CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

 

NEWS RELEASE
Thursday, April 10, 2003

House Ways & Means Committee budget


– MEMO –

To:  Members of the Massachusetts House
         April 24, 2003
Re:  House Ways & Means Committee Budget

We are happy to hear that the majority of House members is not planning to raise taxes this year. We take it as a hopeful sign that the commonwealth may survive this latest fiscal crisis without permanent damage to its economy.

The Mass. Teachers Association, the Mass. Municipal Association, the Mass. Taxpayers Foundation, and others want you to vote to raise our taxes, as they support pay raises for their members (MTA), take credit for local spending projects (MMA), and try to avoid taxes on the businesses that fund them (MTF) while promoting deficit borrowing that may profit its members.

MTA and MMA are spending a lot of money on radio and TV ads to push you into raising taxes. MTA refers to "the Armageddon budget" as if it somehow equates with the end of the world. We think this absurdity, and the annual whining from these organizations, turn the public off, and we can think of better places to invest the ad money. We notice that few taxpayers chose the higher rate option on their state income tax forms, and that 45% favored outright abolition of the state income tax last year.

But if you raise taxes again this year, instead of downsizing, you will have to again raise taxes next year, and in ensuing years. As with weight gain, there is no upper limit. Eventually -- like it or not -- you must reform and restructure. It won’t get any easier later, when the economy has been further damaged by more taxes.

The Massachusetts tax burden, per capita, is 5th highest in the nation. Spending per capita is 6th highest. Education spending, per student, is 5th highest too.

Tax Freedom Day here is May 2nd, the second-latest date of all the states. Massachusetts citizens pay 33.6% of their personal income in total federal, state and local taxes, more if one counts indirect taxes and fees. They pay more than most Americans for housing costs. Their property taxes, water and sewer bills, utilities and automobile expenses are rising. And many of them are leaving for other states, which also spent too much during the ‘90s but do an overall better job of controlling taxes than Massachusetts.

Health care costs are rising too; this situation will not improve as the Boomers age. 

Massachusetts can no longer afford "business as usual." This fiscal crisis gives you the opportunity to fix state government and make it work for people who really need it. We wish you well during your budget debate.


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