Income tax opponents rally at Faneuil Hall

October 4, 2008 01:29 PM Email| Comments (0)| Text size – +

By Peter Schworm, Globe Staff

About 200 activists rallied at Faneuil Hall in downtown Boston today, urging voters to abolish the state income tax at the ballot box in November.

Supporters of Question 1, a measure that would eliminate the state's 5.3 percent income tax, denounced government spending as wasteful and excessive and said workers deserve to keep more of their wages in hard economic times.

"I'd rather see the people keep their money than sending it Beacon Hill," said Gerry Cardillo, 62, from Easton, who was stapling a placard to a post. "State spending is out of control."

If approved, the ballot measure would reduce tax collections by an estimated $12 billion, saving the average taxpayer about $3,700 a year.

Proponents say eliminating the tax would jumpstart the economy and make the state more attractive to families and businesses.

But critics say eliminating the tax, the source of about 40 percent of state revenues, would cause a fiscal disaster, drastically curtailing state services.

While a slate of supporters addressed a crowd inside the hall, others outside passed out T-shirts and bumper stickers. Supporters said the state could cut its budget without threatening vital services such as schools and public safety.

"I don't think the average person will see any difference," said activist Harold Wolfe, 59, of Framingham.

But some people had mixed feelings. Dan Goldstein, 35, of Natick said he would like to see the average taxpayer get a break, but he was worried that the measure would threaten his brother's teaching job.

"I know there's a lot mismanagement, but I haven't made up my mind yet," he said.

This week, Governor Deval Patrick announced substantial spending cuts because of lower-than-anticipated tax collections.

Led by the Committee for Small Government, the grassroots campaign faces strong opposition from education groups, chambers of commerce, and most political leaders. An opposition group, Coalition for Our Communities, is holding rallies to defeat the measure.

The measure calls for cutting the tax rate in half next year and abolishing it entirely the following year. It would eliminate the 5.3 percent tax on wages, end the tax on interest and dividends for those living on an annuity, and end a capital gains tax on house, business, and stock sales.

Nine other states have no income tax -- Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming, according to the Internal Revenue Service.

In 2002, a similar ballot measure gained 45 percent of the vote, a level of support that stunned many political observers.