Below are excerpts from an article published by “progressisestates.org”. It highlights and shows how Michigan and Maryland are succesfully addressing their budget shortfalls. Its noteworthy that in both states significant consensus and coalitions have agreed upon major revenue sources … and without the controversy and “moral hazard” concerns that we are dealing with in Massachusetts. Its not too late to think of proven, effective and acceptable revenue sources other than casino gambling. Have we properly and thoughtfully considered effective alternatives?
Growing Economy BY Nathan Newman
MI & MD: Solving State Budget Crises with New Revenue
Resolving a budget crisis that shut down state services for four hours, early Monday morning the Michigan state legislature approved a new budget that raised the income tax and expanded the sales tax to cover more services, largely erasing a projected $1.75 billion deficit in next year’s budget. These were combined with $440 million in spending cuts, including cuts to the state’s public universities and community colleges. These bills were passed only after a handful of Republicans joined most Democrats in the state House and Senate as a government shutdown was being implemented, which would have furloughed 35,000 of the state’s roughly 53,000 workers.
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Maryland Faces Its Own Budget Crisis: …
To deal with the budget crisis, Maryland Governor Martin O’Malley has proposed a package that, along with increasing the state sales tax, would cut property tax rates and would actually reduce income taxes for 95% of Marylanders. Maryland currently has a flat income tax rate of 4.75% for all taxpayers and the Governor has proposed converting that into a progressive set of tax rates where lower-income families will pay less and wealthy residents will pay more through higher tax brackets of up to 6.5%.
Progressive Maryland, a coalition of religious, labor, social service and civil rights organizations, praised the Governor’s package. However, they argued it could be improved by eliminating tax loopholes used by the wealthy, such as deductions for yacht owners and country clubs, and applying the sales tax to services used disproportionately by the wealthy, including on legal and financial services. …
