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CLT UPDATE
Friday, October 30, 2015

Grad Tax spokesman's denial confirms CLT's charge


Opponents of a proposed additional income tax on millionaires claim the group pushing for a new tax on those with incomes above $1 million a year are potentially misleading voters with claims that new tax revenues will only be spent on transportation and education.

"You can't specify where the money's going in a ballot question. That's forbidden," Chip Faulkner of Citizens for Limited Taxation told the News Service Monday after CLT issued a press release asserting that supporters of the tax "can just as honestly promise a unicorn for every family, a pot of gold at the end of every rainbow." ...

Asked about the assertions from CLT, Raise Up Massachusetts spokesman Steve Crawford said in an email to the News Service that Attorney General Maura Healey "disagrees" with CLT since her summary of the proposed question says, "Revenues from this tax would be used, subject to appropriation by the state Legislature, only for public education, public colleges and universities, the repair and maintenance of roads, bridges, and public transportation."

"The proposed amendment clearly says that this money will be dedicated to public transportation and education needs of the commonwealth and that is supported by the summary issued by the attorney general," Crawford told the News Service. Asked about the "subject to appropriation" clause, Crawford said "the specific projects are the purview of the Legislature."

The Legislature over the years has delivered on some of its spending promises and come up short on others in the face of rising and falling revenues and scores of competing demands for appropriations.

"We are extremely confident that it will be spent on the purposes designated in the amendment," Crawford told the News Service.

State House News Service
Monday, October 26, 2015
CLT questions claims made by backers of higher tax on millionaires


Attorney General Maura Healey told the News Service two weeks ago when the Raise Up coalition signaled their intention to file this amendment that she looked forward to learning more about it.

"We know the very real problem with income inequality in our country and how important it is to address issues of income inequality for families, not just in our state but across this country so I support efforts to address income inequality. I take that seriously as attorney general," Healey said....

While constitutional amendments to impose a graduated income tax have failed at the ballot box in the past and in recent years have failed to generate much real debate on Beacon Hill, the climate may have changed slightly with Senate President Stanley Rosenberg assuming control of that branch.

"I'm a big supporter of graduated income tax," Rosenberg recently told the News Service. "I haven't studied this particular proposal, but I understand they've done a lot of hard work and a lot of thinking about why it failed and how it failed in previous attempts and sort to address the concerns of voters as they understood them from previous efforts."

Rosenberg, in his capacity as president, now wields the gavel during the Constitutional Convention, a joint session of the House and Senate where amendments such as this one can be, but are not always, debated.

"I would love to see the Convention debate the issue. I think it fits into the broad theme of income inequality and insecurity in Massachusetts," Rosenberg said.

State House News Service
Tuesday, August 4, 2015
Constitutional amendment proposed for millionaire tax


Advocates for higher taxes in Massachusetts have learned and are applying a basic strategic principle: divide and conquer.

The tax advocacy group Raise Up Massachusetts has proposed an amendment to the state constitution that would create a 4 percent surtax on those with incomes greater than $1 million. The measure will appear as a question on the November 2016 statewide ballot.

Progressives have long desired to establish a graduated tax rate in Massachusetts, under which those who earn more pay a higher tax rate. Under the state constitution, Massachusetts has a flat tax rate, currently at 5.15 percent. So the surtax on higher incomes requires a constitutional amendment to be lawful.

Past attempts to establish a graduated tax rate have been strongly rejected by voters. The current effort differs in two notable ways: It attacks only the very highest earners and it promises that the revenues generated -- estimated at $1.4 billion to $1.5 billion annually -- will be dedicated only to education and transportation uses.

These are both lies....

It is a lie just as the promise that the underground storage tank surcharge on the state gas tax would be used only to remove leaking gas tanks. Instead, the money raised goes into the state's general transportation fund.

Given access to a new pile of cash, the Legislature will use it for whatever purposes it pleases, promises be damned. Legislators cannot be trusted....

There is no figure, no amount of money, that will be enough for legislators and advocates of ever-higher levels of spending. They are insatiable....

The proposed amendment is nothing more than an underhanded attempt to rake $1.4 billion from the wallets of taxpayers first, and untold billions more in the future. Massachusetts residents ought to oppose this effort with all their might, and make their displeasure known, vehemently, to their representatives.

An Eagle-Tribune editorial
Thursday, October 29, 2015
Grad tax advocates launch another push


Section 2. Excluded Matters. - No measure that relates to religion, religious practices or religious institutions; or to the appointment, qualification, tenure, removal, recall or compensation of judges; or to the reversal of a judicial decision; or to the powers, creation or abolition of courts; or the operation of which is restricted to a particular town, city or other political division or to particular districts or localities of the commonwealth; or that makes a specific appropriation of money from the treasury of the commonwealth, shall be proposed by an initiative petition; but if a law approved by the people is not repealed, the general court shall raise by taxation or otherwise and shall appropriate such money as may be necessary to carry such law into effect....

Constitution of the Commonwealth of Massachusetts
Article XLVIII
The Initiative.
II. Initiative Petitions


Chip Ford's CLT Commentary

According to the State House News Service's report on Monday:

Steve Crawford said in an email to the News Service that Attorney General Maura Healey "disagrees" with CLT since her summary of the proposed question says, "Revenues from this tax would be used, subject to appropriation by the state Legislature, only for public education, public colleges and universities, the repair and maintenance of roads, bridges, and public transportation."

This isn't a disagreement with CLT it's positive affirmation of our charge of deception. It's reinforcement for our assertion that the tax-borrow-and-spend cabal is outright lying when it claims the proposed new revenue generated by its scheme will or even can be dedicated to ANY specific spending.

Steve Crawford — perennial spokesman for any Gimme Lobby assault on taxpayers — uses Attorney General Maura Healey's certification of the initiative amendment as a slick diversion, but "subject to appropriation by the state Legislature" is what it is.  The AG was questionably a neutral arbiter when deciding her certification of the petition as an apparent advocate for "income equality" — whatever that is.

From an earlier State House News Service report (Aug. 4, 2015; "Constitutional amendment proposed for millionaire tax"):

Attorney General Maura Healey told the News Service two weeks ago when the Raise Up coalition signaled their intention to file this amendment that she looked forward to learning more about it.

"We know the very real problem with income inequality in our country and how important it is to address issues of income inequality for families, not just in our state but across this country so I support efforts to address income inequality. I take that seriously as attorney general," Healey said....

You can count on Steve Crawford to spring out whenever a proposal to fleece taxpayers arises. He's the deep-pockets Gimme Lobby's go-to spokesman, has been for years.  I debated him in 2008 when he opposed Carla Howell's Committee for Small Government repeal of the income tax.  If it hurts taxpayers and benefits the tax-borrow-and-spend cabal, count on Crawford to be its mouthpiece.

On April 13, 2013 the Boston Herald's Erin Smith reported ("Pushing tax hike, shielding T fund; Operative works for pension firm, group backing gov"):

A political operative who represents the MBTA’s secret pension fund also does public relations for a union-backed group that has pushed Gov. Deval Patrick’s massive tax hike plan to boost transportation spending.

Steve Crawford, an independent public relations flack working for the MBTA Retirement Fund, would not say who pays his salary at Campaign for Our Communities, an organization which corralled the endorsements of various unions and groups to support boosting the state income tax rate to funnel more money to MBTA projects and education.

“I’m not going to tell you that,” Crawford told the Herald when asked who funds the Campaign for Our Communities.

Crawford is a well-paid man of many hats when it comes to fleecing taxpayers.  When Steve Crawford opens his mouth, grab your wallet.

The Eagle-Tribune editorial described the confusing process mechanics of an initiative amendment incorrectly.  The State House News Service (Aug. 4, 2015; "Constitutional amendment proposed for millionaire tax") accurately reported:

The process for amending the constitution, unlike more traditional ballot initiatives, takes years to move through a series of signature goals and required votes of the Legislature. If the language is approved by Healey, petitioners must collect 67,750 signatures by November to send the question to the Legislature.

Twenty-five percent of a joint meeting of the House and Senate, or 50 votes, must then support the measure before the end of formal sessions on July 31, 2016. A second affirmative vote of 50 or more lawmakers would be required the following session ending July 31, 2018 in order for the question to appear on the 2018 ballot.

Unlike most citizen-proposals for constitutional amendments  usually smothered in the crib by the Legislature this one is likely on the fast track for passage in the Legislature.  A graduated income tax has been a goal for the new Senate President for a very long time. From the State House News Service report of Aug. 4:

While constitutional amendments to impose a graduated income tax have failed at the ballot box in the past and in recent years have failed to generate much real debate on Beacon Hill, the climate may have changed slightly with Senate President Stanley Rosenberg assuming control of that branch.

"I'm a big supporter of graduated income tax," Rosenberg recently told the News Service. "I haven't studied this particular proposal, but I understand they've done a lot of hard work and a lot of thinking about why it failed and how it failed in previous attempts and sort to address the concerns of voters as they understood them from previous efforts."

Rosenberg, in his capacity as president, now wields the gavel during the Constitutional Convention, a joint session of the House and Senate where amendments such as this one can be, but are not always, debated.

"I would love to see the Convention debate the issue. I think it fits into the broad theme of income inequality and insecurity in Massachusetts," Rosenberg said.

The Eagle-Tribune editorial sums up the Gimme Lobby's assault succinctly:

Advocates for higher taxes in Massachusetts have learned and are applying a basic strategic principle: divide and conquer....

The proposed constitutional amendment is simply a backdoor to a graduated income tax. It is made palatable by targeting first a group of citizens sure to be viewed unsympathetically by voters — the "rich" who make $1 million or more a year, estimated at just 14,000 state residents.

But once the principle of a graduated tax is established, it will not be long before other, less well-off citizens become marks for the taxman's long fingers.

This is a state that spends more than $30 billion annually. Prudently managed, that is more than enough to meet all our education and transportation needs. But prudent management is not in the legislative leadership's interest. Power accrues to them by their ability to direct how money is spent, not from how much can be saved.

There is no figure, no amount of money, that will be enough for legislators and advocates of ever-higher levels of spending. They are insatiable.

Chip Ford


 

State House News Service
Monday, October 26, 2015

CLT questions claims made by backers of higher tax on millionaires
By Michael Norton


Opponents of a proposed additional income tax on millionaires claim the group pushing for a new tax on those with incomes above $1 million a year are potentially misleading voters with claims that new tax revenues will only be spent on transportation and education.

"You can't specify where the money's going in a ballot question. That's forbidden," Chip Faulkner of Citizens for Limited Taxation told the News Service Monday after CLT issued a press release asserting that supporters of the tax "can just as honestly promise a unicorn for every family, a pot of gold at the end of every rainbow."

At issue is the inclusion in the proposed constitutional amendment of the phrase "subject to appropriation by the Legislature," a caveat that CLT believes will give lawmakers ample opportunity to direct new revenues from higher taxes to whichever spending accounts they wish.

The coalition Raise Up Massachusetts is proposing to add a 4 percent tax on incomes over $1 million, on top of the state's flat 5.15 percent income tax rate. Sponsors estimate about 14,000 individuals would end up generating between $1.3 billion and $1.4 billion in new revenue for state government.

Asked about the assertions from CLT, Raise Up Massachusetts spokesman Steve Crawford said in an email to the News Service that Attorney General Maura Healey "disagrees" with CLT since her summary of the proposed question says, "Revenues from this tax would be used, subject to appropriation by the state Legislature, only for public education, public colleges and universities, the repair and maintenance of roads, bridges, and public transportation."

"The proposed amendment clearly says that this money will be dedicated to public transportation and education needs of the commonwealth and that is supported by the summary issued by the attorney general," Crawford told the News Service. Asked about the "subject to appropriation" clause, Crawford said "the specific projects are the purview of the Legislature."

The Legislature over the years has delivered on some of its spending promises and come up short on others in the face of rising and falling revenues and scores of competing demands for appropriations.

"We are extremely confident that it will be spent on the purposes designated in the amendment," Crawford told the News Service.


State House News Service
Tuesday, August 4, 2015

Constitutional amendment proposed for millionaire tax
By Matt Murphy


The coalition behind last year's successful push to guarantee earned sick time for Massachusetts workers has taken the first step on Tuesday toward amending the state's constitution to tax income over $1 million at a higher rate.

Raise Up Massachusetts, a coalition of organized labor, community groups and religious leaders, filed a petition on Tuesday with the Attorney General's office seeking to impose an additional 4 percent income tax on all earnings above $1 million, with the revenue generated dedicated to the broad categories of public education, infrastructure and transit.

Because the new tax bracket would require an amendment to the state constitution, a document that prohibits tiered income taxes, the earliest the question could go before voters would be 2018. Many hurdles, however, remain before that could happen, including the Legislature voting to advance the petition in two consecutive constitutional conventions.

"Massachusetts has one of the largest income inequality problems in the country, and it's getting worse. Yet out highest-income residents, who have been the biggest winners in the economy, pay the smallest share of their income in state and local taxes," UMass Boston economics professor Arthur MacEwan said in a statement provided by the Raise Up coalition.

The 10 co-signers of the initial petition include a mix of wealthy businessmen such as former Stride Rite President Arnold Hiatt and small business owners such as Debbie Frongiero, who owns 7 Seas Whale Watch in Gloucester. Other petition signatories include Lawrence personal care attendant Islandia Aquino; Fall River teacher Rebecca Cusick; Christian Community Church pastor Rev. Jose Encarnacion of Worcester; former Northampton Mayor Clair Higgins; Marven-rhode Hyppolite, the former president of the Student Government Association at UMass Dartmouth; Peabody senior activist Barbara Mann; Bus Riders United organizer Sigute Meilus, of New Bedford; and Mary Ann Stewart, the parent representative on the Massachusetts Board of Elementary and Secondary Education.

The amendment would do away with the state's flat income tax rate - currently set at 5.15 percent - replacing it with a tiered system. The current income tax rate, set to gradually fall to 5 percent, would remain in place for Massachusetts earners. An additional 4 percent tax would be levied on earnings over $1 million, or 9.15 percent under current tax structure.

The income level subject to the higher tax rate would be adjusted annually the same way cost-of-living adjustments are applied to federal tax brackets to "ensure that this additional tax continues to apply only to the commonwealth's highest income residents."

The first step in the process requires Attorney General Maura Healey and her office to review the language to make sure it meets the legal requirements for a ballot initiative. While the state constitution bans ballot questions that make specific appropriations of state funding, proponents believe the language directing new revenue to education and transportation is vague enough to clear the legal hurdles.

Attorney General Maura Healey told the News Service two weeks ago when the Raise Up coalition signaled their intention to file this amendment that she looked forward to learning more about it.

"We know the very real problem with income inequality in our country and how important it is to address issues of income inequality for families, not just in our state but across this country so I support efforts to address income inequality. I take that seriously as attorney general," Healey said.


The process for amending the constitution, unlike more traditional ballot initiatives, takes years to move through a series of signature goals and required votes of the Legislature. If the language is approved by Healey, petitioners must collect 67,750 signatures by November to send the question to the Legislature.

Twenty-five percent of a joint meeting of the House and Senate, or 50 votes, must then support the measure before the end of formal sessions on July 31, 2016. A second affirmative vote of 50 or more lawmakers would be required the following session ending July 31, 2018 in order for the question to appear on the 2018 ballot.

While constitutional amendments to impose a graduated income tax have failed at the ballot box in the past and in recent years have failed to generate much real debate on Beacon Hill, the climate may have changed slightly with Senate President Stanley Rosenberg assuming control of that branch.

"I'm a big supporter of graduated income tax," Rosenberg recently told the News Service. "I haven't studied this particular proposal, but I understand they've done a lot of hard work and a lot of thinking about why it failed and how it failed in previous attempts and sort to address the concerns of voters as they understood them from previous efforts."

Rosenberg, in his capacity as president, now wields the gavel during the Constitutional Convention, a joint session of the House and Senate where amendments such as this one can be, but are not always, debated.

"I would love to see the Convention debate the issue. I think it fits into the broad theme of income inequality and insecurity in Massachusetts," Rosenberg said.


The Eagle-Tribune
Thursday, October 29, 2015

An Eagle-Tribune editorial
Grad tax advocates launch another push


Advocates for higher taxes in Massachusetts have learned and are applying a basic strategic principle: divide and conquer.

The tax advocacy group Raise Up Massachusetts has proposed an amendment to the state constitution that would create a 4 percent surtax on those with incomes greater than $1 million. The measure will appear as a question on the November 2016 statewide ballot.

Progressives have long desired to establish a graduated tax rate in Massachusetts, under which those who earn more pay a higher tax rate. Under the state constitution, Massachusetts has a flat tax rate, currently at 5.15 percent. So the surtax on higher incomes requires a constitutional amendment to be lawful.

Past attempts to establish a graduated tax rate have been strongly rejected by voters. The current effort differs in two notable ways: It attacks only the very highest earners and it promises that the revenues generated -- estimated at $1.4 billion to $1.5 billion annually -- will be dedicated only to education and transportation uses.

These are both lies.

The promise that the revenue generated will be used solely for education and transportation is a lie just as was the promise that the state income tax hike enacted in 1989 would be "temporary." Yet here we are 26 years later and the income tax rate still has not returned to its "permanent" level of 5 percent.

It is a lie just as the promise that the underground storage tank surcharge on the state gas tax would be used only to remove leaking gas tanks. Instead, the money raised goes into the state's general transportation fund.

Given access to a new pile of cash, the Legislature will use it for whatever purposes it pleases, promises be damned. Legislators cannot be trusted.

The proposed constitutional amendment is simply a backdoor to a graduated income tax. It is made palatable by targeting first a group of citizens sure to be viewed unsympathetically by voters the "rich" who make $1 million or more a year, estimated at just 14,000 state residents.

But once the principle of a graduated tax is established, it will not be long before other, less well-off citizens become marks for the taxman's long fingers.

This is a state that spends more than $30 billion annually. Prudently managed, that is more than enough to meet all our education and transportation needs. But prudent management is not in the legislative leadership's interest. Power accrues to them by their ability to direct how money is spent, not from how much can be saved.

There is no figure, no amount of money, that will be enough for legislators and advocates of ever-higher levels of spending. They are insatiable.

Fortunately, next year's ballot question is just the start of a complicated process. For the constitution to be amended, 50 of the state's 200 legislators must approve of the measure in two consecutive sessions. If that hurdle is passed, the measure would go before voters in 2018, needing a majority to pass.

The proposed amendment is nothing more than an underhanded attempt to rake $1.4 billion from the wallets of taxpayers first, and untold billions more in the future. Massachusetts residents ought to oppose this effort with all their might, and make their displeasure known, vehemently, to their representatives.

 

NOTE: In accordance with Title 17 U.S.C. section 107, this material is distributed without profit or payment to those who have expressed a prior interest in receiving this information for non-profit research and educational purposes only. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml


Citizens for Limited Taxation    PO Box 1147    Marblehead, MA 01945    508-915-3665

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