CLT News Release
Wednesday, July 31, 2019
More-Than-Enough is Enough
On Monday the Massachusetts Department of Revenue reported (“FY19
Preliminary Revenues Total $29.693 Billion”):
FY19 Preliminary Revenues Total $29.693 Billion
FY2019 $1.1 billion or 3.8% above annual benchmark; 6.9% increase over
FY18 actual
For Fiscal Year 2019 that ended in June, revenue collections were
$29.693 billion, $1.1 billion or 3.8% above benchmark [$26.661 billion].
This is an increase of $1.916 billion or 6.9% over the actual amount
collected in Fiscal Year 2018....
Additionally, in a letter to the State Comptroller today, DOR certified
that the preliminary total capital gains tax revenue collected in FY19
was $2.06 billion, generating a total FY19 transfer of approximately
$848 million to the Commonwealth Stabilization Fund...
Note that this is a year-over-year revenue increase of $1.916 billion —
almost two billion dollars — a 6.9% rise in revenue over just the past
fiscal year.
This follows the DOR’s previous annual revenue report (“FY18
Preliminary Revenues Total $27.796 Billion”):
FY18 Preliminary Revenues Total $27.796 Billion
FY2018 $1.135 billion or 4.3% above annual benchmark; 8.6% increase over
FY17 actual
For Fiscal Year 2018 that ended in June [2018], revenue collections were
$27.796 billion, $1.135 billion or 4.3% above benchmark [$28.392
billion]. This is an increase of $2.192 billion or 8.6% over the actual
amount collected in Fiscal Year 2017....
Additionally, in a letter to the State Comptroller today, DOR certified
that the preliminary total capital gains tax revenue collected in FY18
was $1.683 billion, generating a total FY18 transfer of approximately
$514 million to the Commonwealth Stabilization Fund ...
Over the past two fiscal years excess revenue pouring into the state’s
treasury increased by $4.108 billion.
Of
that excess revenue, $1.362 billion was transferred into the state’s
“rainy day” fund.
"Revenue surplus" is the preferred term of late that is frequently used
to describe this excess revenue bonanza. “Revenue surplus” deceptively
replaces a more accurate term: "over-taxation" — more money extracted
from taxpayers than is necessary to fund government.
In
2017 the Legislature passed a $40.2 billion budget for FY2018. The
budget that passed two years later and was sent to the governor last
week reportedly totals $43.1 billion — an increase of $1.6 billion over
FY2019 and $2.9 billion over the past two fiscal years.
(That $43.1 billion figure for the budget now on the governor’s desk is
disputed by the Massachusetts Taxpayers Foundation, which
asserts the actual total is $43.6 billion.)
Meanwhile, despite the current, ongoing over-taxation — the bonanza
“revenue surpluses” — House Speaker Robert DeLeo has promised to return
from the Legislature’s summer vacation with the intent of hitting on
already overburdened taxpayers for even more “revenue” to finance
his transportation plans and who knows what other spending schemes.
(“Climate Resiliency”?)
The old axiom on single-minded focus seems appropriate: "If all you
have is a hammer, everything looks like a nail."
“More Is Never Enough (MINE) and apparently never will be,” said CLT
Executive Director Chip Ford. “Voters, especially taxpaying voters,
need to wake up and realize what’s being done to them; then react to it
accordingly.”
Even in Massachusetts more-than-enough is enough — or ought to be.
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Citizens for Limited Taxation ▪ PO
Box 1147 ▪ Marblehead, MA 01945
▪ (781) 639-9709
