In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
- The Tax Policy Blog
- Massachusetts Building Wall on New Hampshire Border to Ke...
Massachusetts Building Wall on New Hampshire Border to Keep Shoppers In
Exasperated by business going across the border to low-tax New Hampshire, Massachusetts state officials have begun erecting a 50 foot tall, 10 foot thick wall along their 190-mile shared border.
Gov. Deval Patrick revealed the announcement via Twitter:
it's important that all do our patriotic duty and stop flight out of state to protect domestic business.
The Fortress, as it has been nicknamed by the Department of Revenue which is overseeing the project, is lined with bean bag guns, caltrops, and a series of reinforced steel gates to keep consumers in state. All entrances to New Hampshire require a search for all cash, credit, and debit cards. On the way back there is a complete check for any electronics and cigarettes individuals may be trying to smuggle back, with law enforcement ready with newly-printed "use tax" forms.
Economist Paul Krugman chimed in with a supportive mention in his weekly column, arguing that the Wall is effective stimulus policy that will help Massachusetts's economy grow significantly faster. He further suggested that New Hampshire should raise its personal income tax on the richest 1 percent to offset the lost sales tax revenue.
A spokesman for New Hampshire Governor John Lynch stated only that "[Governor] Patrick will rue the day."
Get Email Updates from the Tax Foundation
We will never sell or share your information with third parties.
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.