The Democrat Party: Hazardous to your financial health.
House lawmakers last night gave approval to $392 million in tax increases for smokers and the state's largest corporations, providing Governor Deval Patrick with a major political victory while drawing fire from business leaders.The legislators' 131-23 vote capped a long crusade by Patrick and his allies in the Legislature, who convinced House Speaker Salvatore F. DiMasi to back away from a more business-friendly plan and approve the state's most momentous tax increase since 2002.
It also ended two days of furious lobbying by banks and business groups and marked a legislative victory by the governor, who has been trying to improve his fortunes after the defeat of his plan to license resort casinos.
"We appreciate the House's willingness to move closer to the governor's proposal," said Doug Rubin, the governor's chief of staff. "When you look at where we started in this process, and the House and the Senate and the governor, for us to see that enacted is a good example of everybody working together."
After the House voted around 10:15 last night, DiMasi left without speaking to reporters but released a statement praising legislators for supporting a plan to help the state balance next year's budget.
"The members of the House have rolled up their sleeves, tackled difficult issues head-on, and provided common sense, fiscally responsible solutions to our budget challenges," he said.
The proposals would tighten corporate tax laws and prohibit several practices the governor called "loopholes," bringing in $217 million next year. It would also raise $175 million by increasing the state's cigarette tax by $1 per pack, to $2.51.
The cigarette increase would give Massachusetts the second-highest cigarette tax behind New Jersey, although New York legislators this week voted to trump both states with a $2.75-per-pack increase.
Proponents argued that the increase would fill state coffers and discourage residents from smoking, while critics said the state would lose money from smokers, who would travel to New Hampshire and Rhode Island to buy cheaper cigarettes.
UPDATE: More from the Herald and Mass Roots GOP.
SECOND UPDATE: More from the Globe.
THIRD UPDATE: More from the Globe and Herald.
