What's The Use
We’d also like to address another, more local tax policy that could have serious economic repercussions. The City of Worcester recently took advantage of new freedom granted by the state and upped its meals and hotel room tax.
While the City of Worcester isn’t alone — many Central Massachusetts munici-palities are considering or have passed increases — we want to state plainly that we disagree with the decision by the Worcester City Council.
The increase in Worcester is this: the tax on hotel rooms was upped from 4 to 6 percent and the tax on meals was increased from 6.25 to 7 percent. The increases are supposed to bring the city an additional $1.7 million in revenue.
While we are sympathetic to the budget problems in Worcester City Hall, the reality is that restaurants and hotels are a major component of the city’s economy. And they are struggling mightily to survive this recession. An increased tax gives consumers more of an incentive to stay home, which could drive eateries and inns out of business.
When you couple this latest tax hike with the already inequitable tax split between residential and commercial property owners in the city, it’s beginning to feel like the city isn’t so business friendly after all.
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