybe they should show up at the Lincoln Sq Tunnel on 4th July weekend.

Bring along the EPA and DEP too???

JSF said...

Jahn said...

"Steve, I would venture an educated guess that each Town Fair Tire Store is a seaparte corporate entity "

According to the pleadings before the SJC, it is one company. Also, it was the DOR, not the court that is trying to collect the tax. From what I saw, the court seems to be leaning towards Town Fair, at least from some of the questions they posed, such as:

If a Mass resident buys tires at a Sears in Montana, must the Sears collect Mass Sales Tax, under the same guidelines?

Sears does business in Mass like Town Fair, and Montana does not collect sales tax, like NH. The DOR replied that a Montana Sears would not be required to collect sales tax, but could not provide a compelling difference between the two situations.