CLT
UPDATE
Tuesday, October 4, 2005
State revenue soars while pols still
play games
with voters' tax cut
Revenue Commissioner Alan LeBovidge today announced
that preliminary revenue collections for September were $1.940 billion,
an increase of $242 million or 14.3 percent over last September. It was
the biggest September on record and the second biggest collections month
ever, behind the $2 billion collected in April, according to LeBovidge.
Commonwealth of Massachusetts
Department of Revenue
Monday, October 3, 2005
September Revenue Total $1.940 Billion, Set Record
The Department of Revenue collected nearly $2 billion from
Massachusetts taxpayers in September, setting a new record and prompting Gov.
Mitt Romney to re-issue his call for tax relief.
"It's pretty clear, Massachusetts is back and firing on all cylinders," Romney
told reporters he called inside his office after learning about the revenue
numbers.
Receipts for the month of $1.94 billion exceeded last September's collections by
14.3 percent, or $242 million, and provided proof that sales and use taxes grew
despite a two-day sales and use tax holiday in August designed to boost consumer
buying and the economy....
Romney said the numbers show it's time to deliver on an income tax rollback
approved by voters in 2000....
"We can't keep walking around the building with long faces like things are
terrible," Romney said. "They're not. The economy is back."
But legislative leaders and some interest group leaders said a tax cut is
premature....
"We need to look at September's revenue collection numbers for what they are -
an encouraging sign, but certainly not cause to dramatically alter course,"
House Ways and Means Chairman Rep. Robert DeLeo (D-Winthrop) said in a
statement....
The September collections marked the second largest monthly take ever, surpassed
only by the $2 billion collected this past April. For the first three months of
this fiscal year, state tax collections are up 7.9 percent, and are beating
budget benchmarks by $194 million.
Romney also announced that the state has collected $1.215 billion above what
lawmakers budgeted in fiscal 2005. Meanwhile, the state's stabilization fund is
nearing its highest level ever, just $5 million shy of its peak in 2002....
Some in the business community say a strong first quarter doesn't mean the state
can afford to cut the income tax.
"We're only three months into the fiscal year," said Michael Widmer, president
of the business-backed Massachusetts Taxpayers Foundation. "Regardless of the
'05 surplus and '06 numbers, any income tax cut is a permanent change."
Widmer suggested that the state should first help residents in cities and towns
where property taxes are soaring....
To date, lawmakers have spent $178 million of the fiscal '05 surplus in
supplemental appropriations to shore up accounts and fund union contracts. They
have also transferred $827 million to the Rainy Day fund, and have an additional
$270 million in a separate account to be spent later, Romney said.
State House News Service
Monday, October 3, 2005
September tax collections surge,
stir debate anew over spending priorities
Critics may question whether Salvatore F. DiMasi has
accomplished much in his first year as Massachusetts House speaker, but one
thing is certain: He has dramatically improved his golf game.
According to United States Golf Association records, DiMasi has golfed at least
19 times since May, including 11 weekday outings, and he has lowered his
handicap from 8.1 to 5.7 in that time. Most of the work days that DiMasi left
the State House to golf were Fridays, the records show.
USGA officials say DiMasi's marked improvement shows his dedication to the
game....
DiMasi improved his game as House Democrats are grumbling increasingly over the
speaker's absences and lack of contact with members of the House....
Barbara Anderson, executive director of Citizens for Limited Taxation,
said she wouldn't mind the golf outings if in the interim the Legislature had
succeeded in passing a comprehensive healthcare bill, a measure altering the
state's auto insurance system, or one lowering income taxes.
"If you're getting the job done that you're paid to do, you can take off as much
time as you like," Anderson said.
Tim O'Brien, executive director of the state GOP, criticized DiMasi as well,
using the occasion to repeat the GOP's call for a rollback in the income tax
rate. "At this rate, his handicap's going to reach 5 before the tax rate does,"
O'Brien said.
The Boston Globe
Tuesday, October 4, 2005
DiMasi finds time for golf
Lowers his handicap despite busy calendar
Chip Ford's CLT Commentary
Sixteen years, a second economic boom with revenue
again pouring in, and a voters' mandate five years ago, but still the
Beacon Hill Cabal refuses to part with the last vestige of the promised
"temporary" income tax hike of 1989 -- now surely out of simple
arrogance. The Legislature refuses because legislators believe
they can ignore voters with impunity.
"To date, lawmakers have spent $178 million of the
fiscal '05 surplus in supplemental appropriations to shore up accounts
and fund union contracts. They have also transferred $827 million to the
Rainy Day fund, and have an additional $270 million in a separate
account to be spent later."
Still they fabricate nonsense excuses and cite "unmet
needs" for why "we can't afford a tax cut, yet" -- as they again hold up
that fig leaf of false hope as though they intend to one day return our
money.
But not Michael Widmer of the so-called Massachusetts
Taxpayers Foundation. Widmer's still out front leading the parade
for more, more, more of our money. "Regardless of the '05 surplus and
'06 numbers, any income tax cut is a permanent change," he bemoans.
He could say the same -- with more credibility -- if he spoke of
"temporary changes," like tax hikes; or if he was honest enough to say
what he means: Regardless of the surpluses, we should never cut
taxes on the unwashed masses by any amount; instead, give it to my Fat
Cat Big-Business members!
Massachusetts "collected nearly $2 billion from
Massachusetts taxpayers in September, setting a new record." but still
Beacon Hill can't afford to keep its promise from sixteen years ago.
Coat-holders, yes-men (and women), and playboy
golfers. The leader of our state's "full-time" House of
Representatives in "The Best Legislature Money Can Buy," besides coming
up with lame excuses to deny the voters' mandate to finally roll back
the almost-ancient "temporary" income tax, is fully engaged with
improving his golf handicap at taxpayers' expense. After taking
off the entire summer, and doing very little throughout the months
preceding it, Speaker DiMasi has been preoccupied on the links polishing
up his golf game.
It's becoming more like the France of King Louis XVI,
Marie Antoinette, and their entitled lifestyle at the Palace of
Versailles ("Let them eat cake") -- before the French revolution and its
guillotine abruptly ended their reign of privilege and oppression.
We citizens need one more state holiday here, a day during which all
Bacon Hill pols stay home behind locked doors. Replace the Fourth of
July, Independence Day in the rest of America: it's meaningless
here in the People's Republic. We lost any semblance of
independence long ago and must reassert it, earn it again. We need
our own Bastille Day and "off with their heads!"
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Chip Ford |
Commonwealth of Massachusetts
Department of Revenue
Monday, October 3, 2005
September Revenue Total $1.940 Billion, Set Record
Revenue Commissioner Alan LeBovidge today announced that preliminary
revenue collections for September were $1.940 billion, an increase of
$242 million or 14.3 percent over last September. It was the biggest
September on record and the second biggest collections month ever,
behind the $2 billion collected in April, according to LeBovidge.
Total tax collections for the third month of fiscal 2006 were $177
million above the September benchmark. Year-to-date collections were
$4.334 billion, an increase of $317 million or 7.9 percent. After three
months, fiscal '06 collections are $194 million above the benchmark.
"Collections were strong, particularly in corporate and business taxes
and in estimated payments made for income tax," LeBovidge said. "No
matter how you slice it this was a very good first quarter."
Despite a two-day sales tax holiday in August, sales and use tax
collections in September were higher than last year and slightly below
the benchmark. August sales and use tax collections are reported and
paid by retailers in September. The true impact of the Sales Tax Holiday
Weekend will not be known until December when DOR completes its
analysis.
Income tax collections for September totaled $1.025 billion, an increase
of $117 million or 12.9 percent over last September. Withholding tax
collections totaled $627 million, an increase of $48 million or 8.2
percent. Sales and use tax collections were $326 million, up $11 million
or 3.4 percent. Corporate and business tax collections totaled $433
million, an increase of $113 million or 35.2 percent over last
September.
Year-to-date income tax collections were $2.341 billion, an increase of
$152 million or 7.0 percent. Year-to-date withholding tax collections
were $1.900 billion, an increase of $91 million or 5.1 percent. Year-to-
date sales and use tax revenues were $1.050 billion, an increase of $53
million or 5.3 percent. Year-to-date corporate and business tax
collections were $502 million, an increase of $128 million or 34.3
percent.
Return to top
State House News Service
Monday, October 3, 2005
September tax collections surge,
stir debate anew over spending priorities
By Cyndi Roy and Michael P. Norton
The Department of Revenue collected nearly $2 billion from Massachusetts
taxpayers in September, setting a new record and prompting Gov. Mitt
Romney to re-issue his call for tax relief.
"It's pretty clear, Massachusetts is back and firing on all cylinders,"
Romney told reporters he called inside his office after learning about
the revenue numbers.
Receipts for the month of $1.94 billion exceeded last September's
collections by 14.3 percent, or $242 million, and provided proof that
sales and use taxes grew despite a two-day sales and use tax holiday in
August designed to boost consumer buying and the economy.
The September numbers are good news overall for state budget writers and
legislators, who are trying to restore services slashed during the
recent recession, build rainy day reserves, and create an environment
where tax cuts are more likely to receive bipartisan support.
Romney said the numbers show it's time to deliver on an income tax
rollback approved by voters in 2000. Voters statewide approved a ballot
law calling for the rate to be rolled back to 5 percent. The rate was
dropped to 5.6 percent, and then to 5.3 percent before the Legislature
froze the rollback in 2002 when state tax collections plummeted in
concert with a recession. The tax rate now stands at 5.3 percent.
Romney says the rollback would cost the state $220 million this year,
and close to $600 million in following years.
"We can't keep walking around the building with long faces like things
are terrible," Romney said. "They're not. The economy is back."
But legislative leaders and some interest group leaders said a tax cut
is premature.
Citing rising energy costs and the potential loss of a Medicaid funds
that would cost the state between $450 million and $600 million, Sen.
President Robert Travaglini (D-East Boston) said the state is unprepared
to issue a tax cut.
"We face a period of uncertainty financially and that I think it would
be prudent on our part to wait to entertain what the governor suggests
is in order presently," he said. "Before those variables take on a
value, I'm not willing to make any determination on a tax rollback and
it would be unwise to do so."
House budget writers also resisted the governor's latest call for tax
relief.
"We need to look at September's revenue collection numbers for what they
are - an encouraging sign, but certainly not cause to dramatically alter
course," House Ways and Means Chairman Rep. Robert DeLeo (D-Winthrop)
said in a statement. "Given a temperamental economy, rising energy
costs, and the fact we utilized $600 million from our Rainy Day fund to
balance this year's budget, it would be irresponsible to use today's
developments as a political device to undue the fiscal prudence we have
worked so hard to achieve."
The September collections marked the second largest monthly take ever,
surpassed only by the $2 billion collected this past April. For the
first three months of this fiscal year, state tax collections are up 7.9
percent, and are beating budget benchmarks by $194 million.
Romney also announced that the state has collected $1.215 billion above
what lawmakers budgeted in fiscal 2005. Meanwhile, the state's
stabilization fund is nearing its highest level ever, just $5 million
shy of its peak in 2002.
According to Romney, the stabilization fund balance now stands at $1.710
billion.
Sales and use tax receipts were up 3.4 percent, despite the two-day
sales tax holiday in August that was reflected in the September numbers.
Income tax collections were up 12.9 percent for the month, withholding
receipts rose 8.2 percent and corporate and business tax receipts shot
up 35 percent.
"No matter how you slice it this was a very good first quarter," Revenue
Commissioner Alan LeBovidge said.
Some in the business community say a strong first quarter doesn't mean
the state can afford to cut the income tax.
"We're only three months into the fiscal year," said Michael Widmer,
president of the business-backed Massachusetts Taxpayers Foundation.
"Regardless of the '05 surplus and '06 numbers, any income tax cut is a
permanent change."
Widmer suggested that the state should first help residents in cities
and towns where property taxes are soaring.
In a corporate tax bill approved in July, the Senate unanimously passed
a plan to begin reducing the income tax once revenues return to fiscal
2002 levels. The House did not include the plan in its version of the
legislation, which is now being negotiated by the two branches.
House Speaker Salvatore DiMasi said lawmakers trying to determine what
to do with the surplus revenue.
"It's good news, it's good news for all of us," he said. "I like it. A
lot of the things that we're doing are helping out. We have a lot more
to do. I think people have confidence in that we're balancing our budget
and putting our revenues where we think can be beneficial. We have an
economic stimulus package coming up that people feel very good about.
That takes an investment. We have a health care plan that might costs us
some money. The energy package we just passed, too, is going to cost $80
million. These are all good causes. These are all good things to help
the Commonwealth and our citizens and I think the cities and towns as
our partners in government are also going to have something to say about
it, as well. So what we're going to do is, we're going to sit down and
try to analyze all this and figure out what's the best thing do."
DiMasi didn't respond to questions about whether an income tax cut
should be included in the proposals being discussed.
To date, lawmakers have spent $178 million of the fiscal '05 surplus in
supplemental appropriations to shore up accounts and fund union
contracts. They have also transferred $827 million to the Rainy Day
fund, and have an additional $270 million in a separate account to be
spent later, Romney said.
Return to top
The Boston Globe
Tuesday, October 4, 2005
DiMasi finds time for golf
Lowers his handicap despite busy calendar
By Raphael Lewis and Frank Phillips, Globe Staff
Critics may question whether Salvatore F. DiMasi has accomplished much
in his first year as Massachusetts House speaker, but one thing is
certain: He has dramatically improved his golf game.
According to United States Golf Association records, DiMasi has golfed
at least 19 times since May, including 11 weekday outings, and he has
lowered his handicap from 8.1 to 5.7 in that time. Most of the work days
that DiMasi left the State House to golf were Fridays, the records show.
USGA officials say DiMasi's marked improvement shows his dedication to
the game.
"It's pretty rare to drop more than two or three shots in a season, for
a low-handicap player," said Scott Hovde, a manager of handicapping and
course rating for the USGA. "They really have to do something more than
a few extra lessons. You have to practice weekly or daily or go through
a series of lessons. It's not very common."
Of all golfers with a handicap, fewer than one in 10 have a rating of 6
strokes or lower, said Amy Billups, another USGA handicapping manager.
DiMasi stands out among his political peers who logged their scores with
the USGA: Mayor Thomas M. Menino sports a 26.2 handicap, and US Senator
John F. Kerry's is 19.9.
DiMasi improved his game as House Democrats are grumbling increasingly
over the speaker's absences and lack of contact with members of the
House. DiMasi took three out-of-state trips in about a month at summer's
end. He was in Las Vegas last week, where he took in at least one
morning of golf during a conference, and went to Israel in August. He
also took a personal vacation to Ireland to hit the links.
While he was in Las Vegas last week, the House was working late on
Wednesday night on a bill to crack down on repeat drunk drivers. It
eventually passed a bill that was sharply criticized by advocates of
tougher measures.
The Globe obtained DiMasi's golf scores and the dates he played from the
USGA, which maintains a score database on the Internet. After a round of
golf, players submit their scores to the course where they played or
online with the USGA, recording their date of play, the course, and
their score.
The USGA applies a difficulty factor to the score and averages it with
other recent scores to arrive at the handicap, which is roughly how many
shots a player needs above par to complete an average round.
After reviewing DiMasi's schedule and the USGA records, Kimberly
Haberlin, the speaker's spokeswoman, said that on many of the dates in
question he worked in the morning and golfed in the afternoon. Haberlin
said DiMasi has missed a total of 6 1/2 work days to play golf since May
and on only three occasions spent the entire work day playing golf.
Regardless, she said, DiMasi's golfing did not distract from his work.
She said DiMasi and the House helped pass important legislation,
including stem cell research, welfare rule changes, and a state budget,
and restructured the House committee system. "There's a whole host of
accomplishments and an ambitious fall agenda, and we're talking about 6
1/2 work days here," she said.
"Next week, the House will debate an economic development package, and
the speaker will talk about ways the Legislature can advance healthcare
reform legislation," Haberlin said. "Those two initiatives alone will go
a long way toward improving the quality of life for Massachusetts
citizens, and I don't think these outings have any significance on what
we have accomplished or will accomplish."
Barbara Anderson, executive director of Citizens for Limited
Taxation, said she wouldn't mind the golf outings if in the interim
the Legislature had succeeded in passing a comprehensive healthcare
bill, a measure altering the state's auto insurance system, or one
lowering income taxes.
"If you're getting the job done that you're paid to do, you can take off
as much time as you like," Anderson said.
Tim O'Brien, executive director of the state GOP, criticized DiMasi as
well, using the occasion to repeat the GOP's call for a rollback in the
income tax rate. "At this rate, his handicap's going to reach 5 before
the tax rate does," O'Brien said.
In June, WCVB-TV ran footage of DiMasi and Senate President Robert E.
Travaglini playing golf on a Monday at a Marblehead tournament sponsored
by the Senate majority leader, Frederick Berry of Peabody, even as the
state budget remained unresolved.
Between 2002 and 2004, DiMasi's campaign spent nearly $9,000 treating
his colleagues to golf outings at Ipswich Country Club, according to
records at the state Office of Campaign and Political Finance. DiMasi
used the outings in part to build support to capture the speakership
last fall.
In 1994, long before he became speaker, DiMasi was forced by the state
Office of Campaign and Political Finance to repay $994 for a December
1992 golf trip to Puerto Rico that was paid for with campaign money.
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