Help save yourself join CLT today!

CLT introduction  and membership  application

What CLT saves you from the auto excise tax alone

Make a contribution to support CLT's work by clicking the button above

Ask your friends to join too

Visit CLT on Facebook

Barbara Anderson's Great Moments

Follow CLT on Twitter

CLT UPDATE
Tuesday, March 7, 2017

Autopsy of the obscene Legislators' pay grabitle


At the State House, they call it the “vote no, take the dough” caucus.

The members are 12 of the 13 House Republican leaders who are taking the huge salary increases that they voted against — three times.

That happened last month when House Speaker Robert A. DeLeo and Senate President Stanley C. Rosenberg rammed through an $18 million legislative pay raise bill that also included big raises for judges, the governor, other constitutional officers, and various court officers across the state....

Those legislators whose salaries would be fattened because they hold leadership positions or committee chairmanships had until the end of Friday to inform the state Treasurer’s office not to include the increases in their bimonthly paychecks if they intended to refuse the raise.

Now, with that deadline past, the “vote no, take the dough” crowd can clearly be identified....

The state GOP railed against the Democratic leadership for using the cacophony surrounding Donald Trump’s ascendancy to the White House and the Patriots’ stunning Super Bowl victory to pass the bill without public debate or input. The Senate GOP caucus has refused to accept the raises....

Only one House Republican — Angelo D’Emilia of Bridgewater — turned down the stipend increase he could have claimed, according to the treasurer’s office records....

Legislators are barred by a 1998 constitutional amendment from raising their own base salaries. Those are set every two years by the governor to reflect the fluctuation of average wages in the state. Baker set the base salary at $62,547 in January.

Lawmakers, however, are free to set the levels for extra pay for legislators with leadership posts, committee chairmen, vice chairmen, and “ranking minority members.” They are also free to create additional leadership positions....

Meanwhile, the treasurer’s records show some of the Democrats in the Senate, particularly veterans whose pensions will be fattened by the raises, are taking advantage of a newly adopted Senate rule that allows each member to take stipends from as many as three positions.

None are fully using that rule, but a handful are claiming two stipends. The previous rules restricted senators to one stipend apiece.

The Boston Globe
Monday, March 6, 2017
‘Vote no, take the dough’: Lawmakers opposed raise, but now accept it


When did Gov. Charlie Baker first learn about the $18 million pay raise bill that was passed into law over his veto?

The governor has added a measure of confusion to that question, saying at one point he knew about it in 2016, and there is no word on when he was first told about it from the top Democrats in the House and Senate who introduced the legislation Jan. 23 and passed it into law on Feb. 2.

"Let's just say that I don't give timetables on private conversations, and I'll just leave it at that," Senate President Stan Rosenberg told the News Service last month. Speaker Robert DeLeo on Thursday declined to answer a question about when the governor was told about the controversial bill.

In a February radio appearance, the governor said he made his opposition to the proposal clear last year, at least weeks before the idea was ever aired publicly. But if that were true, there was a limited audience for that veto threat.

"I said in 2016 once I saw the proposal that if that made it to my desk, I would veto it for a whole bunch of reasons," Baker said during his Feb. 16 appearance on WGBH's Ask the Governor....

At an annual cost that will reach $18 million, legislation raising the pay of top lawmakers, statewide elected officials and judges cleared the House and Senate with lightning speed this year. The bill was introduced Jan. 23 and became the first law of the new session on Feb. 2. DeLeo and Rosenberg filed the bill a week after announcing they would hold a public hearing on a two-year-old report examining the compensation levels of public officials.

Ahead of the hearing, members of legislative leadership said they did not know whether a bill would emerge from the informational hearing.

But an advisory letter from the Ethics Commission dated Jan. 19, the same day as the hearing, made clear that legislation had been in the works for a while. The four-page letter from Ethics Commission General Counsel Deirdre Roney to House Counsel James Kennedy and Senate Counsel Jennifer Miller says that the legislative officials had shared draft legislation. The Ethics Commission lawyer concluded that legislators were free to vote on that type of bill as "general legislation" because the new compensation would be "applicable to anyone holding a variety of public positions."

The letter also suggests that officials from the Legislature had begun consulting with the Ethics Commission about the idea in 2016 or earlier....

After the bill was sent to him Baker knocked it as "fiscally irresponsible," and quickly returned it with a veto, enabling legislative leaders to quickly override it.... No votes were flipped as the House and Senate overrode the governor's veto, setting the pay raise bill into law. In the House, 116 of the 160 members voted for the override, and the override passed the Senate 31-9.

State House News Service
Monday, March 6, 2017
Baker says he saw pay raise proposal in 2016


If you’re a Republican in the Massachusetts House, early on you have to make a career choice.

You can be a watchdog, or a lapdog.

Can you guess which pays better?

You recall the recent stampede to the trough by the state Legislature. It was aggravated assault — against the taxpayers. Of course, the Legislature’s GOP minority had our backs, wink-wink, nudge-nudge.

En masse, they voted against the greatest heist since the Brinks Job. Then Gov. Tall Deval vetoed it (first making sure his Democrat pals had the votes to override) after which the GOP futilely voted to sustain his veto.

But now, after doing the right thing, the GOP’s “leadership” hacks in the House are taking the pay raises they voted against. At least I think they are.

They refused to answer when I asked them. Only 13 of the 34 Republicans got the obscene pay hikes. The lawmakers who actually stood up and represented their constituents — state Reps. Shaunna O’Connell, Geoff Diehl, Jim Lyons and Marc Lombardo, among others — got stiffed, once again proving that no good deed goes unpunished....

Check out the table here. Are these titles jokes? Are you kidding me — state Rep. Keiko Orrall of Lakeville, “ranking minority member, Joint Committee on Economic Development & Emerging Technology?”

How about the three hacks who went from zero to $15,000 overnight, on top of their $62,500 salary and the $7,800 for travel and whatever, mostly whatever. Think they’ll ever get out of line?

These hacks could have done the right thing. They’re supposed to be citizen legislators, not card-carrying members of the International Brotherhood of Payroll Patriots, Local 122500.

If any of the Dirty Dozen had called or emailed me back, I would have told them, it’s one thing to feed at the trough, it’s another thing to lick the plate.

The Boston Herald
Friday, March 3, 2017
Both sides can reach the trough
Some in GOP stand to gain big

By Howie Carr


"I don't think there's the slightest chance it won't pass," said Rep. Jay Kaufman, D-Lexington, predicting the proposal will easily get enough support in the Legislature's next constitutional convention to advance to the ballot.

To make it to the ballot, the proposal needs at least 50 of the 200 state lawmakers to vote for it at constitutional conventions in consecutive sessions. Last May, it got 135 votes from legislators, clearing the first step by a wide margin....

The proposal directs that revenue generated from the new tax be spent on education and transportation. The Department of Revenue estimates it would generate an additional $1.9 billion in 2019.

"It's striking that every single commission or committee that's looked at either the underfunding of education or transportation has come up with an estimate that it would take about $1 billion in each of those areas to get us where we need to be," said Kaufman, the longtime chairman of the Joint Committee on Revenue. "If we can raise $2 billion, we can make a significant dent in our underinvesting in those areas."

Chip Faulkner, director of communications for Citizens for Limited Taxation, opposes the proposed amendment and any effort to enact a graduated state income tax rate.

"We know this is only the first step," he predicted. "If this gets in, the next income group will be people making half a million, then $100,000, and on down the line."

Faulkner also said the surtax would unfairly punish the wealthy.

Why should people be penalized for being successful?" he said. "We're already a heavily taxed state. We certainly don't want to go back the old label of Taxachusetts." ...

Faulkner also argued that the state constitution prohibits amendments that allocate funds, meaning there would be no guarantee that revenue raised by the surtax would actually be spent on education and transportation.

"It's unfair to tax people making higher wages, and the big thing is this money will not go where they say it will," Faulkner said. "It's going to go into the black hole known as the general fund."

The Winchester Star
Thursday, March 2, 2017
Winchester sees growth in local millionaires


Chip Ford's CLT Commentary

"At the State House, they call it the 'vote no, take the dough' caucus."

This is always a tough call, when it comes to vastly outnumbered Republican legislators who vote one way, but then reap the rewards of their anticipated defeat.  It's not hard to say that they shouldn't have it both ways: harvesting the platitudes of principle, then stuffing a bundle of extra cash in their pockets the fruits of defeat.

Every Republican in the state Senate literally put their money where their mouths were, which includes Sens. Vinny deMacedo (R-Plymouth), Ryan Fattman (R-Sutton), Donald Humason (R-Westfield),  Patrick O'Connor (R-Weymouth), Richard Ross (R-Wrentham), and Bruce Tarr (R-Gloucester).  They all rejected the obscene pay grab to which they were "entitled."

Only one Republican in the House turned it down:  Rep. Angelo D’Emilia of Bridgewater.

As Howie Carr noted in his column, the truly outspoken opponents aren't in so-called "leadership positions" so weren't "entitled" to the extra taxpayer-provided bonanza:  "The lawmakers who actually stood up and represented their constituents — state Reps. Shaunna O’Connell, Geoff Diehl, Jim Lyons and Marc Lombardo, among others — got stiffed, once again proving that no good deed goes unpunished..."

Thanks to Andy Metzger at the State House News Service, it's now been revealed for certain that this disgusting scheme had long been in the works, for a least a year prior to it being suddenly sprung in January as the Legislature's first priority.  "The letter also suggests that officials from the Legislature had begun consulting with the Ethics Commission about the idea in 2016 or earlier...." he wrote.  This leads Metzger to another intriguing question:

When did Gov. Charlie Baker first learn about the $18 million pay raise bill that was passed into law over his veto?

The governor has added a measure of confusion to that question, saying at one point he knew about it in 2016, and there is no word on when he was first told about it from the top Democrats in the House and Senate who introduced the legislation Jan. 23 and passed it into law on Feb. 2.

"Let's just say that I don't give timetables on private conversations, and I'll just leave it at that," Senate President Stan Rosenberg told the News Service last month. Speaker Robert DeLeo on Thursday declined to answer a question about when the governor was told about the controversial bill.

What are the primary schemers Rosenberg and DeLeo hiding, covering for?

Meanwhile, Rep. Jay Kaufman (D-Arlington) continues to crusade for this latest proposed graduated income tax constitutional amendment (aka, "The Millionaire's Tax," aka, "The Fair Tax Amendment").  Overwhelming support in the Democrat-controlled Legislature to put it on the 2018 ballot is accepted as another done deal.  One more vote by the House and Senate in constitutional convention will accomplish the next step in this long lusted for divide-and-conquer amendment to our state constitution to end the Commonwealth's historic flat tax.

We've been here before, with a Grad Tax on the ballot to amend the constitution.  It was the Grad Tax proposal of 1976 that brought CLT onto the scene and launched our organization.  It's been proposed and defeated five times in the past (1962, 1968, 1972, 1976 and 1994), most recently in 1994 with CLT again leading the opposition by a better than 2-1 margin.

We announced our opposition to this latest incarnation and hope that CLT will be around to lead the charge across the state to defeat it for a sixth time next year.

Barbara Anderson holding CLT's 1994 ballot campaign sign.

Chip Ford
Executive Director


 
The Boston Globe
Monday, March 6, 2017

‘Vote no, take the dough’: Lawmakers opposed raise, but now accept it
By Frank Phillips


At the State House, they call it the “vote no, take the dough” caucus.

The members are 12 of the 13 House Republican leaders who are taking the huge salary increases that they voted against — three times.

That happened last month when House Speaker Robert A. DeLeo and Senate President Stanley C. Rosenberg rammed through an $18 million legislative pay raise bill that also included big raises for judges, the governor, other constitutional officers, and various court officers across the state.

When Republican Governor Charlie Baker vetoed the measure, lawmakers quickly overrode him.

Those legislators whose salaries would be fattened because they hold leadership positions or committee chairmanships had until the end of Friday to inform the state Treasurer’s office not to include the increases in their bimonthly paychecks if they intended to refuse the raise.

Now, with that deadline past, the “vote no, take the dough” crowd can clearly be identified.

House minority leader Bradley Jones is its leader. He mounted the only major opposition in the House debate to the salary increases, reading from the same page as Baker, who called the increases “fiscally irresponsible” and said they would place an “unplanned, additional burden” on the current fiscal year’s state budget.

The state GOP railed against the Democratic leadership for using the cacophony surrounding Donald Trump’s ascendancy to the White House and the Patriots’ stunning Super Bowl victory to pass the bill without public debate or input. The Senate GOP caucus has refused to accept the raises.

Now Jones will receive a $60,000 leadership stipend on top of his $62,547 base salary. His previous stipend was $22,000. And with a $15,000 expense allowance, his total annual paycheck will be $137,547. That compares with the $92,042 he received last year.

Legislators are barred by a 1998 constitutional amendment from raising their own base salaries. Those are set every two years by the governor to reflect the fluctuation of average wages in the state. Baker set the base salary at $62,547 in January.

Lawmakers, however, are free to set the levels for extra pay for legislators with leadership posts, committee chairmen, vice chairmen, and “ranking minority members.” They are also free to create additional leadership positions.

Jones’s assistant minority leader, Brad Hill of Ipswich, who made $84,542 last year, will see his stipend go from $15,000 to $35,000. Add on the new $15,000 for expenses, he will make $112,547. (Legislators living at least 50 miles away from the State House get $20,000 for expenses, under the new pay law. The old system allowed for per diem travel expenses and a $7,200 office allowance.)

And then there is the position of “third assistant minority leader” — which now is occupied by not one but two GOP lawmakers, thanks to a little-noticed rule change. The stipend has gone from $15,000 to $35,000. That will increase the paychecks of GOP representatives Paul K. Frost of Auburn and Susan Williams Gifford of Wareham.

Only one House Republican — Angelo D’Emilia of Bridgewater — turned down the stipend increase he could have claimed, according to the treasurer’s office records.

Neither Jones nor his spokesman responded to several requests for a comment from the minority leader.

But last month, Jones seemed to justify taking the increase by arguing that it was a matter of fairness.

“Why not?” he told the State House News Service.

“It seems to me that you’re sending a variety of messages. One is, somehow now this is going to be the law, so I’m going to go devalue what I do vis-a-vis my counterparts in the rest of the body?” he said.

“Next of all, if you don’t like the thing that you passed, now I’m going to leave the money under the care, control, custody, and discretion of the same people who passed this bill in the first place?’’ Jones said. “I don’t think it’s fair for me to now go to my family and say, ‘I’m not worth that,’ even though I’m going to work just as hard or harder.”

Senate minority leader Bruce Tarr and his five GOP colleagues see it differently. As in the House, all the Republicans voted against the raises. But, for the most part, they have refused to accept them.

Tarr will continue to get the same stipend that was set for his position in 1994 — $22,500 — forgoing a $37,500 increase. (One GOP senator, Donald Humason of Westfield, has said he will take the extra funds and distribute them to charities.)

Some of the extra-paying positions for Republicans carry little workload.

Representative Kimberly Ferguson of Holden, who made just over $69,000 last year without any stipends, is now the ranking minority member of the House Rules Committee, which holds no regular hearings and rarely meets. She will get an extra $15,000, boosting her total salary and expenses to $92,547.

The only response to requests for comments sent to the GOP lawmakers who are taking the raises came from Keiko Orrall of Lakeville. She is getting an extra $15,000 as the House ranking minority member of the committee on Economic Development and Emerging Technologies.

Orrall, whose legislative compensation last year was $77,042, argues that by not taking the raise, the money is left to the Democratic leadership to use as they want. She also claimed the media’s focus on the GOP lawmaker is letting the Democrats off the hook for proposing the raises

“Questioning why Republicans would be accepting the stipends is an attempt to change the narrative away from the Democrats who put the pay raise forward,’’ said Orrall. “This is a false narrative to discredit Republicans. Look at the vote count and see who voted for this pay increase. I voted against it. I voted No three times.”

Meanwhile, the treasurer’s records show some of the Democrats in the Senate, particularly veterans whose pensions will be fattened by the raises, are taking advantage of a newly adopted Senate rule that allows each member to take stipends from as many as three positions.

None are fully using that rule, but a handful are claiming two stipends. The previous rules restricted senators to one stipend apiece.

Most notable is Senate majority leader Harriette Chandler of Worcester, who is getting an extra $75,000 added to her salary. She now gets $60,000 (up from $22,500) as majority leader. But she is also now chairing the Senate redistricting committee, which has no significant work until the 2020 census is completed. That pays $15,000. Add another $15,000 for “expenses,” and her salary runs to $152,547. Last year she made $92,042.

Senator Mark C. Montigny of New Bedford will collect $35,000 as assistant majority leader and another $30,000 as chairman of the Senate Rules Committee, another committee that does not hold hearings and rarely meets. His new annual compensation is $142,547. In 2016, his salary was $84,542,

Senator Cynthia Creem of Newton is now making $142,547. She gets $35,000 extra pay for her position as assistant majority leader. And she gets another $30,000 as chairwoman of the Senate Committee on Bills in Third Reading, which holds no hearings and deals with no major policy issues.
 

State House News Service
Monday, March 6, 2017

Baker says he saw pay raise proposal in 2016
By Andy Metzger

When did Gov. Charlie Baker first learn about the $18 million pay raise bill that was passed into law over his veto?

The governor has added a measure of confusion to that question, saying at one point he knew about it in 2016, and there is no word on when he was first told about it from the top Democrats in the House and Senate who introduced the legislation Jan. 23 and passed it into law on Feb. 2.

"Let's just say that I don't give timetables on private conversations, and I'll just leave it at that," Senate President Stan Rosenberg told the News Service last month. Speaker Robert DeLeo on Thursday declined to answer a question about when the governor was told about the controversial bill.

In a February radio appearance, the governor said he made his opposition to the proposal clear last year, at least weeks before the idea was ever aired publicly. But if that were true, there was a limited audience for that veto threat.

"I said in 2016 once I saw the proposal that if that made it to my desk, I would veto it for a whole bunch of reasons," Baker said during his Feb. 16 appearance on WGBH's Ask the Governor.

A spokesman for the governor later told the News Service that Baker was actually referring to his publicly announced intention to veto the bill, which was made in late January after it was sent to his desk. Press Secretary William Pitman did not address why the governor's account during his monthly appearance on WGBH Radio was so at odds with how the episode played out in public, and did not respond to a question about whether the governor misspoke.

"I have absolutely no idea what you're talking about," Baker said Thursday when asked about the claim he made on WGBH. He said, "Get us the audio and I'll be happy to respond to it."

A spokesman subsequently sent links to stories about the governor's past public statements on the issue.

At an annual cost that will reach $18 million, legislation raising the pay of top lawmakers, statewide elected officials and judges cleared the House and Senate with lightning speed this year. The bill was introduced Jan. 23 and became the first law of the new session on Feb. 2. DeLeo and Rosenberg filed the bill a week after announcing they would hold a public hearing on a two-year-old report examining the compensation levels of public officials.

Ahead of the hearing, members of legislative leadership said they did not know whether a bill would emerge from the informational hearing.

But an advisory letter from the Ethics Commission dated Jan. 19, the same day as the hearing, made clear that legislation had been in the works for a while. The four-page letter from Ethics Commission General Counsel Deirdre Roney to House Counsel James Kennedy and Senate Counsel Jennifer Miller says that the legislative officials had shared draft legislation. The Ethics Commission lawyer concluded that legislators were free to vote on that type of bill as "general legislation" because the new compensation would be "applicable to anyone holding a variety of public positions."

The letter also suggests that officials from the Legislature had begun consulting with the Ethics Commission about the idea in 2016 or earlier.

The letter states, "You have advised us that pursuant to the constitutional mechanism, the base salary available to the members of the General Court has been increased a number of times, and is currently $60,032" - which was the base salary for the 2015-2016 session.

On Dec. 29, 2016, Baker raised the base salary for lawmakers to $62,547 in accordance with the constitution, following recent increases in household income.

The Republican governor, who has strived to maintain a collaborative relationship with Democratic legislative leaders and often meets with them privately, was mostly a bystander in the lead-up to the bill's enactment. After the bill was sent to him Baker knocked it as "fiscally irresponsible," and quickly returned it with a veto, enabling legislative leaders to quickly override it.

Some Republican lawmakers were outspoken in their opposition to the pay raises before a bill even emerged publicly.

"For us to even be looking at this, or considering this, at this time I would say is inappropriate," said Rep. Brad Hill, an Ipswich Republican and member of Republican leadership, ahead of the hearing.

On Monday, Jan. 23, the day the pay raise bill was filed, Baker met behind closed doors with its sponsors, DeLeo and Rosenberg, and afterwards indicated he would wait to take action until lawmakers sent him a bill.

"I'm unaware at this point in time that there's any proposal before the Legislature with respect to their rate of pay. We obviously will treat any proposal from the Legislature the same way we'll treat all the other proposals up until now, which is we wait until they send us something and then we respond," Baker said that day.

As the bill was flying through the branches the governor suggested that he opposed it by referencing a stance he had taken as governor-elect, without saying he would veto the bill. In 2014, after winning election, Baker had said he would "probably veto" a hypothetical bill.

"We said in 2014 we didn't think the pay raise made sense at that point in time and I don't see a lot that's changed with respect to that," Baker said Jan. 25, the day the House passed the pay raise bill.

Joined by 12 Democrats, Republicans in the House and Senate voted unanimously in opposition to the pay raise bill. After the House vote, Taunton Republican Rep. Shaunna O'Connell said she did not know whether Baker would veto it.

"I do not know what the governor will do," O'Connell told reporters outside the House chamber.

Appearing in late January on WGBH's Ask The Governor before the Legislature took up veto override votes, Baker encouraged constituents to call lawmakers about the issue and said his office had received more calls on the pay raise bill than even the breakdowns of the MBTA during the relentless 2015 winter.

"People should encourage those who share our views to reach out to and speak to their legislators about it, because that is in fact the best way to bring attention to this and to get it on people's radars," Baker said. He said, "I think it's important for people to make their voices heard."

No votes were flipped as the House and Senate overrode the governor's veto, setting the pay raise bill into law. In the House, 116 of the 160 members voted for the override, and the override passed the Senate 31-9.

The pay raise issue came up again during the governor's February appearance on WGBH when co-host Jim Braude expressed criticisms of the hefty pay hikes available to members of legislative leadership and questioned, "Is this just a done deal?"

The governor noted his opposition to the idea in 2014, claimed he threatened to veto such a proposal in 2016, and advised the public to keep the matter in mind in 2018 - when he is likely to appear for re-election along with other state officials.

"In the end I didn't have the numbers to sustain a veto and I guess what I would say is that this is something that people should just keep in mind as they consider their decisions in 2018," Baker said.

One potential Democratic candidate for governor has been an outspoken opponent of the pay raises. Hours before the governor said he would veto the bill, Newton Mayor Setti Warren said in a statement, "I urge Gov. Baker to veto the poorly rushed-through pay raise plan passed today by the Massachusetts Senate."


The Boston Herald
Friday, March 3, 2017

Both sides can reach the trough
Some in GOP stand to gain big
By Howie Carr


If you’re a Republican in the Massachusetts House, early on you have to make a career choice.

You can be a watchdog, or a lapdog.

Can you guess which pays better?

You recall the recent stampede to the trough by the state Legislature. It was aggravated assault — against the taxpayers. Of course, the Legislature’s GOP minority had our backs, wink-wink, nudge-nudge.

En masse, they voted against the greatest heist since the Brinks Job. Then Gov. Tall Deval vetoed it (first making sure his Democrat pals had the votes to override) after which the GOP futilely voted to sustain his veto.

But now, after doing the right thing, the GOP’s “leadership” hacks in the House are taking the pay raises they voted against. At least I think they are.

They refused to answer when I asked them. Only 13 of the 34 Republicans got the obscene pay hikes. The lawmakers who actually stood up and represented their constituents — state Reps. Shaunna O’Connell, Geoff Diehl, Jim Lyons and Marc Lombardo, among others — got stiffed, once again proving that no good deed goes unpunished.

I know state Rep. Brad Jones of Reading is grabbing an extra $37,500, which pushes him to $122,500.

Amazing. The guy is afraid of his own shadow. When the unindicted-co-conspirator speaker says, “Jump!” Brad says, “How high!”

At least Jones understands what he is, a shameless hack. That’s why he owned up to his unspeakable greed. But when I inquired whether the Dirty Dozen under him in “leadership” are grabbing it, I was told no one had inquired.

Hmmmmmm …

So I sent out a mass email to the Dirty Dozen yesterday, asking if they’re grabbing the gelt. I pointed out that it would seem rather odd to cash in on something they’d voted against — at least twice.

I waited three hours after sending out the first question. When the phone didn’t ring, I knew it was the lapdog caucus. So I sent out a second email, putting it in terms every reprobate rep understands — last call!

Still nothing. I guess they were too busy shopping for their new Jaguars.

Check out the table here. Are these titles jokes? Are you kidding me — state Rep. Keiko Orrall of Lakeville, “ranking minority member, Joint Committee on Economic Development & Emerging Technology?”

How about the three hacks who went from zero to $15,000 overnight, on top of their $62,500 salary and the $7,800 for travel and whatever, mostly whatever. Think they’ll ever get out of line?

These hacks could have done the right thing. They’re supposed to be citizen legislators, not card-carrying members of the International Brotherhood of Payroll Patriots, Local 122500.

If any of the Dirty Dozen had called or emailed me back, I would have told them, it’s one thing to feed at the trough, it’s another thing to lick the plate.


The Winchester Star
Thursday, March 2, 2017

Winchester sees growth in local millionaires
By Gerry Tuoti


Later this year, a proposed surtax on million-dollar incomes is expected to pass the final hurdle standing between it and a spot on the 2018 state ballot, potentially raising taxes on more than 15,000 people and generating nearly $2 billion in revenue.

"I don't think there's the slightest chance it won't pass," said Rep. Jay Kaufman, D-Lexington, predicting the proposal will easily get enough support in the Legislature's next constitutional convention to advance to the ballot.

To make it to the ballot, the proposal needs at least 50 of the 200 state lawmakers to vote for it at constitutional conventions in consecutive sessions. Last May, it got 135 votes from legislators, clearing the first step by a wide margin.

The proposed constitutional amendment would add 4 percent to the state income tax for people who earn more than $1 million. Currently, Massachusetts has a 5.1 percent flat income tax, which is scheduled to gradually decrease to 5 percent when certain economic benchmarks are hit.

Under the proposed amendment, a person's first $1 million in taxable income would be taxed at the current 5.1 percent rate. Any income in excess of $1 million would be subject to both the existing tax rate and the new 4 percent surtax. That means a person earning $1.5 million in taxable income would pay 5.1 percent in taxes on the first $1 million, and 9.1 percent on the remaining $500,000.

In 2014, there were 15,422 Massachusetts residents who filed tax returns reporting more than $1 million in income. There were 1,808 million-dollar earners from other states who worked in Massachusetts. Winchester had 315 residents filing income taxes reporting $1 million or more in income, about 1.41 percent of the population. That rose from 2004, when 161 residents filed income taxes reporting more than $1 million in income, or .77 percent of the toal population.

The amendment would adjust the $1 million surtax threshold according to inflation.

The proposal directs that revenue generated from the new tax be spent on education and transportation. The Department of Revenue estimates it would generate an additional $1.9 billion in 2019.

"It's striking that every single commission or committee that's looked at either the underfunding of education or transportation has come up with an estimate that it would take about $1 billion in each of those areas to get us where we need to be," said Kaufman, the longtime chairman of the Joint Committee on Revenue. "If we can raise $2 billion, we can make a significant dent in our underinvesting in those areas."

Chip Faulkner, director of communications for Citizens for Limited Taxation, opposes the proposed amendment and any effort to enact a graduated state income tax rate.

"We know this is only the first step," he predicted. "If this gets in, the next income group will be people making half a million, then $100,000, and on down the line."

Faulkner also said the surtax would unfairly punish the wealthy.

"Why should people be penalized for being successful?" he said. "We're already a heavily taxed state. We certainly don't want to go back the old label of Taxachusetts."

Noah Berger, executive director of the nonprofit Massachusetts Budget and Policy Center, however, said the current flat tax system favors the wealthy.

"The way our tax system works now, the highest 1 percent pays a smaller share of income on state and local taxes than everyone else," he said. "I think this proposal helps to address that so our highest income earners begin to start paying closer to the same share of taxes as people with lower incomes pay."

While Massachusetts has a flat income tax rate, property taxes, gas taxes and sales taxes combine to take up a higher percentage of low- and middle-income residents' wages, Berger said.

Faulkner also argued that the state constitution prohibits amendments that allocate funds, meaning there would be no guarantee that revenue raised by the surtax would actually be spent on education and transportation.

"It's unfair to tax people making higher wages, and the big thing is this money will not go where they say it will," Faulkner said. "It's going to go into the black hole known as the general fund."

Supporters of the proposal, however, say it is legal for a constitutional amendment to impose conditions on revenue. They argue the amendment would not actually allocate funds. It would be up to lawmakers to decide which specific programs and areas of public education and transportation would get the new funding.

"Much of the skepticism is coming from corners convinced the Legislature is dedicated to the 'Department of Waste, Fraud and Abuse,'" Kaufman said. "Were some future Legislature to do some end runs around this provision, every citizen of the commonwealth would have standing to sue and take us to court. Since there's not a single legislator who doesn't feel education and transportation are top priorities, why would anyone doubt our commitment to those issues?"

 

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

BACK TO CLT HOMEPAGE