Wednesday, May 20, 2009

As Innovative as a Rock

In today's Boston Globe, Boston Mayor Menino was quotes as saying:
"We need different, more innovative tools to manage costs and diversify revenues at the local level"
In appreciation of a bill passed by the Massachusetts senate which allows cities and towns to increase the tax rate on hotel rooms and restaurant meals.

Having completed my first year of the MBA program at Babson I can confidently say that a tax increase may be a tool to increase revenue, but it's certainly not innovative (or creative for that matter).

Perhaps somebody should tell that to the Massachusetts state legislature (who voted to raise the sales tax 1.25% and lifted the sales tax exemption on alcohol).