Will Massachusetts Taxpayers Finally Say “Reduce my taxes!”

Date: September 28, 2008

From the state that brought you Ted Kennedy and Universal Healthcare and one of the highest tax rates in the land, there is a strong possibility that voters in the liberal’s paradise of Taxachusetts Massachusetts will eliminate the state income tax.

Yes, you read that correctly. Massachusetts has a ballot contest this November that could drastically alter — some would say cripple — state government.

 

At issue is Question 1, which would eliminate the state income tax. It would save the average taxpayer about $3,600 a year. Annual revenue from the tax is about $12.5 billion, roughly 45 percent of the state’s budget of about $28 billion.

 

These are tough times for everyone as it is, and if Question 1 passes, things will become exponentially more difficult,” said Leslie A. Kirwan, the Massachusetts secretary of administration and finance.

 

Ms. Kirwan added that because some state programs cannot legally be cut, others would face cuts of 60 percent or more. The loss of billions of dollars from Question 1, she said, would devastate state services.  Elected leaders across the state are worried.

Even with the tag of Taxachusetts, its recent history suggests taxpayers are fed up.

In 2000, voters approved a phased rollback of the income tax rate from 5.75 percent to 5 percent. The Legislature froze the rate at 5.3 percent in 2002, permitting further reductions only if economic conditions allowed.

In 2002, a ballot measure to scrap the income tax received hardly any public attention. But to the shock of elected officials, it netted 45 percent of the vote statewide and a majority in nearly a third of towns.

Now, with the crippled economy, opponents fear that Question 1 will have even more traction.

Health care workers, small-business owners and unions are especially concerned about that prospect. A new group, the Coalition for Our Communities, has raised $1.3 million, about $1 million of that from the “fat cat” national teachers’ unions, and plans television advertisements and direct mail campaigns against the repeal.

The pro-repeal effort, which gathered 11,000 signatures to put the measure on the ballot, has much less money — about $25,000 left to spend, disclosure reports show.

Politicians at the state and local level are overwhelmingly against us,” said Carla Howell, chairwoman of the Committee for Small Government, who ran for governor in 2002. “Everyday voters are much more inclined to end the income tax.”

Question 1 would cut the tax by half the first year and eliminate it the next year, and Ms. Howell said the state could compensate by cutting lucrative employee pensions, paring bureaucracies and spending wisely.  We don’t have to cut any essential services or any government programs that are providing a benefit to the people of Massachusetts,” Ms. Howell said. “All we have to do is cut government waste.”

Some voters who wanted taxes lowered to 5 percent have decided to support Question 1 to show their anger at the state, said Barbara Anderson, director of Citizens for Limited Taxation, which advocated 5 percent but is now producing bumper stickers that read “Hell Yes! Question 1.”

It’s the only game in town, it’s the only question on the ballot, it’s the only chance for us to express our outrage,” Ms. Anderson said. “The more we looked at it and realized that other states get along very well without an income tax, like New Hampshire, you start dreaming.”

The 5.3 percent income tax rate is far from the nation’s highest, and, according to the Tax Foundation, a nonpartisan group, Massachusetts, which used to rank second in combined local and state tax burden, now ranks 23rd.

Only seven states have no income tax, but while ballot questions on sales and other taxes are common, those proposing income tax repeals are rare, said Pete Sepp, a spokesman for the National Taxpayers Union, which supports the Massachusetts measure. North Dakota has a ballot measure this year to halve the state income tax.

So let’s wish the taxpayers well in their quest to severely restrict the waste and corruption inherent in Big Government.

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