CITIZENS   FOR  LIMITED  TAXATION
and the
Citizens Economic Research Foundation

CLT UPDATE
Thursday, March 20, 2008

Prop 2½ still survives,
while hypocrites again decline voluntary tax option


Leave it up to the state Legislature to dangle a poisoned carrot in front of the starving horse.

In this case, the tainted carrot is a special abatement for senior citizens who will be exempted from paying taxes on Proposition 2½ overrides. The starving horse represents many Massachusetts communities that are only too willing to get senior citizens out of the picture when it comes to voting on Proposition 2½ overrides....

We hope the Senate has the good sense to kill this carrot and save the horse from choking on another dubious giveaway.

A Lowell Sun editorial
Saturday, March 1, 2008
Tax discrimination is no relief at all


The issue of passing a Proposition 2½ tax override frequently turns divisive when it comes up in cities and towns across the state.

In the case of the recently passed Massachusetts House legislation to exempt qualified seniors from paying tax increases due to Proposition 2½ overrides, the same has proven true.

The Newburyport Current
Thursday, March 13, 2008
Port leaders say senior override exemption needs work


The important principle of Proposition 2½ as it is now written is that all taxpayers have a stake in the outcome of the vote. Exempting one demographic group defeats the purpose of the law and is potentially divisive for the community....

As of now, the bill has gone to the Senate where it may not even come up for a vote because of the public outcry over the proposed changes to Proposition 2½. We can only hope that the Senate will keep Proposition 2½ as is....

As a former state representative who is familiar with the workings of Beacon Hill, I know that if they begin tinkering with Proposition 2½ now, eventually it will be so watered down that it will be a useless tool to keep taxes under control.

The Norton Mirror
Thursday, March 13, 2008
Barrows voted to save Prop 2½,
not abandon seniors

Letter by Virginia M. Coppola


“I’m not sure that this is going to come up (before the Senate), but right now, I’m not planning on voting for it,” state Sen. Michael Morrissey (D-Quincy) said. “I think that it’s an attempt to weaken the provisions of Proposition 2½. Ideas have to rise or fall on the merits, and something like this doesn’t seem to make a lot of sense. We’re all in this together. You would be pitting one group against another, so I think that would be divisive.”

The Braintree Forum
Monday, March 17, 2008
Bill would allow tax abatements for some seniors


The switch from the House to the Senate appears to suit Sen. Patricia Jehlen (D-Somerville). Last week the liberal lawmaker, who co-chairs the Elder Affairs Committee, said she won’t recommend Senate passage of a bill that would exempt elderly homeowners from tax hikes associated with Proposition 2½ overrides - which is nothing more than a cynical bid to keep the old folks away from the polls on override day (our words, not hers).

A Boston Herald editorial
Monday, March 17, 2008
New friend for homeowners


DiMasi rightly believes that before they assent to more taxes, the public wants to see the government mend its spendthrift ways. But to accomplish that, municipal officials are going to need his and other legislators' help.

Fortunately, DiMasi and his colleagues have a perfect opportunity to demonstrate to the public their willingness to help mayors and selectmen control costs. A bill passed last year would allow cities and towns to reduce their skyrocketing health insurance expenses by transferring their employees to the state Group Insurance Commission. Unfortunately under that bill, any such move can be vetoed by the municipal unions. And thus far those unions have shown no inclination to alter their present arrangements, which generally provide their members with much better benefits at much lower costs than the average worker.

The Legislature needs to remove that union veto — otherwise known as a "poison pill" — from the law. The unions won't like it, but it will demonstrate to the public that lawmakers are indeed willing to help cities and towns get their costs under control.

A Salem News editorial
Monday, March 17, 2008
Put-up-or-shut-up time for DiMasi


As the pressure mounts on legislators to boost aid to cities and towns, House Speaker Salvatore DiMasi said the state should be more watchful of exactly how local leaders are spending billions of dollars.

“We are investing much in our cities and towns, and we should,” he said at a Greater Boston Chamber of Commerce breakfast forum. “But when they call for more, as they do every year in good and in bad times, we have a right to know why, and for what.” ...

Massachusetts Taxpayers Foundation President Michael Widmer questioned the need for greater oversight, noting that the administration’s Division of Local Services provides a similar function. He said the speaker’s idea would have more merit if it established an advisory board, as opposed to a watchdog.

State House News Service
Tuesday, March 18, 2008
Speaker suggests plan to scrutinize municipal,
spending, management


So far this 2008 tax season, fewer Bay Staters than ever before are checking off the box on their state income tax forms that allows them to pay at the old 5.85 percent rate, rather than at the 5.3 percent rate pushed through by heartless, mean-spirited conservatives.

As of Monday, 1.3 million state taxpayers have filed their 2007 returns. And of those, a mere 294 have decided to pay their . . . fair share. For the children.

The Boston Herald
Friday, March 14, 2008
Our bleeding-heart liberals get a leg up
on being tight-fisted

By Howie Carr


Chip Ford's CLT Commentary

There's nothing new to report on the House's attempted end-run around Proposition 2½.  Its bill still sits in the Senate waiting, but the chance of it being brought up or adopted there seems to look slim from what we're hearing and as you can read.

Meanwhile, with the air virtually sucked out of the State House these days over Gov. Patrick's resort casinos proposal, House Speaker Sal DiMasi is pushing for more municipal government accountability -- which of course the so-called Massachusetts Taxpayers Foundation opposes.  DiMasi is considering an audit of local spending to insure that state revenue isn't being squandered.  This is a good start.

Better yet will be when the Legislature finally amends its law and revokes the power of pubic employee unions to reject the state's Group Insurance Commission, provides municipal officials with the tools to reduce taxpayer-funded health insurance costs.

Income tax returns are coming in for another year.  Therefore, we can count on Boston Herald columnist and WRKO talkshow host Howie Carr to report on how many -- or few -- tax-and-spend hypocrites are electing our voluntary income tax check-off.  Each year since its adoption into law, there seems to be fewer and fewer who choose to pay it.

Chip Ford

 


The Lowell Sun
Saturday, March 1, 2008

A Lowell Sun editorial
Tax discrimination is no relief at all


Leave it up to the state Legislature to dangle a poisoned carrot in front of the starving horse.

In this case, the tainted carrot is a special abatement for senior citizens who will be exempted from paying taxes on Proposition 2½ overrides. The starving horse represents many Massachusetts communities that are only too willing to get senior citizens out of the picture when it comes to voting on Proposition 2½ overrides.

If the seniors are already promised an abatement from higher taxes, why would they vote?

As it stands now, seniors are the most reliable voters on town issues, often voting against proposals to pay higher taxes for operational matters.

Most communities see this as a bad thing. They shouldn't. Instead, they should work harder to convince seniors that tax dollars are being spent efficiently and with good purpose.

The Legislature should know better than to try to appease a certain constituency -- senior citizens -- while also creating disharmony and divisions among the community.

If approved by the entire Legislature, the abatement bill will pit young versus old and establish a special tax class of citizens. It is unfair to the entire community. In America, we work together, we don't exclude people, and we agree to pay our fair share of taxes no matter age, gender, color or creed.

Seniors who think this is a good idea, think again. Is it worth saving $100 on your tax bill to be subjected to taunts at Town Meeting like, "Seniors should be seen but not heard?"

This will happen as younger residents are asked to pick up more of government's tab.

This is not tax relief; it is tax grief.

The House recently passed this bill over the strong objections of five local lawmakers: Bill Greene of Billerica; Tom Golden and Dave Nangle, both of Lowell; Colleen Garry of Dracut and Robert Hargraves of Groton. They were correct.

We hope the Senate has the good sense to kill this carrot and save the horse from choking on another dubious giveaway.


The Newburyport Current
Thursday, March 13, 2008

Port leaders say senior override exemption needs work
By Meaghan Glassett and M. Renee Buckley


The issue of passing a Proposition 2½ tax override frequently turns divisive when it comes up in cities and towns across the state.

In the case of the recently passed Massachusetts House legislation to exempt qualified seniors from paying tax increases due to Proposition 2½ overrides, the same has proven true.

Newburyport Mayor John Moak, state Sen. Steven Baddour, D-Methuen, and Newburyport Council on Aging Director Rosanne Robillard each have their own take on the bill, which exempts citizens 65 and older from Proposition 2½ tax overrides if their household income is $60,000 or less and their property tax is at least 10 percent of their income.

All three also have qualms with the bill.

“I have mixed feelings about it,” Moak said Wednesday. “If you just wanted to find a way to get overrides to pass that may be helpful, but I don’t think that’s the way I’d want to present that.”

Proposition 2½ is the Massachusetts statute that limits property tax increases by municipal governments from increasing by more than 2.5 percent annually.

Moak explained that since the need for an override is tied to a variety of services across a city, he would want every citizen to be tied to the decision.

“I would want the entire community weighing in about it, even if it didn’t affect them tax-wise, because it could be about services,” said Moak.

“Also, it pushes that effect [of increased taxes] onto a smaller group of people,” he added.

Baddour said he’s not in favor of the legislation.

“I don’t think the bill was well thought out,” said Baddour. “I don’t support pitting young families against seniors, or seniors against young families.”

Baddour said the conflict arises when seniors are given an exemption from paying for an override to fund a project that benefits them. An example of this would be a senior center, he said.

Newburyport Council on Aging Director Rosanne Robillard said she agrees with Baddour, in part.

“I agree with the senator that it is not fair to single out seniors. However, I do think it would be nice for seniors to be able to defer payment,” she said. “I think it would be appropriate for the Senate to amend the bill allowing seniors to defer paying any increase to property taxes that were voted on through an override.”

Robillard explained that one day the community might want to build a senior center and an override would need to be on the ballot for that reason. She said she’d want seniors to be able to vote for such a project.

Feelings were markedly different in the House, though, as the bill passed with overwhelming support by a vote of 111-34.

The next step in the life of this legislation is for the bill to go to the Ways and Means Committee. The committee will then decide if the Senate will vote on the bill or if it will die there. If it does go on to the Senate there is no time frame that requires the Senate to vote on the bill; however, if the bill is not moved to the Senate by July, it will expire.

“This [process] will take time,” Baddour said.

When asked if he thinks the Senate would vote overwhelmingly against the bill, Baddour said, “I don’t think it will be overwhelming, but I don’t think it has enough support to pass.”

“If it does come up as a vote [in the Senate], I will vote against it,” he said.

Baddour said the House bill is seen as an attempt to make overrides easier for cities and towns to pass by getting seniors, who are often seen as an obstruction to their passage, to vote for them.

Robillard also believes seniors should be able to vote for any override. Seniors are known for voting and going to the polls, and she doesn’t think they should be exempt, she said.

Baddour said that most constituents who contacted him via phone and e-mail regarding the bill were opposed.

As for whether the seniors of Newburyport support or oppose this bill, Robillard said that is unclear.

“I am not aware the issue has been debated [in] the community,” she said.

Baddour added that during an event he attended with COA directors from across his district on Feb. 29, members of that group voiced concerns about the exemption bill. No one at the meeting supported it, he said.


The Norton Mirror
Thursday, March 13, 2008

LETTERS:
Barrows voted to save Prop. 2½, not abandon seniors
By Virginia M. Coppola


TO THE EDITOR:

It was interesting to read Dennis Naughton’s dramatic take on Rep. Jay Barrows’ vote against House Bill 2480. (“Barrows vote unsympathetic to seniors,” letters, March 7, Mansfield News) However, Dennis may not understand the full ramifications of this bill.

The bill was filed as an end-run to make a Proposition 2½ override vote more palatable to the voters of Newton in order to support additional funding for their Taj Mahal inspired new high school building. Put plainly and simply, House Bill 2480 is an attempt to begin the dismantling of Proposition 2½, which would adversely affect every property taxpayer in Massachusetts – young and old. Therefore, by opposing the legislation, Rep. Barrows did not abandon seniors. Rather, he voted against pitting one group against another and to uphold the current system that all the citizens of Massachusetts put in place to protect all property taxpayers.

If a Proposition 2½ override proposal is worthy of support, the voting public will do so, as happened in Weymouth last week when it was voted to build a new school and repair others. Likewise, if an override proposal is not good for the community, it will be rejected. The important principle of Proposition 2½ as it is now written is that all taxpayers have a stake in the outcome of the vote. Exempting one demographic group defeats the purpose of the law and is potentially divisive for the community.

As a former state representative who is familiar with the workings of Beacon Hill, I know that if they begin tinkering with Proposition 2½ now, eventually it will be so watered down that it will be a useless tool to keep taxes under control. Therefore, I think that Rep. Barrows and the other 34 representatives voted the right way.

As of now, the bill has gone to the Senate where it may not even come up for a vote because of the public outcry over the proposed changes to Proposition 2½. We can only hope that the Senate will keep Proposition 2½ as is.

Virginia M. Coppola
Foxboro


The Braintree Forum
Monday, March 17, 2008

Bill would allow tax abatements for some seniors
By Robert Aicardi


It’s not certain at this time how Braintree’s state senators will vote if the Senate takes up legislation that would allow cities and towns to permit some homeowners over the age of 65 to apply for an abatement of property tax hikes that result from any Proposition 2½ override.

On a 111-34 Feb. 28 vote, the state House of Representatives, with Rep. Joseph Driscoll (D-Braintree) in the minority, approved the bill.

Should it become law, seniors with a family income of less than $60,000 a year and whose annual real estate tax payments exceed 10 percent of their annual income would be eligible to apply for the abatement.

“I’m not sure that this is going to come up (before the Senate), but right now, I’m not planning on voting for it,” state Sen. Michael Morrissey (D-Quincy) said. “I think that it’s an attempt to weaken the provisions of Proposition 2½. Ideas have to rise or fall on the merits, and something like this doesn’t seem to make a lot of sense. We’re all in this together. You would be pitting one group against another, so I think that would be divisive.”

Sen. Brian Joyce (D-Milton) said that he is reviewing the bill and has not decided at this time how he would vote on it.

Driscoll explained why he voted against the bill, expressing sentiments similar to Morrissey’s.

“I perceived it as an attempt to water down Proposition 2½ and make it easier to pass overrides,” he said. “The practical effect of the legislation would be to burden a particular segment of the population, namely young families, with tax overrides.”

Driscoll added, “Proposition 2½ has worked for communities because the entire electorate has the opportunity to decide the tax structure of the community. The democratic process is available to senior citizens as well as young families, and important decisions like taxation should be made by the entire electorate.”

Backers of the bill said that offering the exemption would give cities and towns the power to decide whether to adopt it, arguing that it would help thousands of seniors who would like to remain in their homes despite their fixed income and climbing property taxes.

Pointing out that there are already precedents that offer tax breaks to seniors, they maintained that the proposal was fair.

Opponents of the bill, on the other hand, called the proposed exemption a ruse designed to lure more seniors to vote for overrides with the luxury of not having to pay higher property taxes.

They also raised the possibility that cities and towns could exempt seniors the first year and then take away the exemption in the future.

Material by Bob Katzen of Beacon Hill Roll Call was used in this story.


The Boston Herald
Monday, March 17, 2008

A Boston Herald editorial
New friend for homeowners


The switch from the House to the Senate appears to suit Sen. Patricia Jehlen (D-Somerville). Last week the liberal lawmaker, who co-chairs the Elder Affairs Committee, said she won’t recommend Senate passage of a bill that would exempt elderly homeowners from tax hikes associated with Proposition 2½ overrides - which is nothing more than a cynical bid to keep the old folks away from the polls on override day (our words, not hers). According to the State House News Service, Jehlen said seniors in her district find the bill “very divisive” and pointed out that many tax exemptions for seniors already exist.

Jehlen may be an unlikely ally in the bid to hold the line on taxes, but hey, taxpayers can use all the help they can get!


The Salem News
Monday, March 17, 2008

A Salem News editorial
Put-up-or-shut-up time for DiMasi


There's a big hearing up on Beacon Hill tomorrow at which legislators will learn the pros and cons of bringing casino gambling to Massachusetts.

As of the weekend, it appeared increasingly likely that House Speaker Salvatore DiMasi would have the votes to defeat the governor's plan to license three resort casinos. Some say a vote to settle the matter — at least for this year — could come as early as next month before the House starts putting together a state budget for the fiscal year that begins July 1.

DiMasi and others make some good arguments about why the Bay State should not become a haven for the gambling industry. Gov. Deval Patrick and those mayors who have joined his campaign, including Salem's Kim Driscoll, Beverly's Bill Scanlon and Peabody's Michael Bonfanti, on the other hand, see the casino proposal as a relatively painless means of raising new revenue.

As Scanlon pointed out during a serious moment at Friday's St. Patrick's Day roast in Salem, nobody else has come up with a better idea for getting the cities and towns more money.

Certainly cities and towns in the commonwealth are strapped for cash these days without any realistic means of raising more. But as DiMasi points out, mayors, selectmen and school committees have continued to grant pay and benefit increases to municipal employees that are well in excess of what they can afford given the limits of Proposition 2½.

This has resulted in a widening gap between public and private-sector compensation that has the average taxpayer thinking anything he pays in additional taxes will simply go to fund the next municipal contract, rather than improve his children's schools or fix his street.

DiMasi rightly believes that before they assent to more taxes, the public wants to see the government mend its spendthrift ways. But to accomplish that, municipal officials are going to need his and other legislators' help.

Fortunately, DiMasi and his colleagues have a perfect opportunity to demonstrate to the public their willingness to help mayors and selectmen control costs. A bill passed last year would allow cities and towns to reduce their skyrocketing health insurance expenses by transferring their employees to the state Group Insurance Commission. Unfortunately under that bill, any such move can be vetoed by the municipal unions. And thus far those unions have shown no inclination to alter their present arrangements, which generally provide their members with much better benefits at much lower costs than the average worker.

The Legislature needs to remove that union veto — otherwise known as a "poison pill" — from the law. The unions won't like it, but it will demonstrate to the public that lawmakers are indeed willing to help cities and towns get their costs under control.


State House News Service
Tuesday, March 18, 2008

Speaker suggests plan to scrutinize municipal,
spending, management
By Kyle Cheney


As the pressure mounts on legislators to boost aid to cities and towns, House Speaker Salvatore DiMasi said the state should be more watchful of exactly how local leaders are spending billions of dollars.

“We are investing much in our cities and towns, and we should,” he said at a Greater Boston Chamber of Commerce breakfast forum. “But when they call for more, as they do every year in good and in bad times, we have a right to know why, and for what.”

DiMasi said he is considering proposing a Municipal Audit Bureau to “analyze and report on local management practices and spending patterns.”

“The purpose would be to identify the kinds of efficiencies the voters expect and provide an independent source of analysis and information for state and local policy-makers,” he said.

With economic indicators pointing toward a nationwide recession, the House agreed last week to a $5.26 billion local aid package for cities and towns in fiscal 2009, a $223 million, or 4.4 percent increase, over this fiscal year, about a fifth of the total state budget.

The increase outpaces expected state tax revenue growth of 3.8 percent.

During debate on the aid agreement, several leading Democrats, while promoting the total local aid they hope to deliver, said that cities and towns aren’t guaranteed to spend that money wisely.

Rep. Patricia Haddad argued that some communities “skimmed off” some of the dollars the state provides for education. Rep. Angelo Scaccia said communities “need to get tougher” on their own spending, calling their desire for more funds “unquenchable.” Scaccia noted that very few communities opted to participate in the state’s group health insurance plan even though it is projected to save them costs.

“They choked,” Scaccia said, citing the influence of local unions. “They didn’t want to save money.”

Massachusetts Taxpayers Foundation President Michael Widmer questioned the need for greater oversight, noting that the administration’s Division of Local Services provides a similar function. He said the speaker’s idea would have more merit if it established an advisory board, as opposed to a watchdog.

“It might be more productive to have this be a resource, a small group that can help local officials,” he said. “Small communities may not have the kind of talent they need [to spend effectively].”

Massachusetts Municipal Association officials could not be reached for comment.


The Boston Herald
Friday, March 14, 2008

Our bleeding-heart liberals get a leg up
on being tight-fisted
By Howie Carr


The bluer Massachusetts becomes, the stingier its ever-growing liberal majority is getting when it comes to voluntarily giving money to the state.

So far this 2008 tax season, fewer Bay Staters than ever before are checking off the box on their state income tax forms that allows them to pay at the old 5.85 percent rate, rather than at the 5.3 percent rate pushed through by heartless, mean-spirited conservatives.

As of Monday, 1.3 million state taxpayers have filed their 2007 returns. And of those, a mere 294 have decided to pay their . . . fair share. For the children.

That works out (I think) to about one-40th of 1 percent. And those 294 chumps - I mean, concerned citizens - have generated a mere $27,944 in additional revenue, which means that the average income of the donors is approximately $10,000.

By my inexact calculations, that $28G number probably means that no one single Beautiful Person has filled in the oval on line 22 to pay at the more generous, Democrat-endorsed higher tax rate.

Last year, according to the state Department of Revenue, a mere 1,208 taxpayers out of 3.3 million paid at the higher rate, generating $162,024 in additional revenue.

That 1,208 number works out to .000366 percent of all Massachusetts taxpayers, which, as pathetic as it is, is still higher than the commonwealth appears destined for this year.

I am perplexed. After all, when the proposed income tax cut was on the ballot in 2000, more than a million Massachusetts residents voted to keep the income tax at its old, higher rate. Apparently they only wanted other people to have to pay the higher rate. You can’t blame the 60 percent of us who voted to cut our taxes for not paying. The other 40 percent, though - what’s up with you people? Do you think taxes are for somebody else to pay, but not you?

The Politically Correct always inform us, a tax cut “only” amounts to so much per week.

Well, two can play at the “only” game. If you make $50,000 a year, checking the box to pay at the higher rate “only” costs you $550 a year - “only” a sawbuck and change per week. Aren’t you willing to give up a large cheese pizza per week to make sure that David Bartley can continue collecting his $140,000 annual pension?

Liberals, look at it this way - it’s “only” your federal tax rebate that you’d be giving up.

Last year I challenged every politician to tell me if they were paying at the voluntary higher rate. One elected official called - Governor’s Councilor Mary-Ellen Manning. Now I hear the hacks on the North Shore have been looking around for someone to run against her in the Democratic primary. Obviously, she doesn’t quite fit in on Beacon Hill.

This week, I called the office of Gov. Deval Patrick and Lt. Gov. Tim Murray. They’re very, very liberal, which makes it very, very unlikely they’d give you the shirts off their backs. They’d prefer to steal somebody else’s shirt, and then give it to you, in a big ceremony with TV cameras at the State House. At deadline, no one from the Corner Office had called me back. The office of Senate President Terry Murray likewise did not respond to an inquiry about whether she’ll be paying the higher tax.

I did, however, receive an answer of sorts from House Speaker Sal DiMasi. His spokesman responded to my question in an e-mail:

“Howie - The Speaker said he’ll pay the higher rate if he can trade salaries with you. Otherwise, he will pay what he is required to pay under the current law.”

Again, I ask all politicians, especially those at the State House and Boston City Hall: Let me know if you’re paying at the higher rate, for the children. I won’t promise you a column, but I’d like to know, for the record.

When the phone don’t ring, I’ll know it’s all you liberals out there.


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