Briefing: Tax Proposals
The Massachusetts Public Health Association recently led a collective of health advocates in a bid to repeal tax exemptions and raise money for centers and programs that promote healthy living and addiction prevention and recovery. The public hearing, which was held on April 7, served as a forum for those seeking revenue for healthy living but also heard from those opposed to the tax exemptions and increases.
What was proposed?
Those in favor of tax repeals called for a 5 percent tax on alcohol (sold in liquor stores), candy and sweetened drinks. Rep. William Brownsberger (D-Belmont) filed an alternative bill that did not repeal the alcohol tax but created an 8 percent excise tax on soda, juice and sports drinks and a 10 percent excise tax on candy.
Where would the new revenue go?
According to the health advocates, the proposed 5 percent tax would generate an estimated $146.5 million, which (if included in Gov. Patrick’s 2010 budget) would be directed to the state’s Wellness Fund. As a part of that fund, the money could be used to fund a variety of programs, but advocates urged that the money be directed specifically to addiction and obesity programs.
What is the opposition saying?
According to Peter Kessell, president of the Massachusetts Package Store Association, the liquor stores located along the Massachusetts/New Hampshire border would likely see a 15 to 20 percent drop in business if an alcohol tax was instituted.
How does Massachusetts compare to the rest of the country?
According to Susan Servais, executive director of the Massachusetts Health Council, the Bay State is one of only 10 states without a tax on candy and one of only seven without a tax on alcohol.
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