A Boston Globe story by Andrea Estes a couple of days back told the story of the refusal of the House of Representatives to take up a bill that would allow retailers to advertise the fact that they are willing to pay the 6.25% sales tax for customers shopping in Massachusetts. The fact that we even have such a ridiculous law should in and of itself be an embarassment. The fact that the House leadership refused to entertain a bill filed by John Quinn, Democrat of Dartmouth, that would have made such advertising legal, is really beyond comprehension. How about the reaction from some retailers.

“I can’t believe it,’’ said Robert Bendetson, owner of Cabot House, a furniture company, which has been running newspaper ads (including in the Globe) promising consumers: “We’ll pay your sales tax.’’

“I’m just trying to save customers money. It doesn’t take any money out of the state,’’ said Bendetson, describing past sales tax holiday weekends as “one of the prolific sales events of the year.’’

“But I’ll have to change it,’’ he said. “Look, I’m not trying to break any laws.’’

How about Steven Sheinkopf?

Steven Sheinkopf – owner of Yale Electric, which also tried to lure customers by offering to pay their tax – said they are looking for another way to pass along the savings to their customers.

“We’ve changed our ads,’’ he said. “They should be concerned that the sales tax gets paid. All the other stuff, the obscure laws and all of it, just makes business harder for the rest of us. It’s sad because we just increased the sales tax and more customers will look at New Hampshire or the Internet. “

And the stated rationale:

In an e-mailed statement, Kaufman said the bill, “while laudable in its attempt to stimulate retail sales, concerns me because it could disproportionately favor big business retailers over small business ‘Mom & Pop’ stores. These big-box retailers have the balance sheets to absorb the tax, which small business retailers do not. In this economy, this is hardly the time to put small businesses at such a distinct disadvantage.’’

A comment by Jon Hurst, President of the Massachusetts retailers, indicating that he thought that the advertising technique prohibited was employed mostly by smaller retailers, was in the Globe editorial today that called for the repeal of this ridiculous law.

That’s a strange concern, notes Jon Hurst, president of the retailers association, since it was mostly small stores that were advertising they would pay customers’ sales tax in the first place.

And in any case what in the world are we doing when we are prohibiting stores from advertising in a manner that might keep Massachusetts shoppers from going over the line to New Hampshire to shop. Why is it that keeping investment and jobs in Massachusetts is somehow painted as a bad thing, especially when the State of Massachusetts loses no money??? Out of touch!

Read the Globe editorial here.

Read the Globe article here.