It was bad, but it could have been worse. Gov. Deval Patrick announced $352 million in cuts in response to a $600 million budget gap. Federal stimulus funds plugged the rest of the gap (see the Mass Budget and Policy Center's report).
The cuts hit the executive offices of state government, which include human services, public health and public education, and landed particularly hard on critical community programs for the homeless, domestic violence victims, gang involved youth, environmental protection, and public safety.
Local officials are waiting for the other proverbial shoe to drop on local aid formulas and it may not drop until a second round of 9C cuts in December, or when the Governor files his budget in January and stimulus funds are exhausted.
Notably, there was no new revenue included in the governor’s response to the budget gap. When pressed in a Blue Mass Group blog about the need for new broad-based taxes, Patrick said the time is not right.
“I appreciate your support of new taxes, but the time is wrong. People are watching every penny right now and a broad-based tax, in my opinion, is not the right way to go right now.” by: Governor Deval Patrick @ Sun Oct 18, 2009 at 17:20:02 PM EDT
It’s clear that neither the governor, nor the Legislature will take the lead on a proposal for new taxes. It’s up to us to create a groundswell of support that lets elected leadership in Massachusetts know that proposing new taxes need not be political suicide.
We can make the time right if some of the statewide and local community activists and organizations who already recognize that the most effective solution to the problem of declining revenues is to work together to systematically build public support for our Governor, and our legislative leaders find and tap other sources of revenue. Many of us are looking at the Tax Expenditure Budget, which lists items exempted from taxes.
How about closing some outdated corporate loopholes — maybe $140 million or so — or imposing a sales tax on some professional services used by corporations or higher income people — maybe $1 billion or so — or even just restoring the income rate to 2001 levels (5.75) would raise $800 million and has been discussed many times on these pages.
(Cross-posted on ONE Massachusetts)
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p>This ought to be fun to watch.
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p>Please enlist every Democrat running for office in the state to sign their name to this petition… Sincerely, The MASS GOP
Raising revenue may well be politically risky. But refusing to remedy the gaping budget shortfall facing us next year when the federal stimulus funds run out would be downright dangerous.
Do you know how many people are “just getting by”? You are out of your mind to think the citizens in MA are reading all this misuse of our tax dollars or that they have extra cash for more taxes. As for the Stimulus money running out… THAT is why some governors were scared to take the Stimulus money… it’s one thing to hire people for unnecessary jobs like putting in unneeded mile markers on the highways but when the state’s taxpayers have to foot the bill the answer will be “no way”.
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p>BTW… I’d like to take this moment to thank all the “in the pocket” legislators who rejected the Republican’s efforts to temporarily suspend the prevailing wage law as it applied to the Stimulus funds back in July. We could have had another 20-30% people employed with a good wage during this time but our “leaders” choose to pay the grass mowers $43/hour and let thousands of workers stand in the unemployment lines.
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p>Ask one of your friends her at BMG to contact their unbiased polling company “of choice” and ask the citizens of MA if they would support a tax increase. I suggest they wait for a period of “non reporting” of pension abuses, disability claim abuses, State troopers making over $200K, DOT payroll growth, Gov’s political hacks making large 6-figure salaries, Sal’s trial…
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p>I suggest your proposal of new taxes be added to the “joke of the week” diary.
and it is clearly pointed out here, there is no understanding by government officials of what a true living income is. In an effort to try to get around the inability to have a graduated income tax in Massachusetts…the following idea is presented.
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p>A truly terrific idea, if they would have it affect those making $150,000 or more, not $70,000 or more.
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p>$70,000/yr is slim pickins for raising a family in this state in these days. It is absolutely clear that anyone making such a suggestion is out of touch with the reality of middle class life, and does not know which income groups are teetering on the edge.
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p>I would support this sort of tax increase, as long as it increased taxes only for those making more than $150,000. I would support any tax increase as long as it does not affect those making $150,000/yr or less.
But $100,000-150,000 a year, for family income, is not too shabby, even in Massachusetts. Of course, there are expenses that make even that family struggle, but those problems should be tackled independently of whether or not we raise the income tax and the personal exemptions, especially given that the difference between the current tax rate and 5.75% is slim pickings compared to the expenses which are bankrupting families across the state. This becomes doubly important because some of the things that will ultimately save taxpayers money cost money to start — like a public option, or like making college more affordable for the middle class, or creating more affordable housing units in the state.
but until those ridiculous expenses are addressed, there cannot be a tax increase on the middle class. The middle class drives the economy. The middle class has no money to spend. Let’s wait and see what holiday spending is like. I have a feeling the numbers will be depressing.
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p>If the government needs more money, they can pull it from those with the most discretionary income, those who earn above $150,000/yr, not from those who are barely meeting their household budgets.
It takes money to make money.
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p>For example, the small cuts we’ve made to various state agencies have forced lots of hidden fees. Reminders are no longer sent out from the RMV — and if you get a ticket from that, car towed because you forgot to register or renew — it would cost hundreds and hundreds of dollars. Try that on for a middle class family; I think they’d have preferred the extra few nickels in taxes they could have paid rather than the potential fees and penalties that they’d have been charged. Going to 5.75%, spread throughout every paycheck, would hardly be noticed by most taxpayers, especially if we increase the personal exemptions.
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p>The services that would help save money for many families (and improve their lives) would be far more important, impacting the middle and working classes to a far greater extent, most especially those most at risk – like the disabled or unemployed. Helping these people get jobs, or pay for their necessary medical treatment, can save money over the long run and can even eventually add to the state’s coffers… but none of that happens when we get caught up on about one-half of one percent.
I am paying my daughter’s college tuition, so that she can graduate debt-free. My house has devaluled and thanks to onerous rules courtesy of the economic melt-down, I can’t refinance. I just got that news last week. My credit card has “repriced” me, despite a very good payment history and credit rating.
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p>So yeah – the middle class is going to notice. And we’re not going to be happy if income tax is raised.
is actually about $250 per year for a family earning $70,000/yr with about $20,000 in exemptions and deductions.
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p>Are you a homeowner? Owning a home carries so many additional expenses you’d be surprised at how fast money flies out the window. There’s taxes, insurance, maintenance, trash collection, water/sewer. I am well aware of the hidden fees and rate increases that have popped up everywhere. Bussing for students in our district/ grade 7-12 increased this year.
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p>Have children? There is day care costs, college tuition, medical bills, clothing, and trumpet rentals.
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p>Ryan, my family is a middle class family. Our budget would definitely notice an income tax increase. We have already “tried on” for size the increased cost of everything, from health care to groceries.
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p>There are other ways to increase revenue, and that would be from those above the middle class income groups. Leave the middle class alone. Give them a chance to pull themselves out of the disaster that is our current economy.
Wealth is being concentrated in a smaller and smaller group of people – more multi-millionaires, fewer and fewer solvent members of the middle class. Statistics on the concentration of wealth
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p>When the Top 1% owns 34% of everything and the top 20% owns 84.5% and the bottom 40% owns 1%….then some return of fairness and redistribution in some fashion is required or democracy itself and public stability are at risk.
in the Tax Expenditure budget.
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p>If we removed the sales tax exemption on “professional services” we could get 6 billion dollars to begin to restore and repair almost all of our sorely strained public structures, including public transportation, public education, public health, and social services.
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p>I know, I know we should exclude medical services. What else?
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p>You don’t even bother to have any caveats of how many children this fat-cat over $150K earner has, any limit of how much you will steal from him/her… just “I’ll support ANY tax increase” as long as it doesn’t effect me! You even go on to insult the “under $70k” earners… “$70,000/yr is slim pickins for raising a family in this state in these days” try to tell the family making $30K that $70K is slim pickens. Very egocentric.
I was being very generous, our family income doesn’t even come close to $100,000/yr. But I take into consideration those higher earners because I know that the cost of living varies greatly across this state.
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p>Egocentric would aptly describe you, since you would rather see tax dollars pulled from household budgets instead of the fifth trip to the Bahamas this year.
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p>I agree that those making less than $70,000 are in dire straights. But they are not being considered for a tax increase. Maybe if those tax cuts for the wealthy, John, would trickle down into more jobs and higher wages, that in itself would add tax revenue sufficient enough so no further tax increases would be needed.
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p>Call your peeps now and ask them to send their tax cut savings down to the middle class. That could solve the problem in it’s entirety. Thanks, John, you are so awesome!
of Stop & Shop and gather some signatures. Tell them you want to raise taxes (but only on the rich bastards) and see how people treat you. Might be a good education for you.
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p>PS I assumed your income was well below $100K with your attitude.
how out of touch you are.
that you are a brick wall, or a television set(was that kbusch’s description?). Neither can be educated.
Isn’t it an irony that while the administration is looking into raising revenues through expanded gambling the funding for treatment centers is diminishing? It is not enough to simply look into any kind of revenue sources but rather into those that bring a comprehensive approach to our revenue problems.
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p>Information from Wicked Local through SHNS: http://www.wickedlocal.com/arl…