Wednesday, May 13, 2009

Retail Sales Decline, Sales Tax Looking Even Worse!

Last month, the Democratic-controlled House adopted an amendment to increase the state's sales tax by 25%. Republicans fought hard against this measure, knowing a hike in the state's sales tax would not only hurt Commonwealth residents, but would also have a damaging effect on local businesses.

Today, the Commerce Department announced that retail sales declined for the second straight month in April. Given the current economic situation, people all over the country are living cautiously. They are cutting back on eating out, avoiding shopping for non-essentials and overall trimming their household budgets. Increasing the sales tax will only make matters worse and this alarming new statistic strengthens our argument against raising taxes.

Click here to read the article regarding the retail sales decline.