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Massachusetts 2008 Ballot Questions
Ballot Question 1
"A PROPOSED LAW TO ELIMINATE THE
STATE INCOME TAX"
This proposed law would
eliminate the state personal income tax for all tax years beginning on or
after January 1, 2009. The
personal income tax applies to income received or gain realized by
individuals and married couples, by estates of deceased persons, by certain
trustees and other fiduciaries, by persons who are partners in and receive
income from partnerships, by corporate trusts, and by persons who receive
income as shareholders of “S corporations” as defined under federal tax law.
The proposed law would not affect the tax due on income or gain
realized in a tax year beginning before January 1, 2009.
The proposed law states that if any of its parts were declared
invalid, the other parts would stay in effect.
The Petitioner’s Argument:
Committee for Small
Government
http://www.smallgovernmentact.org
-
Tax payers would save money.
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Seven states have no income tax.
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The government budget would be reduced.
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State spending would be curbed, creating a budget similar to that of 1995, subsequently forcing the state legislature to streamline and cut the waste out of the
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It will take $11 Billion out of the hands of Massachusetts Big Government – and put it back into the hands of the people. This $ 11 billion will create hundreds of thousands of new jobs in
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This will force the state legislature to get rid of the failed, flawed government programs that don't work.
LWVMA Arguments Against the Proposal:
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If the income tax were to be eliminated, this would result in more than $12 billion being removed from the state's tax base, more than a third of the state’s $27 billion budget.
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There would be $12 billion less in state funding for public works projects such as construction (roads/highways), public safety, school budgets, and many other state services (including Medicaid).
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If state funding is cut to programs such as Medicaid, then the federal funding will also be eliminated to these programs.
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If this tax were to be eliminated, this could lead to lawsuits against the states if they could not fulfill government mandates (as a result of the money shortfall).
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Local communities may have to raise property taxes significantly to maintain local services. For example, the state provides 40% of the total K-12 education funding in
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Municipal Governments would see more overrides and the state would raise fees and the sales tax.
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Business and Corporate taxes are so low that a reduced tax would create higher profits but not necessarily more investment.
League Stance:
·
From the
“League of Women Voters of the Massachusetts",
Program and Action Book,
"A state and local tax
structure that will have an equitable impact on taxpayers and adequately
support state services with consideration of the effect on the state and
local economies; distribution of state aid in a manner that will equalize
municipal resources; a comprehensive state budget system that will provide a
basis for the evaluation of the cost and effectiveness of current state
programs and long-range capital expenditures; up-to-date, uniform and
accurate property valuation; and efficient management of the revenue
collection systems." (1969-1979, 1992-93)
·
LWVMA has a policy of opposition to
draconian tax and expenditure limits which are inflexible, are borne unduly
by the poor, discourage good fiscal planning and cause detrimental changes
in the balance of power between state and local government.
- June Michaels, Fiscal Policy
Specialist, Coalition to Fight Income Tax Initiative.
978-546-3863,
macluj@comcast.net
Resources
http://unionreview.com/carpenters-fight-elimination-income-tax
http://www.wwlp.com/global/story.asp?s=8518448
http://www.boston.com/news/local/massachusetts/articles/2008/05/12/activists_push_to_repeal_state_income_tax/?page=2
http://friendsofatr.blogspot.com/2008/05/income-tax-repeal-presses-forward-in.html
http://www.metrowestdailynews.com/news/x192204858/Income-tax-cut-unlikely-says-DiMasi
http://www.massbudget.org/question1.html
http://www.smallgovernmentact.org/nat-051508.html
http://www.pvpc.org/pressreleases/2008/pr-may-22-08_pfp_tax.shtml
http://www.govspot.com/know/incometax.htm
http://smallgovernmentact.org/index.html
For more information
contact fiscal policy specialist June Michaels
(jmichaels@lwvma.org).