At the midway point in what has been a historically difficult year for consumers, calls are growing increasingly louder for tax relief in the Commonwealth, and especially gas-tax relief.
And it’s time those pleas were answered.
Indeed, at a time when the state is essentially swimming in cash — the rainy-day fund saw $2 billion in capital gains tax collections between Feb. 1 and May 31 — it only makes sense for the state to bring from relief to those who are being adversely impacted by record-high prices at the pump.
And that’s …. just about everyone, from families looking to take vacations to businesses of all sizes just trying to carry on day-day activities. Prices have gone up in almost every category of consumer goods and services, but the huge increase in gas prices touches just about everyone, and it is having a very real impact.
That not-so-magic number of $5 per gallon was passed recently in the Bay State — and just about every other state in the country. In fact, it’s already well above that figure, which represents more than a number. For many, it’s a threshold. When gas hits that mark, people start to cut back.
They cut back on travel — which means fewer visits to the businesses, and there are many of them in this part of the state, in the tourism and hospitality sector that were already reeling from two and half years of pandemic and were looking toward 2022 as a return to something approaching normal.
Or … people and businesses cut back on other things, because they simply can’t cut back on travel.
And when they cut back, an economy that is already on the edge when it comes to heading into a recession, may just tip in the wrong direction.
If times were different and the state was not flush with cash, we could almost see a reason for not moving forward with some gas-tax relief — almost. But not in these times. Not when the state is far from hurting fr revenue and when many other states have seen the wisdom of providing residents with some form of gas-tax relief.
Not at a time when many businesses are finally starting to make it almost all the way back from the depths of the pandemic and need help, not another punch to the stomach.
Not at a time when many businesses have been forced to pass along price increases to consumers because of rising cost of labor, raw materials, and just about everything else, and now they’re faced with passing on more because of the rising cost of gasoline.
We’re not sure what a tax-gas holiday would cost the state when it comes to its credit rating or overall revenues. But at this critical time for the business community and the economy as a whole, the cost of not putting some relief in place would certainly be much higher.
It’s time for state lawmakers to do the right thing and provide the Commonwealth with some much-needed help at the pump. v