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State Senate Considers Increasing Sales Tax

Lawmakers Debate $26B Budget

POSTED: 6:09 pm EDT May 18, 2009
UPDATED: 6:46 pm EDT May 18, 2009

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The state Senate is leaning toward increasing the sales tax instead of the gas tax as it prepares to debate a $26 billion budget.

NewsCenter 5's Kelley Tuthill reported Monday that the senators spent much of the day behind closed doors, trying to agree on budget cuts and tax increases.

"Tomorrow there should be some drama. We don't know what the outcome will be," Sen. Robert Hedlund said.

At this point, senators said the focus is on a potential increase in the sales tax. A gas or income tax hike seems unlikely.

Gov. Deval Patrick met with the leadership Monday afternoon.

"The sales tax is not my first choice. I think a targeted approach is better," he said.

The governor has threatened to veto a proposed sales tax increase from 5 percent to 6 and one-quarter percent. He hasn't given up on an increase in the gas tax -- something quite unpopular with the tourism industry.

"It's very competitive. Every state in the region has commercials trying to lure the drive market," said Cindy Brown of Boston Duck Tours.

But the sales tax hike will likely face stiff opposition, as well.

"We cannot do this with cuts alone. We need revenue with reforms," Sen. Stephen Brewer said.

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