NEWS RELEASE
December 14, 2011
A
68-Year Old "Temporary Tax" Hike?
For Immediate Release
From all indications
and recent reports, beleaguered taxpayers of Massachusetts are about to
receive a miniscule installment of the long-overdue income tax rollback.
This is the first reduction in nine years since the Legislature
overturned the voters’ 2000 mandate and in 2002 “froze” the income tax
rollback.
The income tax
rate was raised "temporarily, for 18-months" in 1989 — twenty-two years ago —
from its historic 5 percent. CLT put the rollback of the "temporary" income tax
hike on the 2000 ballot — eleven years after it was imposed "temporarily" —
where it won with 60 percent of the vote statewide.
The Legislature
"froze" the voters' mandate in 2002 at 5.3 percent with a promise to
lower it more — when fiscal conditions improved and certain economic
"triggers" were met.
Conditions
apparently never improved sufficiently, triggers were never pulled, the rate
remains at 5.3 percent where it was when the Legislature "froze" it — nine years
ago. It has yet to budge.
But it's
expected to finally nudge downward — a whole five one-hundredths of one percent
— on January 1st. Apparently that light trigger pull is unavoidable, and has
value by providing a certain if minimal amount of political cover.
At this rate
— a .05% decrease each nine years — the voters' 2000 mandate might finally be
accomplished, the 5 percent historic rate might eventually be reached —
forty-five years from now, in the year 2057.
We’re happy for
any tax cut whatsoever, but will any of us be alive to see the promise finally
kept?
Let this
definition of a "temporary tax hike" be duly noted in the annals of
Massachusetts government doublespeak: It translates into sixty-eight years, if
we're lucky.
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The Massachusetts "Temporary" Income Tax Hike Lie
Two-Plus Decades and Counting of a Broken Promise |
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1989 |
Jul. 26, 1989 |
Gov. Michael Dukakis signs "18-month temporary" income tax hike into
law, raising the 5% rate by 15% to 5.75%. |
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Dec. 6, 1989 |
CLT files sufficient signatures for ballot question to roll back
income tax rate and fee increases to 1988 levels. |
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1990 |
Jul. 20, 1990 |
Income tax rate raised to 6.25% immediately and will remain there
through 1991, when it is scheduled to drop to a permanent 5.95%
thereafter. |
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Nov. 6, 1990 |
CLT ballot Question 3 to cut income tax and fees is defeated by vote
of 60%-40%. |
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1992 |
Jan. 1, 1992 |
Income tax rate drops by .3%, from 6.25% to 5.95%. |
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1998 |
May 4, 1998 |
CLT income tax rollback petition blocked by teachers union. After
lengthy challenge court rules signatures 26 shy of required 64,928. |
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2000 |
Jan 1, 2000 |
With second CLT rollback petition heading for the November ballot,
income tax rate is dropped from 5.95% to 5.85%. |
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Nov. 7, 2000 |
Second rollback petition drive/ballot question wins by 60%-40% vote:
"Temporary" income tax hike to be rolled back from 5.85% to 5% over
three years. |
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2002 |
Jul. 19, 2002 |
Legislature "temporarily freezes" voters' income tax rollback
mandate at 5.3%. |
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2012 |
Jan. 1, 2012 |
5.3% income tax rate set to drop .05% to 5.25%. |
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2057 |
Jan 1, 2057 |
Projected date, at a reduction of .05% each 9-year period, when the
1989 "temporary" income tax hike is finally restored to its historic
5% rate. |
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Citizens for Limited Taxation ▪ PO
Box 1147 ▪ Marblehead, MA 01945
▪ 508-915-3665
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