Senator Ken Donnelly Statement on Sales Tax Holiday

Last night, the senate voted to approve a sales tax holiday that will occur this August. For many different reasons, I voted against this proposal.

The economic benefits of sales tax holidays have long been disputed and in my opinion, they provide a distraction from the significant and overdue updates needed to permanently reform our tax structure. I would like to see a lasting and meaningful change that would put money in the pockets of working individuals and families over the long term and allow us to adequately fund the core services of our government.

The upcoming tax-free weekend alone will reduce state revenues by an estimated $25 million. This comes at a time when the governor is working to reduce state government by 4,500 employees, many of whom provide important direct services to residents. Governor Baker has also vetoed funding for important programs like early childhood education, kindergarten grants, and public higher education. Along with many other communities across the commonwealth, my district is facing a serious and deadly opioid crisis and, as starkly highlighted by the grueling winter, our transportation system is in dire need of repair along with our roads and bridges. Solutions for the critical problems before us will undoubtedly cost money. We cannot afford to lose important revenue – now is the time to invest.

I will be the first to support any bill that assures taxes are fairly shared proportionately among income earners. The sales tax holiday does not get us closer to that goal. We must find a permanent solution to fund the vital services our residents rely on and create a progressive tax structure that supports the hardworking families and individuals every day of the year.