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CLT UPDATE
Wednesday, April 3, 2013
How much more does government need to take from us?
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Political newcomer and Republican Leah Cole has
stunned the experts again by winning the special election to fill
the state representative seat left vacant by the death of Joyce
Spiliotis.
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Representative-elect Leah Cole |
Cole, 24, did it in a three-way race that drew
less than 6,000 people and where no candidate collected more than
2,000 votes. She beat two well-known Peabody challengers, school
board member Beverley Ann Griffin Dunne, who had the backing of the
Democratic Party, and City Councilor David Gravel, who had pledged
to caucus with the Democrats.
City Clerk Tim Spanos released the unofficial
tally at 1,878 for Cole, 1,805 for Griffin Dunne and 1,655 for
Gravel.
“Leah! Leah! Leah!” packed supporters chanted as
the victor entered Champions Pub.
Standing on a chair in order to be seen, Cole
thanked her team and shouted, “We’re sending a message tonight to
Beacon Hill.”
Explaining her victory, she said, “I worked hard.
I met the people.” She acknowledged the odds she’d overcome, “I had
no name recognition. I was a first-time candidate.” But despite
that, she added, “My message resonated.”
That message, she declared, was first and
foremost opposition to taxes proposed by Gov. Deval Patrick. “Plus
the wasteful spending.” She cited news articles about the misuse of
welfare benefit cards. “People are just getting tired of it.”
Curbing the abuse of those EBT cards will be a prime concern as she
takes her seat.
The Salem News
Wednesday, April 3, 2013
Cole wins state rep election
In unofficial tally, Republican candidate bests Griffin Dunne by 73
votes
"The budget is
already at $33 billion; how much more do we need to spend to
accomplish the role of government? We have priority issues, and
we have a spending problem."
—
Rep.
Marc Lombardo, R-Billerica
The Lowell Sun
Wednesday, April 3, 2013
Lawmakers' revenue plan would hike gas, tobacco taxes
House and Senate leaders on Tuesday roundly
rejected Gov. Deval Patrick’s plan for $1.9 billion in new
transportation and education investments, rolling out a proposal
that instead asks business, tobacco users and drivers to pay $500
million more a year to stabilize the transportation system.
The plan - which would increase the cigarette tax
by $1 per pack and raise the gas tax three cents a gallon - provides
enough new revenue to close the MBTA budget gap without fare
increases or service cuts this year, but does not rule them out in
future years....
House Speaker Robert DeLeo and Senate President
Therese Murray, however, said concerns about overburdening the
middle class with tax hikes pushed them toward a scaled down
proposal that raises no new revenue for Patrick’s education agenda,
and does not include specific financing for the proposed expansion
of South Station, the extension of rail service to the South Coast
or for the Green Line extension to Medford.
The proposal also rejected Patrick’s idea of
recalibrating the state’s income and sales taxes to produce a more
“progressive” tax code that the governor said would ask wealthier
residents to contribute more without increasing the tax burden on
lower- to middle-class residents....
The proposal from Democratic legislative leaders
would generate $110 million in new revenue by increasing the state’s
21-cent gas tax by three cents in 2015, and indexing the tax rate to
inflation. Smokers would pay an estimated $165 million a year in
taxes through a $1-per-pack increase in the excise tax and other
tobacco taxes....
New taxes on businesses would account for about
half of the new revenue generated in the tax plan, including $161
million from the application of the sales tax to computer system
design services.
“... This is Massachusetts becoming one of the 35
states that now applies some form of sales tax to computer
services,” House Ways and Means Chairman Brian Dempsey said.
The proposal would also eliminate the state’s
“utility” tax classification, which Democratic legislative leaders
described as an “outdated” tax code provision, and would raise $35
million by changing the sourcing of sales for multistate
corporations and requiring out-of-state companies selling products
in Massachusetts to pay more....
House Minority Leader Brad Jones and Senate
Minority Leader Bruce Tarr said they do not think the Democrats
fully explored areas in the transportation budget for additional
savings and reform.
“While the Speaker and Senate President’s
proposal is dramatically smaller than the plan advanced by Governor
Patrick, we join our House Republican colleagues in taking issue
with the fact that broad-based tax increases are still being
proposed as a means to solving the Commonwealth’s transportation
financing needs,” Jones said in a statement, reissuing his call for
public hearings on the specifics of the House and Senate plan....
Despite being smaller than Patrick’s overall
proposal, Rep. Ryan Fattman, a Sutton Republican, said he’d be happy
if the new plan fails, suggesting that residents and government
alike must learn to “live between their means.”
“Right now with the way the economy is,
especially the people I represent, they can’t pay another cent.
They’re taxed beyond belief. They’re stretched very thin, and
dealing with a very difficult economy that is not on the mend and
not on the move,” Fattman told the News Service....
Citizens for Limited Taxation chief
Barbara Anderson said Massachusetts taxpayers will hit “tax
freedom day” on April 25, when taxpayers will have worked enough to
meet federal, state and local tax requirements.
If Massachusetts passes three other states, it
would have the latest tax freedom day among states. “At least
legislators haven’t gone back to that income tax pocket, yet we
don’t know what awaits us in next week’s budget,” Anderson said in a
press release.
State House News Service
Tuesday, April 2, 2013
Plan reignites debate over balancing tax burdens, transpo
investments
House and Senate leaders yesterday fired the
loudest shots so far in a brewing Beacon Hill battle over taxes,
tossing aside Gov. Deval Patrick’s $1 billion transportation
punch list and floating their own scaled back $500 million plan
— even as MBTA brass refused to rule out fare hikes if the
lawmakers’ proposal passes....
House Speaker Robert A. DeLeo and Senate
President Therese Murray unveiled a plan that would hike the gas
tax by 3 cents, increase the tobacco tax and alter the tax code
on computer software as part of a plan to generate more than
$300 million to invest in transportation by 2018.
It’s far less than Patrick’s $1 billion plan
that would raise the income tax and lower the sales tax to
subsidize new rail lines, among other projects.
“We cannot and don’t believe that we can
further squeeze the middle class,” Murray said....
Meanwhile, House Minority Leader Brad Jones
warned that DeLeo and Murray are trying to pull a fast one on
taxpayers.
“They may be saying, ‘Thanks, Governor,’
because you asked for $2 billion and we look extremely
reasonable going for $500 million,” said House Minority Leader
Brad Jones. “If the people of the commonwealth accept that
logic, they should fear for their wallets.”
The Boston Herald
Wednesday, April 3, 2013
Pols counter with $500M transport plan
But gov seeks $1B overhaul
Legislative leaders managed to pull off a
minor miracle yesterday. They made a $500 million annual tax
hike seem almost restrained, at least by comparison with Gov.
Deval Patrick’s out-of-this-world $2 billion tax-a-palooza.
Make no mistake — the plan floated by House
Speaker Robert DeLeo and Senate President Therese Murray will
increase the burden on individuals and businesses....
Patrick went big — with a 20 percent increase
in the state income tax and an offsetting reduction in the sales
tax to finance massive spending increases on transportation and education.
This plan instead adds 3 cents per gallon to
the gas tax (and indexes it to inflation), while adding a $1 per
pack increase in the cigarette tax, and focuses narrowly on
closing transportation deficits.
Of course there’s a risk of diminishing
returns with those levies but a more serious concern is the
expansion of the sales tax — the second-largest increase on the
table — to include software “modifications” as well as computer
system design services. That brings in $161 million in new
revenue....
The legislative plan appears to have
Patrick’s tax cheerleaders in a tizzy, which we confess we find
encouraging.
A Boston Herald editorial
Wednesday, April 3, 2013
Straight talk on taxes
Just when it looked like Gov. Deval Patrick
and his massive tax hike proposal were the best friends the
Republican Party could ever hope for, along come the House
speaker and Senate president with their own attempt to save the
Democrats’ bacon.
House Speaker Robert DeLeo and Senate
President Terry Murray yesterday rejected Patrick’s
government-spending boondoggle and the huge tax increase needed
to fund it.
Patrick can point to polls that show slightly
more people support his $3 billion tax hike/tax shift, class
warfare plan, but Beacon Hill legislators know that the half of
voters stuck paying the tab will be far more likely to actually
show up on election day than the ones who think it’s a great
idea.
And so DeLeo and Murray showed a united
front: $500 million in (ahem) “new investments,” paid for mostly
by smokers and businesses in the tech industry, and that’s it.
Rep. Brian Dempsey (D-Haverhill), chairman of the House Ways and
Means Committee, has already ruled out further tax increases
when the budget comes out of his committee....
Massachusetts conservatives bemoan the
one-party dominated political system, ruefully noting that
Democrats have the power to pass anything they want. And, it
appears, no matter how high the taxes or how egregious the
spending, voters will stick with the Democrats.
Apparently, DeLeo and Murray have more
respect for state Republicans than the GOP has for itself....
The AP reports that “Republicans were
skeptical that Democrats had exhausted all cost-saving options
before resorting to new taxes.” They’re right. Not only have
cost-savings options not been “exhausted,” they haven’t even
broken a sweat....
Then again, it’s still Massachusetts. From
the AP:
“Republicans, heavily outnumbered in both
branches, also called for a public hearing to be held before the
transportation plan was put to a vote, but a spokesman for the
Senate president said no hearing was planned.”
Voters need a Republican Party that’s at
least strong enough to get a hearing.
The Boston Herald
Wednesday, April 3, 2013
Power play saves day
By Michael Graham
Beacon Hill leaders announced a $500 million
transportation finance plan Tuesday that would raise gas,
tobacco, and business-related taxes to put the MBTA and regional
bus systems on firmer financial footing, but does not fund any
of the ambitious transit projects put forth by Governor Deval
Patrick....
Reaction to the lawmakers’ plan was varied.
State House Republicans said the bill raises taxes excessively
without sufficient cuts in spending, while advocates for
transportation expansion called the plan underfunded and
shortsighted....
At a State House press conference, Senate
President Therese Murray said legislators saw a need to be “a
little bit more cautious” than the governor. “This proposal
allows us to use revenues in the most responsible and efficient
way possible,” Murray said.
The House-Senate plan calls for raising the
state gas tax by 3 cents and indexing the rate to inflation
beginning in 2015, to bring in $110 million a year. That
increase, legislators said, would cost the average driver $12 to
$30 per year. Taxes would be increased on cigarettes, cigars,
and smokeless tobacco to raise an additional $165 million
annually.
Changes to the tax code affecting computer
services would raise an additional $161 million a year, while
changes to the tax code for utilities would raise $83
million....
In explaining the smaller tax increase, House
Speaker Robert A. DeLeo said he was worried that raising taxes
too much would have a detrimental effect on the state’s credit
rating....
House Republicans issued a statement
condemning the proposed tax increases and calling on DeLeo to
hold a public hearing on the proposal.
“By seeking to raise five separate taxes, the
speaker and Senate president have sent a clear indication that
they believe they have exhausted all options when it comes to
reforming our state’s transportation system," the statement
reads. “House Republicans don’t believe this to be true. In
fact, we believe numerous other areas of savings still exist.”
The Boston Globe
Wednesday, April 3, 2013
Mass. gets scaled-back transportation plan
Top lawmakers offer $500m finance program with narrower aims
than Patrick’s $1.9b agenda
Hours after it was unveiled by Speaker Robert
DeLeo Tuesday, House Democratic leaders opened a committee vote
on a $500 million tax bill with plans to launch debate on their
five-year transportation financing plan on Monday.
The timetable, according to House Ways and
Means, which also opened a poll Tuesday night on a $300 million
local road repair spending bill, calls for committee members to
vote on the bills by 10:30 a.m. Wednesday.
State House News Service
Wednesday, April 3, 2013
House Dems eye Monday for debate on tax bill
Last week the New Hampshire House of
Representatives voted to raise the gas tax by $1 billion. On
Wednesday the House is set to follow that with a 20-cent
increase in the tobacco tax. If you believed that Democrats just
wanted to raise taxes on "the rich," you have been misled.
If you smoke and drive and you voted for
Democrats in November because you wanted to "soak the rich," the
joke's on you, pal.
A Manchester (NH) Union-Leader editorial
Monday, March 18, 2013
Soaking the poor: House tax hikes continue
The Boston Herald
Wednesday, April 3, 2013
Editorial Cartoon by Jerry Holbert
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Chip Ford's CLT
Commentary
Every once in a while, if you find yourself
thinking "There's no hope" here in Massachusetts, along comes a
bright ray of inspiration. Today that ray arrived with the election of Leah
Cole, a libertarian-leaning Republican who won a special election
yesterday to become the next state representative from Peabody.
She's just in time to take her seat in the Legislature and add her
vote against further tax hikes.
As we reported in
our news release yesterday, the House and Senate leadership has
ignored Gov. Patrick's $1.9 billion grab-bag of tax-and-spending
increases and proposed its own tax package. I think we're supposed
to be grateful that half a billion more from us is less onerous than
the governor's proposed confiscation —
but even one cent more is too much.
Yesterday, while Bacon Hill bosses were announcing the
Legislature's next proposed tax hikes, the Tax Foundation released
its
2013 Tax Freedom Day report. Overall, we Americans are
working exclusively for government —
federal, state, and municipal — five
days longer than we did last year; until April 18th this year.
That's almost an additional week more of servitude before we can
stick the first dime we earn into our own pocket; 108 days into the
year before we can keep the first cent of what we earn after paying
the taxman.
Here in Massachusetts we must work an
additional week strictly for our state government (without the
perks and pensions of official state employees). We don't become
freemen until April 25th in Taxachusetts, three days later than last
year. We're the fourth-latest in the nation to escape our
indentured servitude, with only Connecticut, New York, and New
Jersey standing in our way to Number One. Or would that be
Number 50?
It's becoming more obvious that Bacon Hill is incapable of governing
effectively and efficiently, instead squandering immense tax revenues extracted from us
faster than they come into the state coffers. Apparently the pols
are going for the gold for the only record within reach
— The Last State in the Nation to Free its
Taxpayers. They're moving us closer to that goal;
last year our state was ranked 8th-latest, but they've
moved Massachusetts up to 4th-latest this year. That's celebrated as
progress on Bacon Hill!
On the day we learned how badly we in
Massachusetts are burdened by government, legislative leaders
announced their intent to add even more weight to our load
— "just" another $500 million.
More Is Never Enough (MINE) and never will be.
A quick three cents will be added to every gallon
of over-priced gasoline we put in our vehicles. That extra cost, like their "automatic" pay raises, will magically
increase all by itself, starting in 2015, without the pols ever
needing to take the unpopular and risky vote.
If this keeps up, soon we can just get rid of the
elected elite and put government on automatic pilot. For all the
good it does and for what it costs us, maybe that's a reform whose
time has come!
“The goal of these tax changes is to generate
sustainable new revenues that do not disproportionately impact one
area of the state,” the Transportation Finance Framework report
states. “The goal is also to ask those who derive the largest
benefit from improved transportation infrastructure — drivers and
the business community — to share in the burden of financing that
system.”
The plan then goes on to propose tax hikes on cigarettes and
computer software and services by $326 million. How do smokers and
computers put an excessive burden on the transportation
infrastructure or benefit from it more than others? And why are
drivers of their own privately-owned vehicles being taxed more to
further subsidize riders of public transportation services? Who
exactly are "those who derive the largest benefit"?
It's estimated that the taxes on computer
software and services would raise $161 million.
And there go the poor smokers again, always an
easy target of opportunity. They'll just stick them with another
buck a pack tax, and hope they keep smoking —
because if they ever quit the party's over!
Smokers in 2010
paid some $580 million in cigarette excise taxes. The state collects
about $243 million every year from the 1998 tobacco settlement
(funded by the tobacco companies' subsequent price increase). This latest proposed tobacco
excise tax hike
is estimated to rake in an additional $165 million from smokers
alone. When the additional 46¢ per pack
sales tax (about $92 million annually)
is added on this will bring the total state revenue — paid by
smokers alone — to well over a billion dollars a year, in
addition to other taxes they pay like the rest of us.
New Hampshire loves our Bacon Hill pols'
insatiable appetite for tax increases, especially this one. Whenever our
legislators hike the cigarette tax by a buck a pack here, the New
Hampshire citizen-legislature can squeeze another dime or two a pack
out of their state's smokers while keeping those cross-border sales
coming up from The People's Republic. The New Hampshire House
of Representatives recently passed a 20¢-per-pack cigarette tax
increase.
Not only will Massachusetts
lose even more cigarette sales and tobacco tax revenue to New Hampshire, but it stands
to lose its own positive cross-border sales and revenue from our more expensive
neighboring states to the south.
In the New England states, the tax on a pack of
cigarettes currently is:
$1.68 in New Hampshire
$2.00 in Maine
$2.51 in Massachusetts
$2.62 in Vermont
$3.40 in Connecticut
$3.50 in Rhode Island
With their respective proposed hikes in cigarette
taxes, New Hampshire will remain the lowest, while Massachusetts
will jump to the most expensive:
$1.88 in New Hampshire
$2.00 in Maine
$2.62 in Vermont
$3.40 in Connecticut
$3.50 in Rhode Island
$3.51 in Massachusetts
Who's the genius on Beacon Hill who came up with
this brilliant strategy? Whoever it was, they're paid way too
much — but then, that's usually a
given here.
According to the State House News Service report,
"The new taxes on tobacco and businesses would be used to replace
lost revenue in other areas of the budget." So what happens if and
when that "estimated $165 million a year" fails to materialize?
They'll be back to pick a different pocket, of
course.
Rep. Marc Lombardo (R-Billerica) gets it and so
do we:
"The budget is
already at $33 billion; how much more do we need to spend to
accomplish the role of government? We have priority issues, and
we have a spending problem."
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Chip Ford |
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The Salem News
Wednesday, April 3, 2013
Cole wins state rep election
In unofficial tally, Republican candidate bests Griffin Dunne by 73
votes
By Alan Burke
PEABODY — Political newcomer and Republican Leah Cole has stunned
the experts again by winning the special election to fill the state
representative seat left vacant by the death of Joyce Spiliotis.
Cole, 24, did it in a three-way race that drew less than 6,000
people and where no candidate collected more than 2,000 votes. She
beat two well-known Peabody challengers, school board member
Beverley Ann Griffin Dunne, who had the backing of the Democratic
Party, and City Councilor David Gravel, who had pledged to caucus
with the Democrats.
City Clerk Tim Spanos released the unofficial tally at 1,878 for
Cole, 1,805 for Griffin Dunne and 1,655 for Gravel.
“Leah! Leah! Leah!” packed supporters chanted as the victor entered
Champions Pub.
Standing on a chair in order to be seen, Cole thanked her team and
shouted, “We’re sending a message tonight to Beacon Hill.”
Explaining her victory, she said, “I worked hard. I met the people.”
She acknowledged the odds she’d overcome, “I had no name
recognition. I was a first-time candidate.” But despite that, she
added, “My message resonated.”
That message, she declared, was first and foremost opposition to
taxes proposed by Gov. Deval Patrick. “Plus the wasteful spending.”
She cited news articles about the misuse of welfare benefit cards.
“People are just getting tired of it.” Curbing the abuse of those
EBT cards will be a prime concern as she takes her seat.
Cole has a daunting task ahead of her in keeping the seat, as it’s
not likely she will again face a low turnout, three-way race
featuring a Democrat and a former Democrat. But she expects to win
over more voters in the weeks to come.
“My voting record will speak for itself,” she said. “I want to vote
the way people want me to vote.”
As in her upset primary victory over Greg Bunn, Cole’s effort was
supported by money and a fair number of people from outside Peabody,
including campaign manager Ryan Chamberland, a selectman in
Blackstone in Worcester County. Republicans saw the clash between
Griffin Dunne and Gravel as a way to split the Democrat vote and
pick up the seat.
Dustin Romiero, 17, of Douglas, who described himself as a friend of
Chamberland, was a campaign worker and part of the celebration.
“I met her (Cole) three months ago,” he said. “I call her one of my
friends.”
Closer to home, Peabody school board member Jarrod Hochman, chairman
of the Republican City Committee, declared, “It’s a great night for
the city and for the state. ... Now, she has to stand up for what
she ran on.”
The Cole victory was a particular shock at Griffin Dunne’s campaign
headquarters in the AOH. Tension grew as the numbers came in just
after the polls closed at 8 p.m. and were recorded on a board. Then
cheers went up as Griffin Dunne appeared to be taking a lead.
“All right,” she cautioned. “Every kid in college that’s taken math
— add ’em again. ... It’s close. It’s close. I don’t know what’s
going to happen, but hang in there.”
Managing to maintain a sunny exterior, Griffin Dunne thanked her
supporters after announcing, “It looks like Leah Cole has won.”
While she all but ruled out asking for a recount, she indicated that
she will try again. “In 2014, we’re coming right back here.”
“It is what it is,” Gravel said.
Friends streaming out of the Knights of Columbus Hall stopped to say
goodbye and offer him consolation.
“Good for her,” Gravel said of Cole, while suggesting that much of
her message, including low taxes, has little chance of success in a
Legislature packed with Democrats.
“We worked as hard as we could,” he continued. “I don’t know one
other thing we could have done. We ran a really positive campaign.”
He expressed a willingness to go right back to work on the City
Council.
The Lowell Sun
Wednesday, April 3, 2013
Lawmakers' revenue plan would hike gas, tobacco taxes
By Allison Thomasseau
After weeks of discussion, the Legislature's leadership released its
own plan for fixing Massachusetts' transportation system -- a $500
million package of tax increases on gasoline and tobacco that falls
far short of Gov. Deval Patrick's call for $1.9 billion in tax
increases for transportation and education.
"We need to invest, but we need to invest in a way that doesn't
bankrupt the current generation," Senate President Therese Murray,
D-Plymouth, said at a Statehouse press conference Tuesday.
The plan, put together by Murray, House Speaker Robert DeLeo and
their budget committee chairs, would raise the current gasoline tax
of 21 cents by 3 cents per gallon and boost the tobacco tax $1 per
pack to $3.51.
The proposal also allocates vehicle sales-tax revenue to
transportation projects, allows taxes on software and
computer-system design, and changes how utility taxes are
classified, allowing the state to collect more corporate taxes.
House and Senate leaders said the cigarette tax would raise $165
million in new revenue. Taxes on computer software would raise $161
million. The gas tax, which would be tied to inflation, would raise
$110 million, with the average driver paying $12 to $15 more each
year at the pump.
Senate Ways and Means Chair Stephen Brewer, D-Barre, said the
gas-tax increase "makes sense," but cautioned against using it as a
major source of revenue.
"If we rely on the gas tax too much, it would set the stage for a
transportation crisis in the years to come," Brewer said.
The House and Senate's $500 million revenue plan
would allow for $200 million in infrastructure investment and
expansion, although the proposal did not say which projects would
receive funding.
The House and Senate plan is significantly less than the $1 billion
in new transportation revenue Patrick proposed or the $800 million
in transportation revenue that Michael Widmer, Massachusetts
Taxpayers Foundation president, said the government would need to
fix the state's transportation infrastructure.
Patrick's plan would also use additional revenues to increase
education funding.
"This is more palatable to the public at large," DeLeo said.
Brewer said the legislative leadership adjusted the MBTA and
MassDOT's estimated funding gap from $653.3 million to $265.1
million by removing spending assumptions under the governor's
capital plan that called for expansion of MBTA's Green Line and a
South Coast commuter rail.
The legislative plan would also phase transportation personnel costs
into the operating budget.
Area legislators were divided on the plan.
Rep. Sheila Harrington, R-Groton, said in a phone interview that
broad-based taxes, such as the gasoline tax, are not always
equitable if they fund regional public transportation.
"The ridership should bear the cost of riding, not others," said
Harrington, who favors a 10-cent increase in T fares over the gas
and tobacco taxes.
Sen. Jamie Eldridge, D-Acton, said the proposed revenue was not
enough to fix the state's transportation problems.
"This proposal did not meet what I'm advocating for," said Eldridge,
who supports progressive taxes, such as the governor's proposed 1
percent income-tax increase from 5.5 percent to 6.5 percent.
The House and Senate proposal left the income-tax hike out, along
with the proposed sales-tax reduction from 6.25 percent to 4.5
percent.
Rep. Marc Lombardo, R-Billerica, called the House and Senate plan
"outrageous" and said the increased taxes were too high.
"The budget is already at $33 billion; how much more do we need to
spend to accomplish the role of government?" Lombardo said in a
phone interview. "We have priority issues, and we have a spending
problem."
State House News Service
Tuesday, April 2, 2013
Plan reignites debate over balancing tax burdens, transpo
investments
By Matt Murphy and Andy Metzger
House and Senate leaders on Tuesday roundly rejected Gov. Deval
Patrick’s plan for $1.9 billion in new transportation and education
investments, rolling out a proposal that instead asks business,
tobacco users and drivers to pay $500 million more a year to
stabilize the transportation system.
The plan - which would increase the cigarette tax by $1 per pack and
raise the gas tax three cents a gallon - provides enough new revenue
to close the MBTA budget gap without fare increases or service cuts
this year, but does not rule them out in future years. It also
allows the Massachusetts Department of Transportation by 2016 to pay
employee salaries without borrowing, and increases local road and
bridge repair aid by $100 million to $300 million in fiscal 2014.
House Speaker Robert DeLeo and Senate President Therese Murray,
however, said concerns about overburdening the middle class with tax
hikes pushed them toward a scaled down proposal that raises no new
revenue for Patrick’s education agenda, and does not include
specific financing for the proposed expansion of South Station, the
extension of rail service to the South Coast or for the Green Line
extension to Medford.
The proposal also rejected Patrick’s idea of recalibrating the
state’s income and sales taxes to produce a more “progressive” tax
code that the governor said would ask wealthier residents to
contribute more without increasing the tax burden on lower- to
middle-class residents.
“It addresses the most pressing problems by providing adequate
funding well into the future without asking our residents and
businesses to bear too much of the burden,” DeLeo said at a press
conference with Senate leaders to unveil a plan they’ll try to push
through the Legislature as an alternative to the governor’s
proposal.
Senate President Therese Murray said any additional spending on
education programs would be considered during normal budget
deliberations and House budget chief Rep. Brian Dempsey said there
would be no further revenue increases this year to invest in
education programs.
While the plan differs markedly from the one offered by Patrick, he
offered a measured response, telling reporters he hadn’t seen it yet
and then issuing a statement saying he needed more time to review
the details.
“I thank the House and Senate leadership for considering my plan and
look forward to thoroughly reviewing theirs. My principles continue
to be whether the financing is enough, dedicated and fair, and I
will review the Legislature's proposal in that light,” Patrick said
in a statement.
Transportation Committee Co-chairs Rep. William Straus and Sen.
Thomas McGee said deliberations over funding long-term expansion
projects like South Coast rail would play when the Legislature
eventually considers a transportation bonding bill, legislation that
authorizes spending but is not usually accompanied by revenue
sources.
“These discussions need to continue,” McGee said.
Lawmakers also said a more limited amount of funding – about $300
million by 2018 – would be available for capital expansion under the
legislative proposal.
“When we put out our $1 billion proposal number that was not full of
wish list items and whatnot. We went through a very serious
prioritization process," Transportation Secretary Richard Davey told
reporters at South Station. Davey said he was "unclear" how the $500
million would fund needed upgrades to MBTA subway cars, and said
people told him they are "concerned" about the ability of the state
to fund expansion projects.
Asked whether the smaller amount would be able to fund a new
commuter rail line to Fall River and New Bedford as well as Green
Line service through Somerville to Medford, two long-sought
projects, Davey said, “The Green Line Extension we have no choice.
We are legally obligated to do that.” Asked about the South Coast
rail, Davey said the project is Patrick’s “top priority” and the
administration is still “poring over" the $500 million proposal.
As House and Senate leaders briefed members on their plan Tuesday
morning, Patrick was at an event pressing for funding for longer
school days, particularly in underperforming urban districts.
Education Secretary Matt Malone said he wasn’t giving up on new
education revenue.
“It ain’t over till it’s over. So I’m hopeful that the good people
up here will do the right thing, and we’ve had some great
conversations,” Malone said. “I think people have heard us loud and
clear. I think people agree with us.”
The proposal from Democratic legislative leaders would generate $110
million in new revenue by increasing the state’s 21-cent gas tax by
three cents in 2015, and indexing the tax rate to inflation. Smokers
would pay an estimated $165 million a year in taxes through a
$1-per-pack increase in the excise tax and other tobacco taxes.
“We believe that using this small increase in the gas tax makes
sense, asking drivers to pay a little more while putting additional
money into Chapter 90 and regional transit authorities,” Senate Ways
and Means Chairman Stephen Brewer said, explaining that a driver who
travels 20,000 miles a year in a vehicle that averages 20 miles per
gallon would pay $30 a year more.
Brewer said fuel efficiency standards have led to an 18 percent
decrease in gas consumption over the last decade. “Placing too much
emphasis on the gas tax would simply set the stage for another
transportation funding crisis in the years to come,” Brewer said.
New taxes on businesses would account for about half of the new
revenue generated in the tax plan, including $161 million from the
application of the sales tax to computer system design services.
“This is not taxing the cloud or remote data storage. It’s not
taxing online downloads such as computer games, music or books. Nor
is it taxing innovation. This is Massachusetts becoming one of the
35 states that now applies some form of sales tax to computer
services,” House Ways and Means Chairman Brian Dempsey said.
The proposal would also eliminate the state’s “utility” tax
classification, which Democratic legislative leaders described as an
“outdated” tax code provision, and would raise $35 million by
changing the sourcing of sales for multistate corporations and
requiring out-of-state companies selling products in Massachusetts
to pay more.
“I like to think of this as agreeing with the governor, working with
the governor,” DeLeo said. “This is just a different method, if you
will, but I think we both achieve the same goal and that’s to raise
additional money for our transportation system.”
Murray said the Democratic leaders did not believe they should
“further squeeze” the middle-class with the level of tax increases
called for by the governor.
“We consider the governor a partner in this. He put out a 10-year
vision. We’re just saying maybe 10 years is too ambitious right
away,” Murray said, later adding in an interview with the News
Service, “It was hard to do the three cents, believe me, but we need
to invest in our infrastructure and transportation. I think that’s
doable. I think you can handle that.”
The plan unveiled Tuesday would dedicate revenue collected from the
increased gas tax and the motor vehicle sales tax to transportation,
netting roughly $500 million in additional transportation revenue at
the same time it eliminates the current system of funneling aid to
transportation. The new taxes on tobacco and businesses would be
used to replace lost revenue in other areas of the budget.
While the MBTA and MassDOT would be able to avoid fare or toll
increases in fiscal 2014, the proposal also asks that both agencies
contribute more to their own budgets over the next five years
through savings and efficiencies or new revenue. For instance, in
fiscal 2016 both agencies would be required to find an additional
$259 million to support their budgets, raising the possibility, like
Patrick’s plan, of periodic fare, toll and fee hikes.
Smaller amounts of money from casinos and contributions from
Massport or the Massachusetts Convention Center Authority are also
part of the Democratic leadership’s plan to address transportation
funding.
In addition to investing in Greater Boston transit, the proposal
calls for a boost in funding for regional transit authorities
operating outside Greater Boston in places like Springfield,
Worcester and Pittsfield. The proposal increases forward funding for
RTAs from $67.6 million this fiscal year to $80 million starting in
fiscal 2015, and indexes future increases to inflation.
House Minority Leader Brad Jones and Senate Minority Leader Bruce
Tarr said they do not think the Democrats fully explored areas in
the transportation budget for additional savings and reform.
“While the Speaker and Senate President’s proposal is dramatically
smaller than the plan advanced by Governor Patrick, we join our
House Republican colleagues in taking issue with the fact that
broad-based tax increases are still being proposed as a means to
solving the Commonwealth’s transportation financing needs,” Jones
said in a statement, reissuing his call for public hearings on the
specifics of the House and Senate plan.
In developing the plan, DeLeo has openly discussed his conflicted
feelings on tax increases. While many Democrats bristled at the
thought of voting for a major tax increase, others in both branches
from more liberal districts embraced Patrick’s full proposal.
“I think the proposal that we’ve seen from the House and the Senate,
while it does bridge some gaps, my initial read is that it falls
short relative to our long-term ambitions and a long-term
investment,” Sen. Dan Wolf (D-Harwich) said, indicating he did not
know if he could support the plan.
“I think it’s great that they’ve put out a proposal, but they
definitely seem open to dialogue and discussion and discourse. So I
don’t think by any means this is the final word,” Wolf said.
Andy Bagley, research director for the Massachusetts Taxpayers
Foundation, called it “eminent reasonably” for the Legislature to
delay decisions on major expansion projects while focusing on what
needs to be fixed now.
Chris Anderson, president of the Massachusetts High Technology
Council, said his organization is working on a study ranking the
competitiveness of Massachusetts against other states with similar
economies. He said the business community recognizes the advantages
of investing in transportation, and called the scaled-down House and
Senate leadership proposal a “positive thing” when compared to the
governor’s request.
While the change to the sales-sourcing section of the tax code will
benefit Massachusetts headquarters companies, Anderson said the new
sales tax on computer services could eliminate the state’s
competitive edge, even if it brings the state in line with state tax
systems.
“It certainly doesn’t align with the competitive objective if we’re
taking an area of the economy that we think can provide economic
growth and coming to the middle, giving up what could be an
advantage over other states,” Anderson said.
Kristina Egan, of Transportation for Massachusetts, said an
insufficient injection of revenues into transportation would mean
fewer new jobs, continued pressure on MBTA fares, and “stranded”
senior citizens.
“It’s woefully inadequate for the needs of the future,” Egan said.
Somerville Mayor Joseph Curtatone, a proponent of the governor’s
plan, said there were pieces of the proposal to be excited about,
such as funding for the RTAs, but was not yet “sold on it.”
“I’m concerned that it may be too low, however I do appreciate the
work that the Senate President and the Speaker have done. I think
it’s a positive step forward, and we can have a debate about that
number but need to make sure if we’re going to raise taxes we’re
going to solve the problem,” Curtatone said.
Though Patrick has pushed back against the suggestion that he’s
attempting to burnish his legacy with his tax reform proposal, the
governor has made clear that he thinks policy leaders will get one
shot at new revenue, unlikely to ask taxpayers for another increase
in the near future.
Lizzi Weyant, of Transportation for Massachusetts, captured that
sentiment when she said she was concerned about the state “starting
to lock ourselves into underfunding.”
“We don’t get that many opportunities to invest in a transformative
future for Massachusetts and this is it,” Weyant said.
Despite being smaller than Patrick’s overall proposal, Rep. Ryan
Fattman, a Sutton Republican, said he’d be happy if the new plan
fails, suggesting that residents and government alike must learn to
“live between their means.”
“Right now with the way the economy is, especially the people I
represent, they can’t pay another cent. They’re taxed beyond belief.
They’re stretched very thin, and dealing with a very difficult
economy that is not on the mend and not on the move,” Fattman told
the News Service.
According to the Massachusetts Fiscal Alliance, the cigarette tax
increase would move Massachusetts from ninth highest in the nation
to the second highest, behind New York, and the gas tax hike would
move Massachusetts from having the 29th highest gas tax in the
country, to the 24th highest.
"Massachusetts is the 2nd most expensive state, only behind Hawaii,
for the cost of doing business in the country. We rank as the 9th
most expensive state for the cost of living. Legislative leaders
need to rethink their plan and realize that increasing the gasoline
tax will only further hurt our economic standing," Paul Craney,
executive director of Massachusetts Fiscal Alliance, said in a
statement.
And there were signs Tuesday of competition for the new tax revenue.
Tobacco Free Mass applauded the call for higher tobacco taxes,
predicting lower smoking rates and lower health care costs as a
result, but said they’ll push to ensure some of the new revenue is
dedicated to tobacco control and wellness and prevention programs.
Citizens for Limited Taxation chief Barbara Anderson
said Massachusetts taxpayers will hit “tax freedom day” on April 25,
when taxpayers will have worked enough to meet federal, state and
local tax requirements.
If Massachusetts passes three other states, it would have the latest
tax freedom day among states. “At least legislators haven’t gone
back to that income tax pocket, yet we don’t know what awaits us in
next week’s budget,” Anderson said in a
press release.
Geoff Beckwith, executive director of the Massachusetts Municipal
Association, called the funding increase for Chapter 90 “timely and
essential,” and estimated that once MassDOT employees are moved off
the capital budget in 2016 there would be more than $500 million
available for expansion projects and maintenance.
“We applaud the leaders in the House and the Senate for announcing
an impressive plan,” Beckwith said.
U.S. Sen. Elizabeth Warren said she hoped the Legislature and Gov.
Deval Patrick would find some middle ground between their two
proposals, which she described as a "vision" and a "counter-vision."
“The governor laid out a plan, an ambitious plan for the entire
Commonwealth, and I give them a lot of credit for that. Some of the
leaders in the legislature have come back with a more modest plan,
but one that’s easier to pay for,” Warren told reporters at South
Station. “Somewhere in between, I hope they find the right place for
the future of this Commonwealth.”
The Boston Herald
Wednesday, April 3, 2013
Pols counter with $500M transport plan
But gov seeks $1B overhaul
House and Senate leaders yesterday fired the loudest shots so far in
a brewing Beacon Hill battle over taxes, tossing aside Gov. Deval
Patrick’s $1 billion transportation punch list and floating their
own scaled back $500 million plan — even as MBTA brass refused to
rule out fare hikes if the lawmakers’ proposal passes.
“A billion is a billion, and 500 million is 500 million, and that’s
half of what was the original request. Certainly, that has its own
consequences — what they will be, God only knows,” said MBTA General
Manager Beverly Scott.
House Speaker Robert A. DeLeo and Senate President Therese Murray
unveiled a plan that would hike the gas tax by 3 cents, increase the
tobacco tax and alter the tax code on computer software as part of a
plan to generate more than $300 million to invest in transportation
by 2018.
It’s far less than Patrick’s $1 billion plan that would raise the
income tax and lower the sales tax to subsidize new rail lines,
among other projects.
“We cannot and don’t believe that we can further squeeze the middle
class,” Murray said.
Secretary of Transportation Richard Davey said it’s unclear how
their strategy would address replacing the nearly 40-year-old subway
cars or fixing dozens of closed bridges.
“We weren’t kidding when we said there was a $1 billion problem,”
Davey said.
Meanwhile, House Minority Leader Brad Jones warned that DeLeo and
Murray are trying to pull a fast one on taxpayers.
“They may be saying, ‘Thanks, Governor,’ because you asked for $2
billion and we look extremely reasonable going for $500 million,”
said House Minority Leader Brad Jones. “If the people of the
commonwealth accept that logic, they should fear for their wallets.”
Advocacy groups that had pushed lawmakers for months to put more
money into transportation were disappointed.
“They basically chopped the governor’s package in half,” said
Kristina Egan of Transportation for Massachusetts. “Overall, the
package is woefully inadequate to meet the needs of our future.”
But DeLeo described the plan as being “more palatable to the public
at large” at a time when the state is still facing economic
problems.
“This not only translates into folks getting from one place to
another, it also translates into a better Massachusetts economy,”
DeLeo said.
Still, leaders will have to close a canyon-sized gap between the two
proposals, with the clock ticking.
The Boston Herald
Wednesday, April 3, 2013
A Boston Herald editorial
Straight talk on taxes
Legislative leaders managed to pull off a minor miracle yesterday.
They made a $500 million annual tax hike seem almost restrained, at
least by comparison with Gov. Deval Patrick’s out-of-this-world $2
billion tax-a-palooza.
Make no mistake — the plan floated by House Speaker Robert DeLeo and
Senate President Therese Murray will increase the burden on
individuals and businesses.
But their goal is clearly to rescue the failing finances of the
state’s transportation system and end such irresponsible practices
as paying highway workers with borrowed funds.
It is not, we’re happy to say, to finance every new project they
could conjure in their wildest dreams. Yep, that train from
Pittsfield to the Big Apple may just have to wait.
Of course it became clear months ago that to solve the
transportation financing problem, Democrats on Beacon Hill were
coming for our wallets. The only question left was how heavily the
plan would burden average taxpayers.
Patrick went big — with a 20 percent increase in the state income
tax and an offsetting reduction in the sales tax to finance massive
spending increases on transportation and education.
This plan instead adds 3 cents per gallon to the gas tax (and
indexes it to inflation), while adding a $1 per pack increase in the
cigarette tax, and focuses narrowly on closing transportation
deficits.
Of course there’s a risk of diminishing returns with those levies
but a more serious concern is the expansion of the sales tax — the
second-largest increase on the table — to include software
“modifications” as well as computer system design services. That
brings in $161 million in new revenue.
Supporters insist it does not amount to taxing “the cloud” in the
same way that Patrick’s plan did, still that change and the other
$83 million in corporate tax hikes come as business confidence in
Massachusetts remains stuck in neutral.
The legislative plan appears to have Patrick’s tax cheerleaders in a
tizzy, which we confess we find encouraging. And if it means
restoring long-term fiscal balance to the transportation system, it
is worth considering.
The Boston Herald
Wednesday, April 3, 2013
Power play saves day
Lawmakers fear Deval’s $3B tax plan
By Michael Graham
Just when it looked like Gov. Deval Patrick and his massive tax hike
proposal were the best friends the Republican Party could ever hope
for, along come the House speaker and Senate president with their
own attempt to save the Democrats’ bacon.
House Speaker Robert DeLeo and Senate President Terry Murray
yesterday rejected Patrick’s government-spending boondoggle and the
huge tax increase needed to fund it.
Patrick can point to polls that show slightly more people support
his $3 billion tax hike/tax shift, class warfare plan, but Beacon
Hill legislators know that the half of voters stuck paying the tab
will be far more likely to actually show up on election day than the
ones who think it’s a great idea.
And so DeLeo and Murray showed a united front: $500 million in
(ahem) “new investments,” paid for mostly by smokers and businesses
in the tech industry, and that’s it. Rep. Brian Dempsey
(D-Haverhill), chairman of the House Ways and Means Committee, has
already ruled out further tax increases when the budget comes out of
his committee.
In addition, all the new money is for transportation funding.
Nothing for Patrick’s proposed $900 million boost in education
spending.
Massachusetts conservatives bemoan the one-party dominated political
system, ruefully noting that Democrats have the power to pass
anything they want. And, it appears, no matter how high the taxes or
how egregious the spending, voters will stick with the Democrats.
Apparently, DeLeo and Murray have more respect for state Republicans
than the GOP has for itself.
Think about it: If the Republicans were magically given control of
Beacon Hill, would their budget counter-offer to Patrick have been
significantly different?
Republicans are still complaining, which is about the only thing you
can do when Democrats control 85 percent of the Legislature.
The AP reports that “Republicans were skeptical that Democrats had
exhausted all cost-saving options before resorting to new taxes.”
They’re right. Not only have cost-savings options not been
“exhausted,” they haven’t even broken a sweat.
MBTA spending still goes up. The ridiculous union contracts, massive
waste, etc. continue. But even in that area, Democrats made a
gesture toward reform.
The DeLeo/Murray proposal will require 34 percent of the MBTA budget
to be “ownsourced” (a hideous bit of bureaucrat-ese) by 2018, up
from 33 percent today. In theory, that could mean that the MBTA
would have to control spending so that new revenues paid a smaller
share of the total bill.
In fact it will mean higher fares for T riders — but again in
theory, it almost looks like an attempt to control spending.
Once again, not the “Let Them Eat Payroll Taxes!” arrogance of Deval
Patrick. It’s a level of political modesty that should give every
Massachusetts Republican hope. You may not think you can beat the
Democrats, but they at least still respect the GOP enough not to
take that chance.
Then again, it’s still Massachusetts. From the AP:
“Republicans, heavily outnumbered in both branches, also called for
a public hearing to be held before the transportation plan was put
to a vote, but a spokesman for the Senate president said no hearing
was planned.”
Voters need a Republican Party that’s at least strong enough to get
a hearing.
Listen to Michael Graham noon to 3 p.m. weekdays
on WCRN-AM
(830).
Follow him on Twitter
@IAMMGraham or at
www.michaelgraham.com.
The Boston Globe
Wednesday, April 3, 2013
Mass. gets scaled-back transportation plan
Top lawmakers offer $500m finance program with narrower aims than
Patrick’s $1.9b agenda
By Martine Powers
Beacon Hill leaders announced a $500 million transportation finance
plan Tuesday that would raise gas, tobacco, and business-related
taxes to put the MBTA and regional bus systems on firmer financial
footing, but does not fund any of the ambitious transit projects put
forth by Governor Deval Patrick.
House and Senate leaders’ scaled-down funding plan would probably
avoid the need for immediate MBTA fare increases. Patrick had argued
that his bigger $1.9 billion capital investment plan — financed by
an income tax hike, with money for schools, as well as roads,
bridges, and transit projects — is essential to the state’s economic
health.
Reaction to the lawmakers’ plan was varied. State House Republicans
said the bill raises taxes excessively without sufficient cuts in
spending, while advocates for transportation expansion called the
plan underfunded and shortsighted.
The legislators’ bill represents potential political failure for
Patrick, who staked much of his cachet in recent months on efforts
to shore up support for his proposal.
At a State House press conference, Senate President Therese Murray
said legislators saw a need to be “a little bit more cautious” than
the governor. “This proposal allows us to use revenues in the most
responsible and efficient way possible,” Murray said.
The House-Senate plan calls for raising the state gas tax by 3 cents
and indexing the rate to inflation beginning in 2015, to bring in
$110 million a year. That increase, legislators said, would cost the
average driver $12 to $30 per year. Taxes would be increased on
cigarettes, cigars, and smokeless tobacco to raise an additional
$165 million annually.
Changes to the tax code affecting computer services would raise an
additional $161 million a year, while changes to the tax code for
utilities would raise $83 million.
The House-Senate bill was also smaller in scope than a proposal
released last month by the Massachusetts Taxpayers Foundation, which
called for a more moderate approach to Patrick’s funding plan. The
organization estimated that $800 million per year would be enough to
prompt long-term changes in the transportation system, and many
transportation specialists had considered that estimate to be a
likely compromise.
The bill makes no mention of income or sales taxes, while Patrick’s
proposal had called on legislators to raise the state income tax
from 5.25 percent to 6.25 percent while cutting the sales tax from
6.25 percent to 4.5 percent.
The $500 million in new revenue, legislators said, would also
provide increased funding for snow and ice removal on the state’s
roads.
The plan would also make it possible, within the next three years,
for the state Department of Transportation and the Massachusetts Bay
Transportation Authority to stop the practice of borrowing money to
pay staff salaries and instead incorporate labor costs into annual
operating budgets, a dramatically expedited timeline from the one
Patrick proposed. His plan outlines a 10-year process to end the
practice of paying staff with borrowed funds.
Additionally, the bill would require that transportation agencies
meet targets set by legislators to increase revenue and identify
savings.
In explaining the smaller tax increase, House Speaker Robert A.
DeLeo said he was worried that raising taxes too much would have a
detrimental effect on the state’s credit rating.
“These were not easy decisions,” DeLeo said.
Legislators also steered away from relying too heavily on the gas
tax, which they said might be less reliable in future because of
more fuel-efficient vehicles and would disproportionately burden
drivers, as opposed to those who use public transit.
“Placing too much of an emphasis on the gas tax would simply set the
stage for another transportation crisis in the years to come,” said
Senator Stephen M. Brewer, Democrat of Barre.
The legislative plan does not include funds earmarked specifically
for capital investments such as the expansion of South Station or
rail service to Fall River and New Bedford, as Patrick’s plan had,
but legislators said they were not giving these projects short
shrift.
By putting the current Department of Transportation operating budget
on more stable financial footing, legislators said, the state will
better be able to fund large-scale expansion projects in the coming
years.
“The point is that to determine how much new investment we can
afford, we first need to know the cost of continuing the current
system,” Brewer said.
Ending MassDOT’s dependence on borrowing for labor costs in three
years, Murray said, would eliminate interest payments. That money,
she said, could be used in the future for large-scale capital
projects.
“We’re going to free that money up seven years earlier” than under
Patrick’s proposal, Murray said.
Representative William M. Straus, a Democrat from Mattapoisett and
House chairman of the Joint Transportation Committee, said ending
MassDOT’s dependence on borrowing money for labor costs will allow
infrastructure projects to get off the ground. “Capital expansion is
here,” Strauss said.
DeLeo and Murray bristled at the suggestion that their bill’s stark
departure from Patrick’s proposal was a vote of no-confidence in
Patrick’s vision.
“I like to think of this as just agreeing with the governor, working
with the governor,” DeLeo said. “This is just a different method, if
you will, but I think we both achieve the same goal.”
“He put out a 10-year vision, and we’re just saying maybe 10 years
is too ambitious right away,” said Murray.
Patrick said he planned to scrutinize the bill before offering a
critical response. “I thank the House and Senate leadership for
considering my plan and look forward to thoroughly reviewing
theirs,” he said.
House Republicans issued a statement condemning the proposed tax
increases and calling on DeLeo to hold a public hearing on the
proposal.
“By seeking to raise five separate taxes, the speaker and Senate
president have sent a clear indication that they believe they have
exhausted all options when it comes to reforming our state’s
transportation system," the statement reads. “House Republicans
don’t believe this to be true. In fact, we believe numerous other
areas of savings still exist.”
Senate minority leader Bruce E. Tarr said Republicans will work in
coming days to add measures to the bill that would require the
state’s transportation agencies to find further cuts in their
budgets.
“The framework announced today by the Senate president and the
speaker makes it clear that there is no legislative appetite for the
massive increases in taxing and spending proposed by the governor,”
Tarr said.
Advocates who had lobbied for increased taxes to fund transportation
projects in recent months, many of whom rallied outside the State
House Tuesday morning, said they were disappointed by the plan.
Kristina Egan — director of Transportation for Massachusetts, an
advocacy group that had pushed for Patrick’s funding plan — called
the proposal “woefully inadequate.”
“We have an unprecedented opportunity to make a transportation fix
for the next generation, and I’m worried that we’re squandering it
here,” Egan said. “It feels like this package is locking in chronic
underfunding.”
Richard A. Dimino — president of A Better City, a public policy
organization focused on transportation, land development, and
environmental policies in Boston — said the absence of capital
projects in the Legislature’s $500 million bill would mean that the
state would possibly lose federal money for projects such as the
Green Line extension.
Dimino also said he worried that the 3-cent gas tax increase is too
modest and that too much of the additional revenue for
transportation funding will come from the business community.
“While it’s a step forward, we’re not sure the numbers go far
enough,” Dimino said.
Michael Levenson contributed to this report.
State House News Service
Wednesday, April 3, 2013
House Dems eye Monday for debate on tax bill
By Matt Murphy
Hours after it was unveiled by Speaker Robert DeLeo Tuesday, House
Democratic leaders opened a committee vote on a $500 million tax
bill with plans to launch debate on their five-year transportation
financing plan on Monday.
The timetable, according to House Ways and Means, which also opened
a poll Tuesday night on a $300 million local road repair spending
bill, calls for committee members to vote on the bills by 10:30 a.m.
Wednesday.
The House plans a formal session on Wednesday, and a top Ways and
Means staffer said House leaders hope to advance both bills (H 3382
and H 3379) and refer the financing legislation to the Committee on
Bills in Third Reading in preparation for Monday's debate. The House
may also consider orders governing debate on the bills.
The proposal unveiled by DeLeo and Senate President Therese Murray
on Tuesday dedicates all motor vehicle sales tax revenue and a
3-cent increase in the state gas tax to transportation financing
needs, generating a net of $500 million in new annual revenue for
the MBTA, Department of Transportation and regional transit
authorities.
Gov. Deval Patrick had requested $1.9 billion in new revenue for
transportation and education from a more comprehensive tax code
overhaul. Legislative leaders dropped Patrick's plans to lower the
sales tax and raise the income tax and did not include a series of
other tax code changes the governor proposed to generate new
revenue. The move appears to imperil Patrick's planned major
investments in early, K-12 and public higher education.
The DeLeo-Murray proposal replaces funding lost from the general
budget that would be dedicated to transportation with a $1-per-pack
hike in the cigarette tax and a handful of new business taxes
expected to generate $244 million. The tax changes are included in H
3382, while H 3379 contains the Chapter 90 bond authorization.
The Manchester (NH) Union-Leader
Monday, March 18, 2013
A Union-Leader editorial
Soaking the poor: House tax hikes continue
Last week the New Hampshire House of Representatives voted to raise
the gas tax by $1 billion. On Wednesday the House is set to follow
that with a 20-cent increase in the tobacco tax. If you believed
that Democrats just wanted to raise taxes on "the rich," you have
been misled.
New York State has the highest cigarette tax in the nation. A study
commissioned by the New York Department of Health last year found
that the high taxes did not discourage smoking among low-income
smokers, ABC News reported last September. Rather, the poor just
paid more - as much as a quarter of their income - for cigarettes.
The study's author concluded that "low-income smokers are
disproportionately burdened by these taxes."
The Centers for Disease Control and Prevention found in 2011 that "(s)moking
prevalence generally decreased with increasing education and was
higher among adults living below the poverty level (28.9%) than
among those at or above the poverty level (18.3%)." That is,
cigarette taxes fall disproportionately upon the poor.
The Department of Revenue Administration estimates that House Bill
659 would raise between $6.7 million and $11.9 million. The bill
does not earmark those funds for smoking-cessation programs. So the
bill would raise taxes on the poor and middle class to fund the
general government. Again, this comes just one week after the House
voted to hit everyone with a $1 billion gas tax hike, which would
hurt low-income drivers the most. If you smoke and drive and you
voted for Democrats in November because you wanted to "soak the
rich," the joke's on you, pal.
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