Milford Daily News, October 21, 2010
Massachusetts voters face a critical choice on Election Day, and not just in the campaign for governor. Question One on the ballot will ask voters to create a special tax exemption for alcohol at retail stores - and slash $110 million from a budget already facing a $2 billion deficit. It's a reckless fiscal and public health policy measure that should be voted down.
If approved, Question 1 would change the state's sales tax law to carve out a special exemption for alcohol sold at retail stores. Alcohol would still be taxed at restaurants and bars. The only items that are exempt from the state's sales tax are basic necessities, like food, clothing and prescription medicines. Alcohol is not a basic necessity and doesn't deserve a tax break.
In radio ads currently running in Massachusetts, proponents of Question 1 argue that residents are flocking to New Hampshire and buying tax-free alcohol there. Aside from the dubious financial wisdom of spending time and gas money on a trip to New Hampshire to buy alcohol, the ads are not true. Actually, sales in New Hampshire are down slightly from their 10-year average of 5.1 percent growth. There has been no spike in alcohol sales in New Hampshire.
However, alcohol sales are up in Massachusetts by 4 percent in the past quarter, according to the Department of Revenue.
As public and fiscal policy, it makes no sense to exempt alcohol from the sales tax. Forty-five other states (all the states that have a sales tax) apply it to alcohol. The Massachusetts alcohol tax is clearly in the mainstream for all states.
Every dollar of the tax goes to essential addiction prevention, treatment and recovery and public health services, through the dedicated Substance Abuse Treatment Fund. This fiscal year, it will bring in about $110 million in revenue to support vital health programs.
The Committee Against Repeal of the Alcohol Tax is a group of more than 160 healthcare, human service, community, union and business groups that have banded together to get out the message about the impact of the alcohol tax repeal.
According to a poll conducted this spring by the Committee, 58 percent of voters are opposed to repeal. A State House News Service poll recently found the numbers had climbed slightly to 60 percent and a Boston Globe poll found similar opposition to the alcohol tax break. But proponents of the repeal are spending over $1 million to secure a Yes vote.
So who's behind Question 1? The liquor industry, which stands alone on this crusade. Not one organization outside the industry has endorsed the campaign or even contributed money to it. Even business associations have spurned the liquor industry. They argue that the state cannot afford the lost revenue, and that it would be unfair to give preferential treatment to alcohol in the state's tax code.
The alcohol sales tax, paid only by those who purchase alcohol, goes directly to a fund for treatment of addiction. We can't afford to repeal this tax. That is why people should vote no on Question 1 on November 2.
Vic DiGravio is president and CEO of the Association of Behavioral Healthcare. Maryanne Frangules is executive director of the Massachusetts Organization for Addiction Recovery. They co-chair the Committee Against Repeal of the Alcohol Tax.
On the Issues, People & Organizations in Behavioral Health in the Commonwealth
