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CLT UPDATE
Thursday, September 30, 2010

So-called MTF, the Trojan Horse, strikes again


 

"It is not an exaggeration to say that the resulting massive spending cuts would eliminate or erode a wide range of services -- from education and public safety to health care and human services -- that for decades the citizens of Massachusetts have counted on the government to provide," said the report by the business-backed Massachusetts Taxpayers Foundation.

The Boston Globe
Wednesday, September 22, 2010
Report warns of dire consequences from Question 3 tax-cut proposal


“People may save in one pocket, but it will come out of another one,” [MTF] president Michael Widmer said.

The proposal to cut the sales tax to 3 percent comes amid the worst fiscal crisis in the state’s history - with the state facing a $2 billion shortfall in fiscal 2012 that would balloon to $4.5 billion if voters approve the measure, the fiscal watchdog group said.

The Boston Herald
Thursday, September 23, 2010
Sales-tax fight shunned
Business groups not backing rollback


Chip Ford's CLT Commentary

It's gratifying to see that after CLT's years of effort at exposing it, its membership and resources at last MTF is now at least identified as "business-backed" instead of "highly respected" which was the common reportorial adjective often used in the past.

The so-called Massachusetts Taxpayers Foundation has been campaigning to crush citizen initiatives to cut taxes for over three decades. It opposed Proposition 2½ in 1980, our repeal of the Dukakis tax hikes in 1990, the income tax rollback in 2000, and every tax cut ballot question since. No surprise that it now opposes cutting the sales tax, since it has advocated expanding that sales tax to services over the years.

Tax-hiking legislators can depend on MTF, the Trojan Horse, to give them cover as they raise taxes and fight tax cuts for average, regular, everyday taxpayers like us.

So it’s correct to list MTF as an opponent of Question 3 along with the public employee unions and most politicians, as long as everyone realizes that this is not unusual, and that just because it has the word Taxpayers in its name, it doesn’t represent us.

Chip Ford

The above commentary went out this afternoon to the media statewide as a news advisory.

Read the MTF report and news release, "Question 3: Heading Over the Cliff"


 

The Boston Globe
Wednesday, September 22, 2010

Report warns of dire consequences from Question 3 tax-cut proposal
By Martin Finucane


Thousands of Massachusetts teachers, police officers, firefighters, and other municipal employees would have to be laid off, property taxes would rise, and students at the University of Massachusetts, state colleges, and community colleges would see higher charges, if a proposal to cut the state's sales tax passes, according to a new analysis by a respected budget watchdog group.

"It is not an exaggeration to say that the resulting massive spending cuts would eliminate or erode a wide range of services -- from education and public safety to health care and human services -- that for decades the citizens of Massachusetts have counted on the government to provide," said the report by the business-backed Massachusetts Taxpayers Foundation.

Question 3, which will go before voters on the Nov. 2 ballot, would reduce the state sales tax rate, which stands at 6.25 percent, to 3 percent as of Jan. 1. Proponents say it would curb overspending by the state, create jobs, and give each taxpayer nearly $700 annually, while opponents say it would force catastrophic cuts in services.

The MTF, in its report, "Question 3: Heading Over the Cliff," said that cutting the tax would create a $2.5 billion deficit, in addition to a $2 billion deficit that is already expected due to lagging revenues in the tough economy.

With half of the state's $32 billion budget legally required, the $4.5 billion in reductions would have to be spread over $16.9 billion in discretionary spending. That would mean across-the-board cuts of 28.4 percent, the foundation said.

The foundation said in its statement that the cuts would "seriously compromise the core services provided by local government – education and public safety" and would fall most severely on cities and poorer communities.

Carla Howell of the Alliance to Roll Back Taxes, which is advocating for the cut, said in a statement that the report was a "comedy" that ignored "tens of billions of dollars in government waste, pork, patronage, overspending and sweetheart deals" in the state budget.

She said the foundation, which she described as a "business lobby group," had shown its "contempt for the everyday taxpayers who have had to cut family budgets by 20% and more while politicians lavishly grew state spending."


The Boston Herald
Thursday, September 23, 2010

Sales-tax fight shunned
Business groups not backing rollback
By Donna Goodison


Even groups representing businesses that would benefit from a sales tax cut can’t muster support for a controversial ballot question that would roll back the rate to 3 percent.

The Retailers Association of Massachusetts, which lobbied hard against last year’s state sales tax increase to 6.25 percent, is staying out of the fight for Question 3.

“When you have 3,500 members, you’re going to have a lot of different opinions,” said Jon Hurst, president of the statewide retail group. “We couldn’t reach an agreement to be actually out front in supporting the initiative.”

Instead the trade group will push Beacon Hill lawmakers to roll the tax back to 5 percent in the next legislative session.

The Greater Boston Chamber of Commerce actually opposes the ballot measure.

“We have a fragile economy, and it would carve a giant hole in the state budget of over $2.5 billion per year,” executive vice president Jim Klocke said.

That view gained traction yesterday when the Massachusetts Taxpayers Foundation forecast that the measure would result in higher property taxes for many communities because of dramatic cuts in state aid, as well as higher increases in state college tuition and fees.

“People may save in one pocket, but it will come out of another one,” president Michael Widmer said.

The proposal to cut the sales tax to 3 percent comes amid the worst fiscal crisis in the state’s history - with the state facing a $2 billion shortfall in fiscal 2012 that would balloon to $4.5 billion if voters approve the measure, the fiscal watchdog group said.

Necessary spending cuts would have enormous impacts on local schools, public safety and all of local government in addition to public higher education, human services and a wide range of other state programs, according to Widmer.

“We already have a huge hole, and this would create a mammoth hole,” Widmer said. “It’s unfortunate the proponents put forward simplistic solutions for complex issues. It’s an illusion to think you can cut $2.5 billion and preserve the services that the public expects.”

The Alliance to Roll Back Taxes, which collected signatures to put Question 3 on the ballot, is led by libertarian activist Carla Howell.

 

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