Increasing the sales tax from 5 percent to 6 percent would raise about $750 million a year, according to some estimates. Raising it another percentage point, to 7 percent could bring in a total of $1.5 billion in new revenue per year, according to the estimates.
Well, shit, why not bump it up to 50% and rake in an extra $33 billion and change?
Only an idiot (or a politician pandering to a voting block comprised largely of idiots) would try to calculate tax rate vs. revenue numbers using a y=mx+b linear equation out of a ninth grade algebra book.
Seriously though, let me take a whack at it.
Raising the sales tax from 5 percent to 7 percent would only increase the number of miles Massachusetts residents would be willing to drive to get to tax-free New Hampshire for all their retail shopping needs, while decreasing to zero the number of Rhode Island residents making similar trips north into Massachusetts.
Massachusetts: Puttin' the "progress" back in "progressive" since, um...um...well...I'll have to get back to you on that.
Alternate Post Title: The Great New Hampshire Stimulus Package Rolls On