BOSTON – House Democratic leaders, facing harsh criticism from Republicans, postponed a vote to raise the cigarette excise tax by $1.00, lower the corporate income tax rate and close two major corporate tax loopholes, reports the Worcester Telegram reports.

Democratic leaders, who say the tax increases are needed to fill a $1.3 billion anticipated shortfall in revenues to support next year’s proposed spending increases, abandoned plans to vote on the bill yesterday at the last minute.

Republicans said the cigarette tax hike and corporate loophole closings would hurt businesses across the state and discourage job creation already at risk from recession.

Critics said the cigarette tax hike would hurt retail stores and businesses along the state’s borders, forcing many convenience stores to close and job losses, as more people cross state lines for cheaper cigarettes.

State Rep. George N. Peterson said next year’s revenue projections are $1 billion more than this year and the new taxes would have “a huge impact on businesses.” Shoppers, he said, would flock to New Hampshire where a carton of cigarettes costs about $35, compared with the new $68 per carton price the tax would impose in Massachusetts.