Originally Posted by Minnewaska
The payroll and income taxes collected on the jobs and business activity that the RI sales tax policy creates/retains, probably dwarf the potential sales tax. And the taxpayers have jobs! Not to mention the sales taxes on everything else that is spent by the out of state crowd here. I presume NH was doing the same math in keeping those stores open that are selling to Mass residents. Lose those jobs and your property taxes go up too, as you stop collecting both payroll and corporate income taxes on that activity and now have to pay unemployment and social welfare benefits.
Keep people employed and spending money. It's not that complicated.
You may well be right about the relative amounts brought in but states ought to make an attempt to proportion taxes fairly. NH has sky high taxes on anything you own, including car, house, boat, etc. They promote the "tax-free" state, which is true...unless of course, you happen to live there. It is very regressive to slap the responsible citizens with a big tax bill so that people can buy cheap liquor at state liquor stores. The overall tax rate in NH is pretty low. There is no income tax, no sales tax. The dollars to provide the financially strapped services like education and law enforcement come from homeowners.