New candy, alcohol tax questioned

If Gov. Deval Patrick gets his way, happy hour and the candy store may become a bit more costly. On Dec. 28, Patrick announced his plan to repeal an existing tax ban on candy, alcohol and sweetened drinks, including soda, along with his plan to drastically cut the state’s budget.

Massachusetts Department of Health and Human Services spokesman John Jacob said repealing the ban on taxing candy, alcohol and soda would not necessarily mean an instant price increase. However, it does allow the government to add a 5 percent tax in the future.

The Massachusetts Package Store Association is certain that Patrick’s move will result in an increased tax because of the state’s financial problems due to the troubled economy, according to a press release regarding the governor’s plans.

‘We believe the governor and the Legislature need to be more creative in finding new sources of needed revenue,’ MassPack leaders said in the press release. ‘A sales tax on liquor is simply another regressive tax that will impact the quality of life for the average citizen who is already struggling to make ends meet.’

Jacob insisted the repeal is not intended to increase Massachusetts state revenue in the economic downturn, but to urge Massachusetts’s citizens to adopt healthier habits.

‘The repeal of the tax is meant to encourage healthy choices,’ Jacob said.

Rather than patching up the state budget, the revenue will go to public wellness funds, such as alcohol and tobacco addiction programs and many other community programs that the state government supports, Jacob said.

Jacob cites the success that Massachusetts has had in deterring people from smoking cigarettes via taxation. Massachusetts added an additional $1 tax to all cigarettes sold this summer.

‘The economic downturn itself will be more of a deterrent than some tax,’ David Capeless, president of the Massachusetts District Attorney Association, said. ‘Taxation is working to some degree with cigarettes, but we are far more successful with public campaigns. The government needs to do the same kind of thing for alcohol.’

However, many Boston University students say the 5 percent increase will not increase the price of these products so much that their spending habits will change, School of Management junior Todd Greenburg said.

‘If the reason is to make people healthier, it is stupid,’ Andrew Carlin, a College of Arts and Sciences junior, said. ‘They are doing it because they need more revenue, and they shouldn’t try to justify it by saying they are looking out for our health.’

MassPack is predicting that more people will go across the border to New Hampshire, where the state government keeps the price low, to buy alcohol, and Massachusetts will lose out on in-state spending and the tax revenue it generates, according to the press release.

‘People will naturally weigh a relatively small price at the cash register to outweigh the cost of going out of state,’ Jacob said.

Those who would be most impacted by a possible cost increase are underage drinkers, because there is already a tax on alcohol in bars and restaurants, Jacob said.

‘I wouldn’t expect that this will be effective to deter underage drinking because it is not the underage drinkers who are buying the alcohol,’ Capeless said.

Capeless would like to see better examples set in individual communities where adults tell children about the harmful effects of alcohol.

‘The amount of sugar, candy and junk food is a determent to health, but it is not a monetary issue,’ Capeless said. ‘It should be dealt with by the community.’