Group warns income tax cut would hike property taxes
If voters abolish the state income tax next month, the state would be forced to slash most agency budgets by more than 70 percent, according to a report by the Massachusetts Taxpayers Foundation.
According to the report, the large cuts in local aid would lead to higher property taxes which for many individuals would more than offset their income tax savings.
Agencies and services that would experience the highest cuts to compensate for the loss of approximately $12.5 billion raised annually by the income tax include State Police, district attorney offices, courts, prisons, state parks, the Registry of Motor Vehicles, mental health services, and environmental programs, said Michael J. Widmer, president of the foundation. Widmer shared highlights of the reports during a telephone interview.
"It would be devastating," Widmer said. "It would hurt our economy both short and long term in a huge way."
Some programs, he said, would have less severe cuts. For instance, he said the state would have to fund at least three-quarters of current funding for local schools to cover various constitutional or legal mandates.
The question, if approved, would cut the state income tax from 5.3 to 2.65 percent on Jan. 1, in the middle of this fiscal year, and abolish it entirely a year later. For the average taxpayer, that would mean roughly $3,700 more in take-home pay.
Carla Howell, chairwoman of the Committee For Small Government, which is pushing for the income tax repeal, said Mondday she had not seen a copy of the report, but believes the number is false. "Only funny math can come up with that number," said Howell, who estimates that eliminating the income tax would force state agencies to cut spending by 27 percent.



That's a bunch of nonsense! The state doesn't need across the board cuts after the income tax is repealed--all they have to do is cut the biggest entitlement giveaway programs by 75% and NOT EVEN TOUCH the important but less costly smaller programs like law enforcement, aid to towns and mass transit.
Corporations are UNDER TAXED in Mass. compared to states with similar demographics, and individual earners are over taxed. The MTF exists to cut corporate taxes so wage earners can pick up the tab. Widmer will say anything to keep the state milking us so that it doesn't go after businesses to pay their fair share.
It is better to pay higher property taxes and see the money go to local schools, roads and public safety, than to pay for Patronage at the state level.
Vote Yes! The state does not allocate the money correctly now - so the less they have to squander the better
scary. I hate taxes, but they are a necessary evil. What happens when roads need to get paved, bridges repaired, etc?
For taxpayers who itemize deductions on their federal tax return would also see their federal tax increase since you won't be able to deduct your state tax
Just curious how much funding this agency gets from the state, which obviously is against this measure? Also, how much it just cost the taxpayers to produce and publish the report?
yes, I am for it. I will vote YES to abolish the Income tax cut.
because I know that Local police and State Police abuses their power.
MTF. Thanks for stating the obvious. You people are quite brilliant. The whole point is to shift power to local communities and to stop wasting a good portion of our tax dollars. Funneling money through your state coffers back to our towns eats up 25% of each dollar. So what if the property taxes rise. At least we'll know that our money is not being carved out by Massachusetts state beaurocrats. Beaurocrats that add not only add no value to our society but add to the contrary by placing stresses on our families and pulls away the ability to govern ourselves and gives it to Beacon Hill hacks.
MTF was also very much against Prop 2 1/2 years ago. Cut would be less than 40%, but according to them services would go down 70%. Democratic math.
The proposed MA budget is $47.3 billion. The no-income tax plan would put the budget around $35 billion. This is about a 25% decrease.
Yet, the Mass. Taxpayers Foundation says most state agencies would need to slash their budgets by 70%. Wha? Really? Seems strange. They must be using the "new math" to figure this out.
In addition, our property taxes are constantly going up (mine have gone up every year since I bought my house 5 years ago.) At least the next time they get raised, I'd have an extra $3700 to help pay them thanks to Carla Howell.
Repelling state taxes will hit the middle class and poor people the hardest as every town and city will need to raise property taxes. Every home owner will suddenly owe twice their present property tax. Just check New Hampshire where property taxes support schools, police & fire departments. People in NH are struggling with huge property taxes. They are beginning to think about the need for state taxes.
State fees will rise.
Watch for the state's sales tax to rise.
People would no longer be able to deduct their state tax from their federal income tax.
>> "People in NH are struggling with huge property taxes. They are beginning to think about the need for state taxes."
That hasn't happened yet in any state without an income tax. You can predict New Hampshire residents would be suspicious that in addition to a putative state tax, that they wouldn't see any concomitant decrease in their property taxes. They very much understand they'd be going "D'Oh!!" when it's over, and ruing the day they ever did it. They're not stupid.
Vote yes on question 1, it's better than having no say at all in Massachusetts government.
People, it would be 2.6% next year if repealed and the State already has plans to raise taxes and fees.
Please Vote YES. As a NH resident I still pay MA income tax, plus the high property tax in NH. And I don't receive any benefits from MA, yet people from MA can come to NH and purchase items sale-tax free. Where's my no-taxation without representation.
This is a great idea, but even if it passes, the beacon hill hacks won't enact it. A few years ago the dukakis surtax was repealed. The hack in their wisdom refused to roll it back. They had to be sued to take away just a small amount.
If this does pass, the hacks will ensure that all cuts will be punative to the taxpayers. No, they won't cut all the fat on beacon hill, perks, administrators and staff. They will go right to public health and safety.
I think it will be painful, but necessary.
A final thought, how did we ge to this state. ? We have a full time legislature.. WHY ? they have been making law since the 1600's , don't we have enough by now ? They could got to a part time model like many ohter states. I think having to earn a real living in the real world would help and keep them from dreaming up new ways to squander tax revenues.
Post #8 John: "So what if property taxes rise?"
Here's the so what... there are a lot of people who have been in their homes for many years, but have since retired. Our current system has some of our taxes based on income (the state income tax) and some based on property (the local property taxes). If we eliminate income tax and shift solely to property taxes, either retired residents are going to be completely unable to afford their homes, or service cuts are going to be beyond unacceptable. Sorry, there's no such thing as a free lunch... Please vote against Question 1.
The sky is falling yelled henny penny...do we own our own homes or not...hike up the tariff and our taxes will go down all along the board. For centuries when we had a high tariff on foreign inports american workers were protected..NAFTA destroyed all of that...now slave labor goods from China has caused much of the problems we face today. Both parties are the enemy of the people..TR declared back in 1912..'our party is not a third party but a second party..the corporations control the major ones for their own pocketbook gains.." no change since then..
Voting YES on the amendment to abolish the income tax would force the politicians in the state to do their job; manage the state properly. It would also act as an incentive to look into other forms of revenue collection, such as, a consumption tax, possibly modeled after the national FAIRTAX ACT initiative to replace some lost revenue. Should the government hacks try and derail the amendment after passage, a high political price would be paid by the "Let's Tax 'Em To Death", tax and spend politicians at the polls each election. Heck, Florida, Texas, and a number of other states seem to work just fine without an onerous and burdensome income tax. What is wrong with Massachusetts following suite? Where are all those Phd's in Boston? Doesn't take a rocket scientist to figure out that if you want less of something (productivity, success), then, tax it. Massachusetts taxpayers need to get with the program and throw off the bonds of excessive taxation like many successful states have done. You'll be glad that you did.
It is better to pay higher property taxes and see the money go to local schools, roads and public safety, than to pay for Patronage at the state level.
Unless the money doesn't go to local schools or roads. Town government is great, until you find yourself frozen out because you cut the mayor's son from the team, or you don't go to the town manager's church. There's very little difference between local patronage and state patronage.
"People in NH are struggling with huge property taxes. They are beginning to think about the need for state taxes."
Very high property taxes were part of the reason Connecticut instituted an income tax 10 years ago.
Florida, Texas, and a number of other states seem to work just fine without an onerous and burdensome income tax
Florida has very high sales, hotel, and property taxes. Texas, Wyoming, and Alaska have oil and minerals. Texas also has a high sales tax. Washington state's sales tax ranges from 7-10%, depending on the county. Nevada has gambling. New Hampshire has a 9% meals tax (higher than New York city) and very high property taxes.
Keep the income tax, dump the sales tax.
CT created an income tax in the '90s in order to reduce the property tax burden. Guess what. After ten years, the property taxes have reached higher rates (inflation-adjusted) than before the income tax. And we now have an income tax to boot.
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