Saugus selectmen chairman Wong fears tax may lead to layoffs

SAUGUS – While Selectman Michael Kelleher might feel heartened at the possible institution of a dedicated 1 percent meal tax, his colleagues calls it a double-edged sword.Kelleher said a visit to the State House has him optimistic that officials are loosening their stance on possibly implementing a 1 percent increase in the meal tax. That additional 1 percent would come directly back to the communities that harbor the restaurants. Kelleher argues that based on 2007 figures, such an increase could net the town upwards of $760,000.Donald Wong is not only chairman of the Board of Selectmen but he, along with his family, also runs one of the largest restaurants in town, Kowloon. He said Wednesday that he would be against the tax, but not simply because of his job status.He argued that considering the economic slump that has touched nearly everyone, even a 1 percent meal tax might be enough to keep people home. It’s a vicious cycle, he added. If people stay home there is less work, which equals fewer workers and translates to layoffs.Wong said restaurants are often the largest employers in a community. “From mom and pop organizations to corporate chains and we are all hurting right now,” he said.He said his business has already taken a hit with fewer Christmas parties.”How can businesses have Christmas parties when they’re laying people off?” he asked. “You don’t celebrate laying people off.”This is not the first time Wong has found himself in an awkward position politically. When he was still a Town Meeting member, Wong voted to close the library rather than institute a trash fee, which would have funded the budget, despite the fact he served on the Friends of the Library.”You have to do what’s best for the whole,” he said.Wong said he didn’t think a trash fee was best for the town and he doesn’t believe the meal tax is either.”Sure it would come back to the town but how many people will be out of work because of it?” he asked. “It’s a double-edged sword.”