A costly burden on Plymouth residents and businesses
Plymouth is a great town – one with many fine restaurants and businesses and a tourist trade that is the envy of all the commonwealth. Why should we, as Plymouth residents, condone a new tax that could change this?
In October, Plymouth Town Meeting members (by a three-vote margin) failed to heed the recommendations of the Board of Selectmen and Advisory and Finance Committee and, instead, voted to institute a 0.75 percent meals tax at Plymouth restaurants and food service establishments. Fortunately, residents have a chance to undo this mistake Jan. 19.
No one denies that we are facing a challenging economic climate that has forced individuals, businesses and governments to make difficult spending cuts. While families and businesses are forced to "do without" when income and earnings decline, governments often seek to increase taxes during revenue shortfalls as an apparent "quick fix" to bring in additional money. Once put in place, these taxes never disappear when the economy recovers.
This proposed increase comes on the heels of a 1.25 percent increase in the state sales tax adopted by the legislature last year. If the additional meals tax goes into effect, the tax that people pay when dining out in Plymouth will have increased 40 percent from 5 to 7 percent in less than one year.
Fortunately, enough concerned Plymouth residents and restaurant owners obtained the necessary signatures to put the meals tax increase on the ballot, and Plymouth voters now have the opportunity to make their opinion known at the polls.
Meals tax increase supporters argue that it is only a matter of a few cents added onto your restaurant bill. It seems that each tax increase proposal is defended by the claim that it is so insignificant that you will not even notice it. These "insignificant" tax increases add up over time and are another blow to people's spending power during a time when families are counting every dollar and cent.
Another argument of supporters is that the meals tax increase will allow property taxes to be reduced. That is not the case. Funds projected to be raised by the meals tax were not included in the town's budget; meals tax revenue would, instead, fund additional spending.
Residents and visitors will feel the increased tax on their bills, but the adverse effects won't stop there. Restaurants will be forced to absorb much of the cost burden as they seek to remain affordable to their customers and competitive with restaurants in neighboring communities. Many restaurants are struggling just to survive during this economic downturn. Last year alone, several Plymouth restaurants, including the Colonial, Croma and Stoneforge, closed their doors. Consider also the impact this could have on restaurant wait staff in the form of reduced tips, as patrons make adjustments in the amount that they "round up" the bill.
Plymouth stands alone among South Shore and Cape communities in adopting the local-option meals tax. Because Plymouth is a tourist town and features many wonderful restaurants and other attractions, it is essential not to lose our competitive edge.
The town benefits from increased revenue when Plymouth restaurants and other businesses grow, succeed and pay taxes. This is a critical time to promote economic development and to show our support for the restaurants and other local businesses of America's Hometown.
Let's not use a revenue downturn as a reason to impose a new tax on Plymouth residents, businesses and visitors. Instead, let's support our local businesses, recognizing that their success leads to revenue growth for the town and jobs for Plymouth residents. Repealing the meals tax will help keep Plymouth an affordable and attractive community for residents and visitors alike.
Please vote "no" on the meals tax referendum Tuesday, Jan. 19.
Laurie Klotzbach Curtis is the director of the Vote No on Meals Tax Increase Committee and a Town Meeting representative from precinct 13.
