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CLT UPDATE
Monday, May 30, 2022
Memorial Day

New Tax Hikes Before Dubious "Tax Relief"?


Jump directly to CLT's Commentary on the News


Most Relevant News Excerpts
(Full news reports follow Commentary)

The Senate on Thursday approved a nearly $50 billion state budget, after adopting more than 500 amendments over three days.

Senate President Karen Spilka said prior to the unanimous vote that she hopes House and Senate negotiators can "quickly" resolve the differences between their fiscal 2023 spending plans.

House and Senate Democrats over the years have often been unable to agree on a consensus budget by the July 1 start of the fiscal year. Failing to reach a timely agreement this year, in particular, could be consequential since legislative leaders are trying to find common ground on other major bills and formal sessions for the year, under legislative rules, end on Sunday, July 31.

During Thursday's session, Senate Minority Leader Bruce Tarr noted the budget bill, passed as state tax collections continue to crest, managed to jack up spending by more than $2 billion but still enlarges the state's significant rainy day savings account. Still, Tarr said, the bill fails to meet the state's statutory responsibility to fully fund regional school transportation....

A Senate Ways and Means spokesman said senators added more than $93 million to the budget through amendments, raising the bill's bottom line to $49.78 billion, which is in the same ballpark as the bill that cleared the House in April.

State House News Service
Thursday, May 26, 2022
Senate Passes Budget, Next Stop Conference Committee


The Senate unanimously approved a $49.78 billion budget for the fiscal year that starts July 1, after tacking on more than $93 million in spending over the course of three days of debate.

A conference committee could be appointed as soon as next week to hash out the Senate's differences with the House, which passed its own version of the budget in April, also in the nearly $50 billion ballpark.

Also Thursday, the Senate gave its final approval to a bill opening up Massachusetts driver's license access to undocumented immigrants. That measure heads to Gov. Baker's desk with 80 percent of senators voting in support, well above the two-thirds needed to override a veto or potentially defeat an amendment in the event Baker tosses it back to the Legislature.

The Senate returns on Tuesday morning, without a formal calendar, following the Memorial Day weekend. The big budget debate's over and there are around nine weeks left in formal sessions if legislative leadership want to push any further priorities onto the floor before the term's end.

State House News Service
Thursday, May 26, 2022
Senate Session Summary - Thursday, May 26, 2022
By Sam Doran


Minority Leader Bruce Tarr uses burlap moneybags to illustrate components of the Senate's nearly $50 billion budget proposal during debate Wednesday. Tarr's "taxpayer sack" was nearly empty, save for an IOU representing Democratic leadership's promise of a future debate on tax relief. [SHNS/Senate Broadcast]

When the Senate Ways and Means Committee rolled out its $49.7 billion budget for fiscal 2023 earlier this month, the bill was, in the eyes of Chairman Michael Rodrigues, "pretty light on policy."

Three days of debate and some 500 adopted amendments later, it's gotten quite a bit heavier.

As is typical for either branch, the Senate loaded its spending bill up with earmarks, to the tune of tens of millions of dollars. And senators were not afraid to add in some policy heft, beefing up their budget with what the Massachusetts Taxpayers Foundations tallied as 104 new outside sections.

Those policy pieces cover everything from protections for providers and seekers of reproductive and gender-affirming health care, to continued permission for remote municipal meetings, to the exoneration of the last woman convicted in the Salem Witch Trials whose name has not yet been cleared.

A substantial lift, sure, for the negotiators who will ultimately come together to settle the differences between the House and Senate. But, the glut of cash in the Bay State's coffers means they'll have the option of throwing money at some problems that may arise -- why haggle over House versus Senate spending priorities if the revenue's there to just fund both? ...

Minority Leader Bruce Tarr, never one to shy away from a prop, illustrated his point with a series of burlap moneybags. The biggest represented the budget's billions in spending, while a smaller one, labeled "Taxpayer," was nearly empty, save for an IOU.

Thursday evening, with debate wrapped up, Tarr ceremoniously presented Rodrigues with that Taxpayer Sack, saying he hoped the chairman would find a way to fill it up with tax breaks in the next two months.

Top Senate Democrats have said they want to tackle tax relief sometime after the budget. Since budget talks often stretch into July and formal sessions this year end on July 31, the timing question looms larger.

Tax changes have to start in the House, and leadership in that branch has also been sparse on details of what might emerge, or when.

Speaker Ronald Mariano said Thursday he's having the Revenue Committee run some numbers, and that the House will "try and put some things together" with the goal of a "more equitable dispersal of the benefits and tax benefits." ...

With lawmakers still playing their cards close to the vest on what future tax-relief efforts might look like, an official opposition campaign to a potential new tax launched on Monday. The Coalition to Stop the Tax Hike Amendment kicked off its efforts to defeat the November ballot question that would write a 4 percent surtax on income over $1 million into the state's Constitution.

While opponents warn against the potential of writing lawmakers a "blank check" with the new tax, the money it would raise is intended to go toward transportation and education needs.

State House News Service
Friday, May 27, 2022
Weekly Roundup - In The Bag


The state Senate approved a nearly $50 billion budget on Thursday after plowing millions of dollars in new spending into the package, but rejected a buffet of proposed tax cuts and a temporary holiday from the state's gas tax.

The spending package, which passed unanimously, calls for tapping the state's record surplus revenues to make major investments in schools, child care, workforce development and housing while boosting state aid to communities.

"This is a truly terrific budget," Senate President Karen Spilka, D-Ashland, said in remarks ahead of its passage. "From the start, this budget has been about getting money, and keeping money, in the pockets of people who keep this commonwealth moving forward." ...

While there are no wholesale tax or fee increases in the spending bill, the Senate's Democratic majority rejected a $700 million buffet of proposed tax cuts that were part of Baker’s preliminary budget package filed in January.

Baker’s proposal called for adjusting state income tax laws and boosting rent deductions to provide relief for low-income residents, expanding tax credits for housing and child care, and a major overhaul of the estate or "death" tax.

Senate Republicans also made another push to suspend the state's gas tax of 24 cents per gallon through Labor Day as part of the budget deliberations, but the proposed amendments were rejected by the Democratic majority, who said they would affect the state’s bond rating and provide minimal relief for motorists.

Senate Minority Leader Bruce Tarr, R-Gloucester, said the state is awash with surplus revenue and can afford to provide relief for consumers who are paying higher prices for food, gas and other goods amid supply chain disruptions and record-high inflation.

"We don't know if that inflationary number will change but we know it's going to have a significant detrimental effect," Tarr said in remarks Wednesday. "We have an obligation to take these reasonable actions — a fraction of one month of excess revenue — to respond and help them weather the storm and gain a little bit of traction, survive and prosper."

Ahead of this week's budget debate, Spilka said she wants to pursue a tax relief package before the end of the session but has not provided additional details.

On Wednesday, Senate Ways & Means Chairman Michael Rodrigues defended the Democratic majority's rejection of the tax cuts and pointed out that the Senate's spending plan includes funding to help taxpayers struggling with higher costs.

"This body has not stood by and done nothing. We have done enormous things to help," Rodrigues said in remarks during the budget debate. "Just the fact that we're passing close to a $50 billion budget with money for services that assist every resident in education, child care, mental health, health care."

Rodrigues argued that Baker's tax cuts are skewed toward the state’s wealthiest and said the Senate intends to hold a "comprehensive tax debate to ensure that those residents that deserve it most will get the largest share of tax breaks." ...

House Republicans also sought to amend the spending package to include parts of Baker’s tax cuts plan and a gas tax holiday, but the proposals were rejected.

During closing remarks in the Senate budget debate, Tarr walked across the chamber and handed Rodrigues a burlap "taxpayer sack" with proposals to cut taxes.

"I'm hoping, in giving this to you, that within the next 40 days you will find a way to fill it with tax relief for the citizens of the commonwealth," Tarr said.

The Salem News
Friday, May 27, 2022
Senate approves nearly $50B state budget


House Speaker Ronald Mariano said the House is working to assemble a tax relief package by the end of July and that he has a willing dance partner in the Senate, but he also indicated Thursday that relief is not where the tax talk is likely to end.

"We're gonna try and put some things together. There's still two or three things that I'd like to do that I'm having the numbers run through Revenue [Committee]. I want a more equitable dispersal of the benefits and tax benefits," Mariano told reporters Thursday after addressing the Greater Boston Chamber of Commerce.

The speaker, who has said for months that he is open to the idea of tax relief without having advanced Gov. Charlie Baker's proposals or outlined his own, said the idea of changing the threshold at which the estate tax kicks in "was something that jumped out at us right away," but otherwise did not get into the details of what a House relief package might look like.

Senate President Karen Spilka has also said that she wants to get a tax relief bill through her chamber and said she will turn her attention to the issue after the Senate budget debate is over. Mariano said his conversations with Spilka give him "the impression that she does want to do something."

But while tax relief may dominate the tax-related talks between now and the end of formal lawmaking in July, Mariano said in his remarks to business groups Thursday that "it's absolutely critical for the Legislature to continue to look for new, smart ways to generate more revenue for the commonwealth." ...

Asked by a reporter if he has given any consideration to a tax on services, the speaker said he had not "per se."

"But it's an interesting avenue to look at though and I will take a look at that. I don't know exactly how you would structure that and how we would identify these services, but there may be something there," Mariano said.

State House News Service
Thursday, May 26, 2022
Speaker Exploring New Revenues, On Top Of Tax Relief


Opponents of the proposed surtax on household income over $1 million launched their campaign Monday morning to defeat the Constitutional amendment on November's ballot, focusing on the potential impact on small businesses and retirees as well as the possibility that the Legislature treats the estimated $1.3 billion in annual surtax revenue as a "blank check."

The Coalition to Stop the Tax Hike Amendment, a group of small businesses, chambers of commerce, some of the state's most influential trade organizations, retirees and concerned citizens, formally kicked off its anti-surtax efforts and said its members have "united to communicate to voters the damage this massive tax increase will have on our state's economy."

"Proponents of the amendment claim that it will raise taxes only on Massachusetts' highest earners, but in practice, it will harm hardworking families across the state," Dan Cence, a veteran lobbyist and political strategist and spokesperson for the Coalition to Stop the Tax Hike Amendment, said. "Massachusetts already has a budget surplus of billions of dollars. We must work together to strengthen our economy and ensure Massachusetts remains a place where small business owners can thrive." ...

"The Tax Hike Amendment is not just a tax on people making a million dollars a year. It will also tax the nest eggs of longtime homeowners and small business owners whose retirement depends on their investments," the coalition wrote on the fact sheets. "That is because, unlike federal taxes, this amendment would treat one-time gains from selling a home or business as regular income, pushing many retirees and small business owners into the new higher tax bracket, and nearly doubling their taxes." ...

In its launch Monday, the coalition also called attention to the fact that while the amendment itself would require the surtax revenue to be spent on transportation and education, it would not necessarily lead to actual increases in spending on transportation and education because future Legislatures could stop appropriating money from other revenue sources to those areas.

"As the former head of the MBTA, I know there is zero guarantee that the money raised from this amendment will increase education and transportation spending. Due to a loophole in the amendment, 'subject to appropriation' means legislators can take this money and use it for their own pet projects -- it means giving Beacon Hill a blank check with no accountability," Brian Shortsleeve, a former general manager at the T who has since founded M33 Growth, said.

Lisa Alcock, a former public school teacher, echoed the same sentiment in her comments on the coalition's website. She said the amendment is "deceptive" and that "the politicians who put this on the ballot are giving themselves a blank check to redirect existing funding for education and transportation to their own pet projects, with no accountability."

State House News Service
Monday, May 23, 2022
Surtax Opponents Warn Against Beacon Hill “Blank Check”
Opposition Campaign Forms, Accelerating Debate


A newly formed coalition of business groups launched a campaign to defeat the proposed millionaires’ tax, foreshadowing what could be a costly battle over the proposed constitutional amendment ahead of the November elections.

The Coalition to Stop the Tax Hike Amendment, which includes business groups, chambers of commerce, hoteliers, developers and “concerned citizens,” argues that the proposed 4% surtax on the state’s top earners would be “one of the state’s highest income tax increases in history,” affecting tens of thousands of residents.

“Now, more than ever, is not the right time to raise income taxes,” Dan Cence, the coalition’s spokesman, said in a statement. “Proponents of the amendment claim that it will raise taxes only on Massachusetts’ highest earners, but in practice, it will harm hardworking families across the state.” ...

“There is nothing fair about subjecting small businesses who serve as the backbone of the Massachusetts economy to a constitutionally locked-in income tax increase,” said Chris Carlozzi, state director of the Massachusetts chapter of the National Federation of Independent Business, a member of the coalition.

“Not only does the income tax hike reduce a pass-through small business’ ability to reinvest in their operation and their employees, but it also taxes the owner at a higher rate when they seek to sell their business and retire,” Carlozzi said.

Members of the coalition, which include Associated Industries of Massachusetts, the Massachusetts Seafood Collaborative, Retailers Association of Massachusetts, and the Pioneer Institute, note that the state’s voters have several times rejected proposals to replace the state’s flat personal income tax with a graduated rate....

The Raise Up Massachusetts coalition, a coalition of labor unions, community and faith groups behind the referendum, dismissed the newly formed opposition group and accused them of distorting details of the proposed amendment.

“The super-rich got richer during the pandemic, and a small number of them will say anything to keep from paying their fair share to build a better future for Massachusetts families,” said Steve Crawford, the coalition’s spokesman....

“The Fair Share Amendment is simple: If you earn less than a million dollars in a year you won’t pay a penny more. Only the very rich will pay a little extra,” he added. “And the money raised is constitutionally required to be spent on making our kids’ schools better and fixing our roads, bridges, and transit.”

The referendum faces a challenge from a lawsuit filed by Massachusetts High Technology Council and other opponents who argue that backers of the surtax may try to mislead voters by using an “inaccurate” summary of the referendum.

They say despite claims the money will be used for education and transportation, lawmakers could divert the funds for other purposes and voters should know that before they go to the polls.

The outcome of the legal challenge is pending a ruling by the state Supreme Judicial Court, which heard arguments in the case about three weeks ago.

The Salem News
Tuesday, May 24, 2022
Coalition forms to oppose millionaires' tax


Gov. Charlie Baker on Friday vetoed a bill making immigrants without legal status eligible to seek state-issued driver's licenses, saying the Registry of Motor Vehicles, an agency that he oversees, doesn't have the ability to verify the identities of potential applicants.

Following years of advocacy for the bill, House and Senate Democrats on Thursday enacted the legislation, which supporters say will make the roads safer by granting access to licenses for many undocumented immigrants who are already living throughout the state.

Republican opposition to the bill was steady throughout its journey through the Legislature, and officeholders and candidates at the GOP convention last weekend in Springfield sporadically and pointedly expressed their opposition to the proposal.

In his veto message, Baker said the legislation "significantly increases the risk that noncitizens will be registered to vote," a possibility that bill supporters have refuted. The governor said the bill "restricts the Registry's ability to share citizenship information with those entities responsible for ensuring that only citizens register for and vote in our elections."

The bill cleared both branches with more than enough support to override Baker's veto.

State House News Service
Friday, May 27, 2022
Baker Vetoes Immigrant License Access Bill
Voting, Verification Concerns Outlined In Veto Message


One day after state legislators approved a bill to allow undocumented immigrants to get driver’s licenses in Massachusetts, Governor Charlie Baker vetoed the measure, saying it poses a risk to election security.

In a letter rejecting the legislation late Friday afternoon, Baker said the bill requires the Registry of Motor Vehicles “to issue state credentials to people without the ability to verify their identity” and “increases the risk that noncitizens will be registered to vote.”

He also expressed concern that the identification wouldn’t distinguish an undocumented person from a documented one.

“Consequently, a standard Massachusetts driver’s license will no longer confirm that a person is who they say they are,” Baker wrote.

The House and the Senate voted overwhelmingly to approve the bill Thursday, supporting it 118-36 and 32-8, respectively.

Those margins were large enough to override Baker’s veto. A two-thirds vote is required in each branch to override the governor’s veto and make the bill law.

A spokesperson for Senate President Karen E. Spilka said the chamber will override, but did not provide a date. The House will override the veto during its next formal session on June 8, according to a spokeswoman for House Speaker Ronald J. Mariano.

In a tweet, Spilka called Baker’s veto “misguided” and said her chamber looks forward to overriding it.

The Boston Globe
Friday, May 27, 2022
Governor Baker vetoes bill to give driver’s licenses to undocumented residents


A big winner in last weekend’s Republican convention was a Democrat.

That would be Attorney General Maura Healey, the two-term progressive who is running for governor....

So, if Diehl wins the GOP primary over fist time candidate Doughty, as expected, he will face a well-funded Healey, who may not even face a primary challenge.

Healey, who has scored a series of Democrat and progressive endorsements — but has not heard from Joe Biden — has raised close to $5 million in campaign funds.

This compares to the less than $400,000 that Diehl has raised.

Doughty, a successful manufacturer, has put $500,000 of his own fortune — and perhaps more to come — into his campaign, which makes one wonder what his six children and four grandchildren are thinking.

Still, Healey has easily raised more money than the two Republicans combined, and you could throw in Chang-Diaz as well, and the three do not come close to equaling the cash Healey has on hand....

If the convention vote is any indication, Diehl should beat Doughty in the primary. In 2018 Diehl beat out two other Republicans for the U.S. Senate nomination only to lose to Democrat Elizabeth Warren. So he is better known.

But that is only the beginning. There are only 459,663 registered Republicans in Massachusetts, compared to 1,494,990 registered Democrats. Diehl could win every Republican primary vote and he would still be well behind Healey, both in votes and in money.

However, there are 2,717,293 unenrolled voters, or Independents, who normally do not vote in September primaries. But they do vote in November.

Diehl is a longshot, for sure, even if he wins the primary. But we live in strange, angry and anything-can-happen times.

Diehl needs to nationalize the election. With Trump at his back, needs to make the election about Joe Biden, who Healey supports, even as Biden has brought the country to its knees.

Gas prices? Food costs? Crime? Drugs? Homelessness? Illegal immigration? No baby formula? Empty shelves? Hate? Divisiveness? Afghanistan? Joe Biden has failed on every front.

Democrat election officials are now treating Biden as though he had monkeypox.

Yes, Biden whipped Trump in Massachusetts in 2020 when 2,382, 202 people voted for him. He would not get that vote today. Trump back then got 1,167,202 votes. Today he would get those same votes and more.

Biden sold out his supporters to a bunch or radicals. Now his disenchanted supporters — Democrats and Independents — are deserting him. These are the people Diehl must go after if he has any chance at all. They are out there; you just have to get them.

The Boston Herald
Wednesday, May 25, 2022
Race for governor must be about gas, crime and no baby formula
By Peter Lucas


The perfect Donald Trump storm is brewing in Massachusetts — an unabashed conservative taking on the Democratic power structure, a liberal candidate and the left-wing media.

So it’s no surprise Trump is considering making an appearance for gubernatorial candidate Geoff Diehl’s campaign.

A Trump rally would take the Bay State gubernatorial race national — which is just what Diehl wants — and shine a spotlight on the former state rep and failed U.S. Senate candidate.

It would also bring in cash, notoriety and of course plenty of criticism in the establishment media and in the Democratic party.

Democratic front-runner Attorney General Maura Healey is the perfect Trump foil — she has sued the former president dozens of times and at times seemed obsessed by him.

Healey has tried to hang the Trump label on Diehl and he seems perfectly willing to embrace it.

Trump and Diehl would also be running against the state Democratic Party establishment, including the super-liberal Legislature, which has resisted passing tax cuts despite a huge state surplus and just passed a bill allowing non-citizen immigrants to get a drivers’ license....

The question for Diehl is can he stitch together enough of a coalition of staunch conservatives, veterans, law enforcement, anti-vaxers and others to win the primary and make it a contest against Healey or the other Democrat, Sonia Chang-Diaz?

Trump may be able to help fire up conservatives — more than a million of them voted for him in 2020 in Massachusetts — but he’ll also energize Democrats, too.

Whether the former president makes an actual visit to the Bay State is in question — he’s promised to do “something” for Diehl but he may not want to invest too much time in a race he’s likely to lose.

The Boston Herald
Saturday, May 28, 2022
Trump perfect political storm brewing in Massachusetts
By Joe Battenfeld


Chip Ford's CLT Commentary

The Salem News reported on Friday ("Senate approves nearly $50B state budget"):

The state Senate approved a nearly $50 billion budget on Thursday after plowing millions of dollars in new spending into the package, but rejected a buffet of proposed tax cuts and a temporary holiday from the state's gas tax.

The spending package, which passed unanimously, calls for tapping the state's record surplus revenues to make major investments in schools, child care, workforce development and housing while boosting state aid to communities.

"This is a truly terrific budget," Senate President Karen Spilka, D-Ashland, said in remarks ahead of its passage. "From the start, this budget has been about getting money, and keeping money, in the pockets of people who keep this commonwealth moving forward." ...

While there are no wholesale tax or fee increases in the spending bill, the Senate's Democratic majority rejected a $700 million buffet of proposed tax cuts that were part of Baker’s preliminary budget package filed in January....

On Wednesday, Senate Ways & Means Chairman Michael Rodrigues defended the Democratic majority's rejection of the tax cuts and pointed out that the Senate's spending plan includes funding to help taxpayers struggling with higher costs.

"This body has not stood by and done nothing. We have done enormous things to help," Rodrigues said in remarks during the budget debate. "Just the fact that we're passing close to a $50 billion budget with money for services that assist every resident in education, child care, mental health, health care."

Rodrigues argued that Baker's tax cuts are skewed toward the state’s wealthiest and said the Senate intends to hold a "comprehensive tax debate to ensure that those residents that deserve it most will get the largest share of tax breaks." ...

House Republicans also sought to amend the spending package to include parts of Baker’s tax cuts plan and a gas tax holiday, but the proposals were rejected.

During closing remarks in the Senate budget debate, Tarr walked across the chamber and handed Rodrigues a burlap "taxpayer sack" with proposals to cut taxes.

"I'm hoping, in giving this to you, that within the next 40 days you will find a way to fill it with tax relief for the citizens of the commonwealth," Tarr said.

Minority Leader Bruce Tarr uses burlap moneybags to illustrate components of the Senate's nearly $50 billion budget proposal during debate Wednesday. Tarr's "taxpayer sack" was nearly empty, save for an IOU representing Democratic leadership's promise of a future debate on tax relief. [SHNS/Senate Broadcast]

In its Weekly Roundup on Friday, the State House News Service noted:

When the Senate Ways and Means Committee rolled out its $49.7 billion budget for fiscal 2023 earlier this month, the bill was, in the eyes of Chairman Michael Rodrigues, "pretty light on policy."

Three days of debate and some 500 adopted amendments later, it's gotten quite a bit heavier.

As is typical for either branch, the Senate loaded its spending bill up with earmarks, to the tune of tens of millions of dollars. And senators were not afraid to add in some policy heft, beefing up their budget with what the Massachusetts Taxpayers Foundations tallied as 104 new outside sections.

Those policy pieces cover everything from protections for providers and seekers of reproductive and gender-affirming health care, to continued permission for remote municipal meetings, to the exoneration of the last woman convicted in the Salem Witch Trials whose name has not yet been cleared.

A substantial lift, sure, for the negotiators who will ultimately come together to settle the differences between the House and Senate. But, the glut of cash in the Bay State's coffers means they'll have the option of throwing money at some problems that may arise -- why haggle over House versus Senate spending priorities if the revenue's there to just fund both?

On Thursday the News Service reported ("Speaker Exploring New Revenues, On Top Of Tax Relief"):

House Speaker Ronald Mariano said the House is working to assemble a tax relief package by the end of July and that he has a willing dance partner in the Senate, but he also indicated Thursday that relief is not where the tax talk is likely to end.

"We're gonna try and put some things together. There's still two or three things that I'd like to do that I'm having the numbers run through Revenue [Committee]. I want a more equitable dispersal of the benefits and tax benefits," Mariano told reporters Thursday after addressing the Greater Boston Chamber of Commerce.

The speaker, who has said for months that he is open to the idea of tax relief without having advanced Gov. Charlie Baker's proposals or outlined his own, said the idea of changing the threshold at which the estate tax kicks in "was something that jumped out at us right away," but otherwise did not get into the details of what a House relief package might look like.

Senate President Karen Spilka has also said that she wants to get a tax relief bill through her chamber and said she will turn her attention to the issue after the Senate budget debate is over. Mariano said his conversations with Spilka give him "the impression that she does want to do something."

But while tax relief may dominate the tax-related talks between now and the end of formal lawmaking in July, Mariano said in his remarks to business groups Thursday that "it's absolutely critical for the Legislature to continue to look for new, smart ways to generate more revenue for the commonwealth." ...

Asked by a reporter if he has given any consideration to a tax on services, the speaker said he had not "per se."

"But it's an interesting avenue to look at though and I will take a look at that. I don't know exactly how you would structure that and how we would identify these services, but there may be something there," Mariano said.

"But while tax relief may dominate the tax-related talks between now and the end of formal lawmaking in July, Mariano said in his remarks to business groups Thursday that 'it's absolutely critical for the Legislature to continue to look for new, smart ways to generate more revenue for the commonwealth.'"

I think I see where this "tax relief" is going.

The House and Senate budgets propose spending over $2 Billion more than last year's budget, including pouring hundreds of millions more into the "rainy day" fund bulging it to a record level of $6.74 billion.  It's become difficult for legislators to answer why none of this largesse can be allocated back to those who earned and over-paid it, so they've come up with a fig leaf response if they can't figure out a way to stall it into oblivion.

"I want a more equitable dispersal of the benefits and tax benefits," House Speaker Ron Mariano told reporters.

"From each according to his ability to each according to his needs" seems to be the game plan.  Those who paid the least taxes will receive the most "tax relief" benefits if they can't come up with a way to stall it into oblivion.

And if they can't come up with a way to stall it into oblivion, they'll simply increase taxes somewhere else to cover the cost and then some no doubt.

Need I remind you that they're still counting on the additional bounty they hope will be raked in by the proposed graduated income tax scheme that will be on the November ballot, their "Fair Share Amendment," aka, "Millionaire's Tax"?


In its Weekly Roundup on Friday the News Service noted:

As is typical for either branch, the Senate loaded its spending bill up with earmarks, to the tune of tens of millions of dollars. And senators were not afraid to add in some policy heft, beefing up their budget with what the Massachusetts Taxpayers Foundations tallied as 104 new outside sections.

The Senate's budget as passed is not yet available online so I haven't been able to scour it yet to see if any of the stealth assaults on Proposition 2½ are contained in any of those policy change outside sections.  Hopefully, the unavailability yet of the Senate budget isn't the pinnacle of stealth.


News on the graduated income tax front was reported by the News Service on Monday ("Surtax Opponents Warn Against Beacon Hill “Blank Check”Opposition Campaign Forms, Accelerating Debate")

Opponents of the proposed surtax on household income over $1 million launched their campaign Monday morning to defeat the Constitutional amendment on November's ballot, focusing on the potential impact on small businesses and retirees as well as the possibility that the Legislature treats the estimated $1.3 billion in annual surtax revenue as a "blank check."

The Coalition to Stop the Tax Hike Amendment, a group of small businesses, chambers of commerce, some of the state's most influential trade organizations, retirees and concerned citizens, formally kicked off its anti-surtax efforts and said its members have "united to communicate to voters the damage this massive tax increase will have on our state's economy." ...

"The Tax Hike Amendment is not just a tax on people making a million dollars a year. It will also tax the nest eggs of longtime homeowners and small business owners whose retirement depends on their investments," the coalition wrote on the fact sheets. "That is because, unlike federal taxes, this amendment would treat one-time gains from selling a home or business as regular income, pushing many retirees and small business owners into the new higher tax bracket, and nearly doubling their taxes." ...

In its launch Monday, the coalition also called attention to the fact that while the amendment itself would require the surtax revenue to be spent on transportation and education, it would not necessarily lead to actual increases in spending on transportation and education because future Legislatures could stop appropriating money from other revenue sources to those areas.

"As the former head of the MBTA, I know there is zero guarantee that the money raised from this amendment will increase education and transportation spending. Due to a loophole in the amendment, 'subject to appropriation' means legislators can take this money and use it for their own pet projects -- it means giving Beacon Hill a blank check with no accountability," Brian Shortsleeve, a former general manager at the T who has since founded M33 Growth, said.

On Tuesday The Salem News added ("Coalition forms to oppose millionaires' tax"):

The Coalition to Stop the Tax Hike Amendment, which includes business groups, chambers of commerce, hoteliers, developers and “concerned citizens,” argues that the proposed 4% surtax on the state’s top earners would be “one of the state’s highest income tax increases in history,” affecting tens of thousands of residents.

“Now, more than ever, is not the right time to raise income taxes,” Dan Cence, the coalition’s spokesman, said in a statement. “Proponents of the amendment claim that it will raise taxes only on Massachusetts’ highest earners, but in practice, it will harm hardworking families across the state.” ...

“There is nothing fair about subjecting small businesses who serve as the backbone of the Massachusetts economy to a constitutionally locked-in income tax increase,” said Chris Carlozzi, state director of the Massachusetts chapter of the National Federation of Independent Business, a member of the coalition.

“Not only does the income tax hike reduce a pass-through small business’ ability to reinvest in their operation and their employees, but it also taxes the owner at a higher rate when they seek to sell their business and retire,” Carlozzi said....

The referendum faces a challenge from a lawsuit filed by Massachusetts High Technology Council and other opponents who argue that backers of the surtax may try to mislead voters by using an “inaccurate” summary of the referendum.

They say despite claims the money will be used for education and transportation, lawmakers could divert the funds for other purposes and voters should know that before they go to the polls.

The outcome of the legal challenge is pending a ruling by the state Supreme Judicial Court, which heard arguments in the case about three weeks ago.

It's game-on for the opposition to this sixth attempt to impose a graduated income tax in Massachusetts by amending the state constitution, forever.  Citizens for Limited Taxation led the opposition to the last two attempts and defeated both on the ballots in 1976 and 1994.  I'm gratified to see others with much deeper pockets taking up the leadership this time.  CLT is behind their effort completely.  All my life as an activist I've heard "I'm behind you all the way!" but when I turned and looked back there were so few.  At least this newly-minted group, The Coalition to Stop the Tax Hike Amendment, starts out with numbers and financial backing.


Gov. Baker did the right thing on Friday, vetoing the driver's license for illegal immigrants bill overwhelmingly passed in both the House and Senate, but as with most "right thing" vetoes he exercises, it's with the full knowledge that his veto won't make any difference.

The State House News Service reported on Friday ("Baker Vetoes Immigrant License Access BillVoting, Verification Concerns Outlined In Veto Message"):

Gov. Charlie Baker on Friday vetoed a bill making immigrants without legal status eligible to seek state-issued driver's licenses, saying the Registry of Motor Vehicles, an agency that he oversees, doesn't have the ability to verify the identities of potential applicants.

Following years of advocacy for the bill, House and Senate Democrats on Thursday enacted the legislation, which supporters say will make the roads safer by granting access to licenses for many undocumented immigrants who are already living throughout the state.

Republican opposition to the bill was steady throughout its journey through the Legislature, and officeholders and candidates at the GOP convention last weekend in Springfield sporadically and pointedly expressed their opposition to the proposal.

In his veto message, Baker said the legislation "significantly increases the risk that noncitizens will be registered to vote," a possibility that bill supporters have refuted. The governor said the bill "restricts the Registry's ability to share citizenship information with those entities responsible for ensuring that only citizens register for and vote in our elections."

The bill cleared both branches with more than enough support to override Baker's veto.

Massachusetts is about to create overnight tens of thousands of undocumented Democrats, and I predict it's only a short matter of time before the first voting "scandal" is revealed maybe even by November.


There were a couple of interesting opinion perspectives in The Boston Herald over the past week concerning the race for governor.

In his column on Wednesday ("Race for governor must be about gas, crime and no baby formula") veteran Massachusetts political reporter and columnist Peter Lucas offers:

. . . Diehl is a longshot, for sure, even if he wins the primary. But we live in strange, angry and anything-can-happen times.

Diehl needs to nationalize the election. With Trump at his back, needs to make the election about Joe Biden, who Healey supports, even as Biden has brought the country to its knees.

Gas prices? Food costs? Crime? Drugs? Homelessness? Illegal immigration? No baby formula? Empty shelves? Hate? Divisiveness? Afghanistan? Joe Biden has failed on every front.

Democrat election officials are now treating Biden as though he had monkeypox.

Yes, Biden whipped Trump in Massachusetts in 2020 when 2,382, 202 people voted for him. He would not get that vote today. Trump back then got 1,167,202 votes. Today he would get those same votes and more.

Biden sold out his supporters to a bunch or radicals. Now his disenchanted supporters — Democrats and Independents — are deserting him. These are the people Diehl must go after if he has any chance at all. They are out there; you just have to get them.

This was followed up on Saturday by Herald columnist Joe Battenfeld ("Trump perfect political storm brewing in Massachusetts") in which posits:

The perfect Donald Trump storm is brewing in Massachusetts — an unabashed conservative taking on the Democratic power structure, a liberal candidate and the left-wing media.

So it’s no surprise Trump is considering making an appearance for gubernatorial candidate Geoff Diehl’s campaign....

The question for Diehl is can he stitch together enough of a coalition of staunch conservatives, veterans, law enforcement, anti-vaxers and others to win the primary and make it a contest against Healey or the other Democrat, Sonia Chang-Diaz?

Trump may be able to help fire up conservatives — more than a million of them voted for him in 2020 in Massachusetts — but he’ll also energize Democrats, too.

Whether the former president makes an actual visit to the Bay State is in question — he’s promised to do “something” for Diehl but he may not want to invest too much time in a race he’s likely to lose.

Chip Ford
Executive Director


Full News Reports
(excerpted above)

State House News Service
Thursday, May 26, 2022
Senate Passes Budget, Next Stop Conference Committee
By Michael P. Norton


The Senate on Thursday approved a nearly $50 billion state budget, after adopting more than 500 amendments over three days.

Senate President Karen Spilka said prior to the unanimous vote that she hopes House and Senate negotiators can "quickly" resolve the differences between their fiscal 2023 spending plans.

House and Senate Democrats over the years have often been unable to agree on a consensus budget by the July 1 start of the fiscal year. Failing to reach a timely agreement this year, in particular, could be consequential since legislative leaders are trying to find common ground on other major bills and formal sessions for the year, under legislative rules, end on Sunday, July 31.

During Thursday's session, Senate Minority Leader Bruce Tarr noted the budget bill, passed as state tax collections continue to crest, managed to jack up spending by more than $2 billion but still enlarges the state's significant rainy day savings account. Still, Tarr said, the bill fails to meet the state's statutory responsibility to fully fund regional school transportation.

Senate budget chief Michael Rodrigues ticked off areas where the Senate bill made investments, including early, K-12 and higher education, health care, workforce accounts, housing aid. Spilka said the bill fully funds the state's obligation under the Student Opportunity Act, a landmark education bill that seeks to plug gaps in local education budgets over a seven-year stretch.

A Senate Ways and Means spokesman said senators added more than $93 million to the budget through amendments, raising the bill's bottom line to $49.78 billion, which is in the same ballpark as the bill that cleared the House in April.

Rodrigues, of Westport, and House Ways and Means Chair Aaron Michlewitz of Boston will lead budget negotiations in conference. The two branches will name six conferees, and the conference panel will almost certainly vote to conduct its work entirely in private.

House conferees will be presented with a pair of major Senate policy measures. Through amendments, the Senate agreed on Thursday to a ban on non-disclosure agreements across state government. On Wednesday, the Senate agreed to licensing protections for doctors and other professionals involved with the provision of reproductive care -- which covers not just abortion but also contraception, miscarriage management and other pregnancy-related services -- or many supportive treatments for gender dysphoria.


State House News Service
Friday, May 27, 2022
Weekly Roundup - In The Bag
Recap and analysis of the week in state government
By Katie Lannan


When the Senate Ways and Means Committee rolled out its $49.7 billion budget for fiscal 2023 earlier this month, the bill was, in the eyes of Chairman Michael Rodrigues, "pretty light on policy."

Three days of debate and some 500 adopted amendments later, it's gotten quite a bit heavier.

As is typical for either branch, the Senate loaded its spending bill up with earmarks, to the tune of tens of millions of dollars. And senators were not afraid to add in some policy heft, beefing up their budget with what the Massachusetts Taxpayers Foundations tallied as 104 new outside sections.

Those policy pieces cover everything from protections for providers and seekers of reproductive and gender-affirming health care, to continued permission for remote municipal meetings, to the exoneration of the last woman convicted in the Salem Witch Trials whose name has not yet been cleared.

A substantial lift, sure, for the negotiators who will ultimately come together to settle the differences between the House and Senate. But, the glut of cash in the Bay State's coffers means they'll have the option of throwing money at some problems that may arise -- why haggle over House versus Senate spending priorities if the revenue's there to just fund both?

The House and Senate don't just differ on what they put in their budget, but how they formally build it.

While much of the work in House Budget Week goes unspoken as consolidated amendment packages are cobbled together behind the scenes and adopted with little to no debate, the Senate's features an almost constant stream of speeches.

The Senate speeds up its process by bulk-voting "yes" or "no" on bundles of amendments compiled by leadership, but almost every amendment it adopts outside of that process -- and quite a few that are withdrawn or rejected -- comes with a detailed introduction from its sponsor.

For the body's handful of statewide candidates, it's an opportunity for facetime and potential headlines.

Lieutenant governor hopefuls Sens. Eric Lesser and Adam Hinds and auditor contender Sen. Diana DiZoglio gave multiple speeches, while gubernatorial candidate Sen. Sonia Chang-Diaz was quieter.

As outgoing Gov. Charlie Baker was in Nashville Wednesday for an election-year confab with other GOP governors, the Senate's trio of Republicans took up his call for tax breaks, unsuccessfully making the case that the budget should return some of the state's surplus to the residents who provided it in the first place.

Minority Leader Bruce Tarr, never one to shy away from a prop, illustrated his point with a series of burlap moneybags. The biggest represented the budget's billions in spending, while a smaller one, labeled "Taxpayer," was nearly empty, save for an IOU.

Minority Leader Bruce Tarr uses burlap moneybags to illustrate components of the Senate's nearly $50 billion budget proposal during debate Wednesday. Tarr's "taxpayer sack" was nearly empty, save for an IOU representing Democratic leadership's promise of a future debate on tax relief. [SHNS/Senate Broadcast]

Thursday evening, with debate wrapped up, Tarr ceremoniously presented Rodrigues with that Taxpayer Sack, saying he hoped the chairman would find a way to fill it up with tax breaks in the next two months.

Top Senate Democrats have said they want to tackle tax relief sometime after the budget. Since budget talks often stretch into July and formal sessions this year end on July 31, the timing question looms larger.

Tax changes have to start in the House, and leadership in that branch has also been sparse on details of what might emerge, or when.

Speaker Ronald Mariano said Thursday he's having the Revenue Committee run some numbers, and that the House will "try and put some things together" with the goal of a "more equitable dispersal of the benefits and tax benefits."

Addressing the Greater Boston Chamber of Commerce, Mariano identified ongoing conference talks involving offshore wind and legalization of sports betting -- where he knocked the Senate's approach as "paternalistic" -- as his areas of top importance on the end-of-session agenda. Once those are resolved, he said, lawmakers can "begin to start to tackle some other things that we have that might be a little bit less confrontational."

"Anyone who's been involved with the Legislature knows that we operate best up against deadlines because it forces people to take a realistic view of their position," Mariano said.

The House added another bulletpoint to the Legislature's pre-July 31 to-do list, sending the Senate a bill that would have Massachusetts join the ranks of 48 other states with some sort of ban on the sharing of sexually explicit images without the subject's consent. The bill also creates new, non-criminal options for responding to teen sexting cases.

Baker for years has been pushing lawmakers to take up "revenge porn" legislation, and now that the House has, the bill representatives passed goes a somewhat different route than the governor has proposed. Rather than establishing a new criminal offense, like Baker suggested, the House opted to update existing criminal harassment laws.

Baker and legislative Democrats are much further apart on a bill that would allow Massachusetts residents without legal immigration status to apply for and obtain standard state driver's licenses.

Over unanimous Republican opposition, the House and Senate shipped Baker the final version of their license-access bill on Thursday. Less than 24 hours later, he sent it back, vetoed.

Baker's Friday afternoon veto message echoes many of the concerns he raised while the bill, the subject of years of impassioned advocacy, was working its way to his desk over the past few months -- he says the Registry of Motor Vehicles isn't equipped to verify foreign identify document and worries about the risk of noncitizens ending up registered to vote.

The veto is largely symbolic, as Democrats in both branches have the numbers to override it.

Two of the Democrats running for attorney general this week returned to an old friend of Massachusetts office-seekers, reviving the "People's Pledge" for yet another campaign season.

The latest incarnation, like the original version signed a decade ago by then-Sen. Scott Brown and his challenger Elizabeth Warren, aims to discourage outside spending by super PACs. Unlike the Brown-Warren pledge, this one doesn't have the signature of all candidates in the race.

Shannon Liss-Riordan and Quentin Palfrey signed their pledge outside the State House Monday, calling on fellow Democrat Andrea Campbell to do the same.

A day later, Environmental League of Massachusetts Action Fund's independent expenditure political action committee reported the contest's first super PAC spending -- about $1,500 on mailers supporting Campbell.

The super PAC spent the same amount on its two other favored statewide candidates, Chris Dempsey for auditor and Maura Healey for governor. The committee's treasurer, Elizabeth Henry, called the three Democrats "proven, effective leaders, committed to making environmental and climate action a top priority."

Healey, in her day job as attorney general, this week filed suit against 13 manufacturers of the "forever chemicals" known as PFAS, charging them with contaminating the state's water sources and other resources.

Elsewhere in legal action, the Supreme Judicial Court ordered a new round of fact-finding in a case involving the Gaming Commission and the 2012 deal for the Everett land that now hosts the Encore Boston Harbor casino.

With lawmakers still playing their cards close to the vest on what future tax-relief efforts might look like, an official opposition campaign to a potential new tax launched on Monday. The Coalition to Stop the Tax Hike Amendment kicked off its efforts to defeat the November ballot question that would write a 4 percent surtax on income over $1 million into the state's Constitution.

While opponents warn against the potential of writing lawmakers a "blank check" with the new tax, the money it would raise is intended to go toward transportation and education needs.

A new pot of money for schools might sound pretty good right now in Boston, where talk of a potential state receivership has been bubbling for a while and hit a boiling point with a new report from the Department of Elementary and Secondary Education.

The department's report, a searing 188-page document, says the Boston Public Schools are still falling short of an "acceptable minimum standard" in key areas like transportation and special education.

It calls for bold moves and immediate improvement, but doesn't specifically recommend receivership. Mayor Michelle Wu, one of a slew of local officials against the idea of receivership, and state Education Commissioner Jeff Riley have been talking about next steps.

Based on comments from Baker and Riley, a former Lawrence receiver, the state will be looking for Wu to lay out concrete steps and commit the city to taking them. If the state does ultimately pursue receivership, Wu said Boston will seek "a hearing and due process under the board's laws and regulations to continue to make our case."

News at the state and city levels this week unfurled as the nation coped with the horror of a school shooting in Uvalde, Texas, which left 19 students and two adults dead.

"We must turn that anger into action. We must not lose hope," Senate President Karen Spilka said as the Senate paused its budget debate for a moment of silence honoring the victims of that tragedy and other recent shootings in New York and California.

STORY OF THE WEEK: The visual aids, speeches and earmarks can only mean one thing -- another Senate Budget Week has come and gone.


The Salem News
Friday, May 27, 2022
Senate approves nearly $50B state budget
By Christian M. Wade | Statehouse Reporter


The state Senate approved a nearly $50 billion budget on Thursday after plowing millions of dollars in new spending into the package, but rejected a buffet of proposed tax cuts and a temporary holiday from the state's gas tax.

The spending package, which passed unanimously, calls for tapping the state's record surplus revenues to make major investments in schools, child care, workforce development and housing while boosting state aid to communities.

"This is a truly terrific budget," Senate President Karen Spilka, D-Ashland, said in remarks ahead of its passage. "From the start, this budget has been about getting money, and keeping money, in the pockets of people who keep this commonwealth moving forward."

The plan calls for increasing state aid to cities and towns by more than $63 million to $1.23 billion in the next fiscal year. Chapter 70 state funding for public schools would also rise to more than $6 billion next fiscal year under the plan.

The Senate also calls for pumping more money into the state's reserves or "rainy day" fund, bringing the fund to a record level of $6.74 billion.

A key provision of the plan calls for spending $250 million for pandemic-related state grants to buoy early education and child care providers.

The spending package also contains policy changes, such as making phone calls at state prisons and correctional facilities and creating a $20 million fund to reimburse county sheriffs for the costs.

Another provision seeks to provide legal protections for reproductive and "gender-affirming" health care providers in Massachusetts to shield them from potential lawsuits over providing abortions and other services to out-of-state residents, if the U.S. Supreme Court overturns the Roe v. Wade ruling.

Over three days of debate, senators slogged through more than 1,100 amendments to the spending package seeking additional funding or changes in state policy. Many of the amendments were packaged into large bundles that were approved or rejected on single voice votes. About 500 were approved.

While there are no wholesale tax or fee increases in the spending bill, the Senate's Democratic majority rejected a $700 million buffet of proposed tax cuts that were part of Baker’s preliminary budget package filed in January.

Baker’s proposal called for adjusting state income tax laws and boosting rent deductions to provide relief for low-income residents, expanding tax credits for housing and child care, and a major overhaul of the estate or "death" tax.

Senate Republicans also made another push to suspend the state's gas tax of 24 cents per gallon through Labor Day as part of the budget deliberations, but the proposed amendments were rejected by the Democratic majority, who said they would affect the state’s bond rating and provide minimal relief for motorists.

Senate Minority Leader Bruce Tarr, R-Gloucester, said the state is awash with surplus revenue and can afford to provide relief for consumers who are paying higher prices for food, gas and other goods amid supply chain disruptions and record-high inflation.

"We don't know if that inflationary number will change but we know it's going to have a significant detrimental effect," Tarr said in remarks Wednesday. "We have an obligation to take these reasonable actions — a fraction of one month of excess revenue — to respond and help them weather the storm and gain a little bit of traction, survive and prosper."

Ahead of this week's budget debate, Spilka said she wants to pursue a tax relief package before the end of the session but has not provided additional details.

On Wednesday, Senate Ways & Means Chairman Michael Rodrigues defended the Democratic majority's rejection of the tax cuts and pointed out that the Senate's spending plan includes funding to help taxpayers struggling with higher costs.

"This body has not stood by and done nothing. We have done enormous things to help," Rodrigues said in remarks during the budget debate. "Just the fact that we're passing close to a $50 billion budget with money for services that assist every resident in education, child care, mental health, health care."

Rodrigues argued that Baker's tax cuts are skewed toward the state’s wealthiest and said the Senate intends to hold a "comprehensive tax debate to ensure that those residents that deserve it most will get the largest share of tax breaks."

The Democratic-controlled House approved its version of the budget two weeks ago after adding $130 million more in spending to the plan.

House Republicans also sought to amend the spending package to include parts of Baker’s tax cuts plan and a gas tax holiday, but the proposals were rejected.

During closing remarks in the Senate budget debate, Tarr walked across the chamber and handed Rodrigues a burlap "taxpayer sack" with proposals to cut taxes.

"I'm hoping, in giving this to you, that within the next 40 days you will find a way to fill it with tax relief for the citizens of the commonwealth," Tarr said.

Differences between the House and Senate versions of the budget must be worked out by a yet-to-be appointed conference committee of six lawmakers before heading to Baker's desk for his review.

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites.


State House News Service
Thursday, May 26, 2022
Mariano Says Gig Economy Getting “Free Pass”
Speaker Exploring New Revenues, On Top Of Tax Relief
By Colin A. Young


House Speaker Ronald Mariano said the House is working to assemble a tax relief package by the end of July and that he has a willing dance partner in the Senate, but he also indicated Thursday that relief is not where the tax talk is likely to end.

"We're gonna try and put some things together. There's still two or three things that I'd like to do that I'm having the numbers run through Revenue [Committee]. I want a more equitable dispersal of the benefits and tax benefits," Mariano told reporters Thursday after addressing the Greater Boston Chamber of Commerce.

The speaker, who has said for months that he is open to the idea of tax relief without having advanced Gov. Charlie Baker's proposals or outlined his own, said the idea of changing the threshold at which the estate tax kicks in "was something that jumped out at us right away," but otherwise did not get into the details of what a House relief package might look like.

Senate President Karen Spilka has also said that she wants to get a tax relief bill through her chamber and said she will turn her attention to the issue after the Senate budget debate is over. Mariano said his conversations with Spilka give him "the impression that she does want to do something."

But while tax relief may dominate the tax-related talks between now and the end of formal lawmaking in July, Mariano said in his remarks to business groups Thursday that "it's absolutely critical for the Legislature to continue to look for new, smart ways to generate more revenue for the commonwealth." He spoke specifically about sports betting and the money that could bring in for the state, but he told reporters after his speech that he has his eyes on other new revenue sources.

"Well, yeah. I don't know if I should tell you right now what they are," he joked when asked if he's eying any other sources of state revenue. "There's a whole gig economy issue and how we deal with some of those things, I think that's ripe for some examination. I think we'd be silly to just give them a free pass without looking at it."

Asked by a reporter if he has given any consideration to a tax on services, the speaker said he had not "per se."

"But it's an interesting avenue to look at though and I will take a look at that. I don't know exactly how you would structure that and how we would identify these services, but there may be something there," Mariano said.

Five years ago, when state tax revenues were falling short of expectations and budget writers resorted to one-time revenues to balance the budget, then-Senate President Stanley Rosenberg floated the idea of a sales tax on services to better capture what is happening in a state economy that's largely driven by services. Since then, the idea that's deeply unpopular with the business sector has seldom surfaced on Beacon Hill.

"As you may remember, we had a service tax in Massachusetts and it didn't last long," Rosenberg said in 2017, alluding to a state sales tax on business and professional services that was passed in late 1990 in the waning days of the Dukakis administration but repealed by the incoming Weld administration before it ever took effect. "So it's very controversial, but our economy is even more reliant now than it was then on services and it is certainly worth looking at."

The last attempt in Massachusetts at establishing a sales tax on services was the Legislature's short-lived 2013 law subjecting certain computer services to the sales tax. Lawmakers wound up repealing their so-called tech tax amid an outcry from businesses.

Though the Legislature's involvement with it is complete, a major tax policy proposal is in line to go before voters on November's ballot. The proposed 4 percent surtax on annual household income above $1 million is projected to bring in about $1.3 billion a year that the proposal calls to be spent on transportation and education.


State House News Service
Monday, May 23, 2022
Surtax Opponents Warn Against Beacon Hill “Blank Check”
Opposition Campaign Forms, Accelerating Debate
By Colin A. Young


Opponents of the proposed surtax on household income over $1 million launched their campaign Monday morning to defeat the Constitutional amendment on November's ballot, focusing on the potential impact on small businesses and retirees as well as the possibility that the Legislature treats the estimated $1.3 billion in annual surtax revenue as a "blank check."

The Coalition to Stop the Tax Hike Amendment, a group of small businesses, chambers of commerce, some of the state's most influential trade organizations, retirees and concerned citizens, formally kicked off its anti-surtax efforts and said its members have "united to communicate to voters the damage this massive tax increase will have on our state's economy."

"Proponents of the amendment claim that it will raise taxes only on Massachusetts' highest earners, but in practice, it will harm hardworking families across the state," Dan Cence, a veteran lobbyist and political strategist and spokesperson for the Coalition to Stop the Tax Hike Amendment, said. "Massachusetts already has a budget surplus of billions of dollars. We must work together to strengthen our economy and ensure Massachusetts remains a place where small business owners can thrive."

Massachusetts voters will be asked in November whether the Massachusetts Constitution should be amended to impose a new 4 percent surtax on annual household income in excess of $1 million to raise money for education and transportation. The change is proposed as a Constitutional amendment because the state Constitution currently requires that a tax on income be applied evenly to all residents.

If the surtax is approved, the first $1 million of household income would still be taxed at the current 5 percent rate and all household income above and beyond that first $1 million would be taxed at an effective rate of 9 percent. Estimates put the annual revenue that could be generated by the surtax at about $1.3 billion and supporters pitch the idea as a way to provide a sustainable revenue source for education and transportation without dipping further into the pockets of most residents.

But the Coalition to Stop the Tax Hike Amendment and other opponents have repeatedly highlighted how the so-called millionaire's tax could affect people who might not typically be thought of as millionaires, like small business owners that file as pass-through entities for tax purposes or people who plan to sell their company to support their own retirement.

On its new website www.StopTheMATaxHike.com, the coalition links to fact sheets targeted at two particular industries -- real estate and construction -- with reasons those fields should oppose the surtax ballot question.

"The Tax Hike Amendment is not just a tax on people making a million dollars a year. It will also tax the nest eggs of longtime homeowners and small business owners whose retirement depends on their investments," the coalition wrote on the fact sheets. "That is because, unlike federal taxes, this amendment would treat one-time gains from selling a home or business as regular income, pushing many retirees and small business owners into the new higher tax bracket, and nearly doubling their taxes."

Supporters of the surtax have said that concerns about its effects on small business sales are overblown, pointing to a March analysis from the left-leaning Massachusetts Budget and Policy Center that said taxes would only be due on the capital gain -- the increase in value over time -- rather than the total price.

Rep. Jim O'Day, the House sponsor of the proposed Constitutional amendment, last June rejected opponents' claims that the surtax would unduly harm small businesses in the Bay State by asserting that "businesses earning over a million dollars, in my estimation, are not small businesses."

In its launch Monday, the coalition also called attention to the fact that while the amendment itself would require the surtax revenue to be spent on transportation and education, it would not necessarily lead to actual increases in spending on transportation and education because future Legislatures could stop appropriating money from other revenue sources to those areas.

"As the former head of the MBTA, I know there is zero guarantee that the money raised from this amendment will increase education and transportation spending. Due to a loophole in the amendment, 'subject to appropriation' means legislators can take this money and use it for their own pet projects -- it means giving Beacon Hill a blank check with no accountability," Brian Shortsleeve, a former general manager at the T who has since founded M33 Growth, said.

Lisa Alcock, a former public school teacher, echoed the same sentiment in her comments on the coalition's website. She said the amendment is "deceptive" and that "the politicians who put this on the ballot are giving themselves a blank check to redirect existing funding for education and transportation to their own pet projects, with no accountability."

Worcester City Councilor At-Large Khrystian King addressed that line of criticism earlier this month when the Fair Share for Massachusetts campaign officially launched its pro-surtax effort.

"We know that the devil's in the details in how the money will be used, we acknowledge that," he said.

A Fair Share for Massachusetts spokesman said the language of the amendment is "an ironclad dedication that the funds raised by this amendment must be spent on those two areas" and that the campaign feels confident that the Legislature -- which last summer voted 159-41 to put the question to voters -- intends to increase spending on transportation and education.

The Massachusetts High Technology Council, which was successful in getting the 2018 version of the surtax amendment tossed off the ballot, is leading a legal effort to influence how the surtax question could be described to voters when they get their ballot with a particular emphasis on the potential that education and transportation spending is not increased despite the surtax - decisions on spending are made by the Legislature, which experiences turnover every two years.

The Supreme Judicial Court this month heard arguments related to the complaint that the surtax summary that Attorney General Maura Healey has prepared for voters will mislead them.

The suit seeks to have the SJC order that ballot materials tell voters that "the Legislature could choose to reduce funding on education and transportation from other sources and replace it with the new surtax revenue because the proposed amendment does not require otherwise."

The Coalition to Stop the Tax Hike Amendment is made up of: 126 Self Storage, Associated Industries of Massachusetts, AlerisLife Inc., Ballast Lane Applications LLC, Boston Sword and Tuna, Brandon Landscaping, David Kindred Homes Inc., Diversified Healthcare Trust, EFR Mechanical, IBC Corporation, Industrial Logistics Properties Trust, M33 Growth, MA High Tech Council, MA Seafood Collaborative, National Federation of Independent Businesses, Norfolk & Dedham Group, North Central MA Chamber of Commerce, Office Properties Income Trust, Optikos, Pioneer Institute, PR Restaurants, Retailers Association of Massachusetts, Service Properties Trust, Seven Hills Realty Trust, Sonesta International Hotels Corporation, Springfield Chamber of Commerce, The RMR Group, TravelCenters of America Inc., Trudeau Construction, Western MA Economic Development Council, and Westside Finishing Co.


The Salem News
Tuesday, May 24, 2022
Coalition forms to oppose millionaires' tax
By Christian M. Wade | Statehouse Reporter


A newly formed coalition of business groups launched a campaign to defeat the proposed millionaires’ tax, foreshadowing what could be a costly battle over the proposed constitutional amendment ahead of the November elections.

The Coalition to Stop the Tax Hike Amendment, which includes business groups, chambers of commerce, hoteliers, developers and “concerned citizens,” argues that the proposed 4% surtax on the state’s top earners would be “one of the state’s highest income tax increases in history,” affecting tens of thousands of residents.

“Now, more than ever, is not the right time to raise income taxes,” Dan Cence, the coalition’s spokesman, said in a statement. “Proponents of the amendment claim that it will raise taxes only on Massachusetts’ highest earners, but in practice, it will harm hardworking families across the state.”

The Fair Share Amendment, which was cleared for the ballot by the state Legislature, will ask Massachusetts voters to amend the state constitution to set a new 4% surtax on the portion of an individual’s annual income over $1 million. The money would be earmarked for transportation and education projects.

Estimates suggest the new tax could drum up between $1.3 billion to $2 billion a year to improve schools, expand child care, and fix crumbling roads and bridges.

But opponents argue the surtax would hurt businesses, drive away the wealthy and put a drag on the state’s economy as it recovers from the pandemic.

“There is nothing fair about subjecting small businesses who serve as the backbone of the Massachusetts economy to a constitutionally locked-in income tax increase,” said Chris Carlozzi, state director of the Massachusetts chapter of the National Federation of Independent Business, a member of the coalition.

“Not only does the income tax hike reduce a pass-through small business’ ability to reinvest in their operation and their employees, but it also taxes the owner at a higher rate when they seek to sell their business and retire,” Carlozzi said.

Members of the coalition, which include Associated Industries of Massachusetts, the Massachusetts Seafood Collaborative, Retailers Association of Massachusetts, and the Pioneer Institute, note that the state’s voters have several times rejected proposals to replace the state’s flat personal income tax with a graduated rate.

But supporters argue the state’s top earners can afford to dig deeper into their pockets to help drum up much-needed education and transportation funds.

The Raise Up Massachusetts coalition, a coalition of labor unions, community and faith groups behind the referendum, dismissed the newly formed opposition group and accused them of distorting details of the proposed amendment.

“The super-rich got richer during the pandemic, and a small number of them will say anything to keep from paying their fair share to build a better future for Massachusetts families,” said Steve Crawford, the coalition’s spokesman.

Crawford said claims by the group that the surtax would hurt “pass-through” small businesses — where profits are passed through to the owners’ personal tax filings and business income is taxed at personal tax rates — “distorts” the ability of business owners to write off costs by reinvesting in their companies.

“The Fair Share Amendment is simple: If you earn less than a million dollars in a year you won’t pay a penny more. Only the very rich will pay a little extra,” he added. “And the money raised is constitutionally required to be spent on making our kids’ schools better and fixing our roads, bridges, and transit.”

The referendum faces a challenge from a lawsuit filed by Massachusetts High Technology Council and other opponents who argue that backers of the surtax may try to mislead voters by using an “inaccurate” summary of the referendum.

They say despite claims the money will be used for education and transportation, lawmakers could divert the funds for other purposes and voters should know that before they go to the polls.

The outcome of the legal challenge is pending a ruling by the state Supreme Judicial Court, which heard arguments in the case about three weeks ago.

A similar millionaires’ tax referendum was set to appear on the November 2018 ballot until the SJC ruled it unconstitutional.

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites.


State House News Service
Friday, May 27, 2022
Baker Vetoes Immigrant License Access Bill
Voting, Verification Concerns Outlined In Veto Message
By Michael P. Norton


Gov. Charlie Baker on Friday vetoed a bill making immigrants without legal status eligible to seek state-issued driver's licenses, saying the Registry of Motor Vehicles, an agency that he oversees, doesn't have the ability to verify the identities of potential applicants.

Following years of advocacy for the bill, House and Senate Democrats on Thursday enacted the legislation, which supporters say will make the roads safer by granting access to licenses for many undocumented immigrants who are already living throughout the state.

Republican opposition to the bill was steady throughout its journey through the Legislature, and officeholders and candidates at the GOP convention last weekend in Springfield sporadically and pointedly expressed their opposition to the proposal.

In his veto message, Baker said the legislation "significantly increases the risk that noncitizens will be registered to vote," a possibility that bill supporters have refuted. The governor said the bill "restricts the Registry's ability to share citizenship information with those entities responsible for ensuring that only citizens register for and vote in our elections."

The bill cleared both branches with more than enough support to override Baker's veto.

"Allowing parents to drive their kids to school, take them to doctor's appointments or be in charge of carpooling to take their kids to soccer, all without the concern they may be separated if they are pulled over, will allow children of undocumented immigrants to breathe and have a sigh of relief," bill supporter Sen. Adam Gomez, a Springfield Democrat, said earlier this month.

It will be up to the House to initiate a veto override, with a two-thirds vote required in each branch to make the bill law. Ana Vivas, a spokeswoman for Speaker Ron Mariano, said the House plans to take its override vote on June 8.

The House voted 118-36 Thursday to accept the conference committee report on the bill; the Senate vote was 32-8.

Under the bill (H 4805), expanded access to standard driver's licenses would begin on July 1, 2023. Applicants under the bill would need to provide proof of their identity, date of birth and residency in Massachusetts.


The Boston Globe
Friday, May 27, 2022
Governor Baker vetoes bill to give driver’s licenses to undocumented residents
By Samantha J. Gross


One day after state legislators approved a bill to allow undocumented immigrants to get driver’s licenses in Massachusetts, Governor Charlie Baker vetoed the measure, saying it poses a risk to election security.

In a letter rejecting the legislation late Friday afternoon, Baker said the bill requires the Registry of Motor Vehicles “to issue state credentials to people without the ability to verify their identity” and “increases the risk that noncitizens will be registered to vote.”

He also expressed concern that the identification wouldn’t distinguish an undocumented person from a documented one.

“Consequently, a standard Massachusetts driver’s license will no longer confirm that a person is who they say they are,” Baker wrote.

The House and the Senate voted overwhelmingly to approve the bill Thursday, supporting it 118-36 and 32-8, respectively.

Those margins were large enough to override Baker’s veto. A two-thirds vote is required in each branch to override the governor’s veto and make the bill law.

A spokesperson for Senate President Karen E. Spilka said the chamber will override, but did not provide a date. The House will override the veto during its next formal session on June 8, according to a spokeswoman for House Speaker Ronald J. Mariano.

In a tweet, Spilka called Baker’s veto “misguided” and said her chamber looks forward to overriding it.

“We are a nation of immigrants,” she said. “We all benefit from increased public safety. And everyone deserves to feel safe and get to work, pick up children and be a part of their communities without fear.”

If the bill becomes law, people without legal immigration status could obtain a driver’s license by providing two documents that prove their identity, such as a foreign passport and birth certificate or a passport and a marriage certificate. The new ID requirements would take effect on July 1, 2023, after the next governor is elected.

In tweets Friday, Democrat gubernatorial candidates Attorney General Maura Healey and state Senator Sonia Chang-Díaz said they support the chambers in their presumptive override of Baker’s veto.

“Advocates, legislators, and law enforcement have been working to pass this bill for years, and we won’t give up now. We will get this done for our immigrant community,” Healey said.

Chang-Díaz said Baker’s veto is “nothing more than fear-mongering.”

“Looking forward to overriding this veto,” she said.

Former state lawmaker Geoff Diehl and businessman Chris Doughty, the state’s Republican gubernatorial candidates, have each spoken against the legislation.

Massachusetts would join 16 other states and the District of Columbia, which already allow undocumented people to receive driver’s licenses, according to the National Conference of State Legislatures.

The legislation, which the two-term Republican governor has long opposed, has been backed by the attorney general, the majority of the state’s sheriffs and district attorneys, and the Massachusetts Major City Chiefs of Police.

Baker’s concerns over election security have been rejected by Democratic leaders, including Secretary of State William F. Galvin, the state’s top election official.

“The raising of the voting issue is a red herring,” Galvin said in an interview Friday. “I am very committed to election security, I always have been. I think this has been exaggerated. This is about driving, not about voting.”

Advocates who have been pressing the issue of driver’s licenses for decades expressed their disappointment in Baker’s veto.

Kathy Henriquez Perlera, a 23-year-old consultant who immigrated from El Salvador, volunteers for advocacy group Cosecha Massachusetts. She said the veto was as upsetting as it was empowering.

Henriquez Perlera, who is undocumented, said it’s satisfying to know that her group and others have mobilized enough voters to elect a legislature that overwhelmingly supports their cause.

“We have done that work so well that we don’t need his signature to pass it,” she said. “We knew from day one that Governor Baker wasn’t on our side. We just had to do what we needed to do.”

Lenita Reason of the Brazilian Worker Center and 32BJ SEIU Vice President Roxana Rivera, cochairs of a coalition that worked closely on the legislation, said in a joint statement that “in his veto, the governor simply repeats claims that have been disproven before.”

“We are confident that the majority of legislators from across the state who initially supported the bill will not be swayed by this veto and will swiftly vote to override,” they said.

Elizabeth Sweet, the executive director of the Massachusetts Immigrant and Refugee Advocacy Coalition, said her group expects the legislature to “waste no time in overriding the governor’s veto.”

“The policy would not only make our communities safer, but benefit our economy and bolster trust between law enforcement and immigrant communities,” she said.


The Boston Herald
Wednesday, May 25, 2022
Race for governor must be about gas, crime and no baby formula
By Peter Lucas


A big winner in last weekend’s Republican convention was a Democrat.

That would be Attorney General Maura Healey, the two-term progressive who is running for governor.

While the Republican convention overwhelmingly endorsed Trump conservative Geoff Diehl for governor, he will be challenged in the GOP primary by Wrentham moderate businessman Chris Doughty.

Doughty qualified for the primary by getting almost twice the necessary 15% of the delegate vote to appear on the ballot.

This means that Diehl, a heavy primary favorite, will nevertheless have to expend valuable time, money and energy to deal with Doughty.

These are resources he hoped to use running against Healey, who is expected to easily win the Democrat Party endorsement at the party convention June 4 in Worcester.

Healey is being opposed by state Sen. Sonia Chang-Diaz of Boston, a fellow progressive.

Healey is expected to dominate the convention and in a Democrat primary if one develops. Chang-Diaz would need to win 15% of the convention vote to run in a primary.

So, if Diehl wins the GOP primary over fist time candidate Doughty, as expected, he will face a well-funded Healey, who may not even face a primary challenge.

Healey, who has scored a series of Democrat and progressive endorsements — but has not heard from Joe Biden — has raised close to $5 million in campaign funds.

This compares to the less than $400,000 that Diehl has raised.

Doughty, a successful manufacturer, has put $500,000 of his own fortune — and perhaps more to come — into his campaign, which makes one wonder what his six children and four grandchildren are thinking.

Still, Healey has easily raised more money than the two Republicans combined, and you could throw in Chang-Diaz as well, and the three do not come close to equaling the cash Healey has on hand.

While the relatively unknown Doughty may outspend the better-known Diehl, the GOP primary is not about money. It is about political philosophy.

Diehl represents the Donald Trump conservatives who have wrested control of the Massachusetts Republican Party away from outgoing RINO moderate Gov. Charlie Baker. Hence the endorsement.

Doughty, who voted for Hillary Clinton in 2016, is more politically in tune with Baker, who did not even attend the convention and who has not endorsed anybody for governor.

If the convention vote is any indication, Diehl should beat Doughty in the primary. In 2018 Diehl beat out two other Republicans for the U.S. Senate nomination only to lose to Democrat Elizabeth Warren. So he is better known.

But that is only the beginning. There are only 459,663 registered Republicans in Massachusetts, compared to 1,494,990 registered Democrats. Diehl could win every Republican primary vote and he would still be well behind Healey, both in votes and in money.

However, there are 2,717,293 unenrolled voters, or Independents, who normally do not vote in September primaries. But they do vote in November.

Diehl is a longshot, for sure, even if he wins the primary. But we live in strange, angry and anything-can-happen times.

Diehl needs to nationalize the election. With Trump at his back, needs to make the election about Joe Biden, who Healey supports, even as Biden has brought the country to its knees.

Gas prices? Food costs? Crime? Drugs? Homelessness? Illegal immigration? No baby formula? Empty shelves? Hate? Divisiveness? Afghanistan? Joe Biden has failed on every front.

Democrat election officials are now treating Biden as though he had monkeypox.

Yes, Biden whipped Trump in Massachusetts in 2020 when 2,382, 202 people voted for him. He would not get that vote today. Trump back then got 1,167,202 votes. Today he would get those same votes and more.

Biden sold out his supporters to a bunch or radicals. Now his disenchanted supporters — Democrats and Independents — are deserting him. These are the people Diehl must go after if he has any chance at all. They are out there; you just have to get them.

Peter Lucas is a veteran Massachusetts political reporter and columnist.


The Boston Herald
Saturday, May 28, 2022
Trump perfect political storm brewing in Massachusetts
By Joe Battenfeld


The perfect Donald Trump storm is brewing in Massachusetts — an unabashed conservative taking on the Democratic power structure, a liberal candidate and the left-wing media.

So it’s no surprise Trump is considering making an appearance for gubernatorial candidate Geoff Diehl’s campaign.

A Trump rally would take the Bay State gubernatorial race national — which is just what Diehl wants — and shine a spotlight on the former state rep and failed U.S. Senate candidate.

It would also bring in cash, notoriety and of course plenty of criticism in the establishment media and in the Democratic party.

Democratic front-runner Attorney General Maura Healey is the perfect Trump foil — she has sued the former president dozens of times and at times seemed obsessed by him.

Healey has tried to hang the Trump label on Diehl and he seems perfectly willing to embrace it.

Trump and Diehl would also be running against the state Democratic Party establishment, including the super-liberal Legislature, which has resisted passing tax cuts despite a huge state surplus and just passed a bill allowing non-citizen immigrants to get a drivers’ license.

No doubt the former president would also enjoy coming into the home state of his Republican nemesis, Gov. Charlie Baker. Trump has made it a point to slam Baker whenever he can.

This scenario of course depends on Diehl actually winning the primary against moderate underdog Chris Doughty. Diehl will be the heavy favorite — he just won a vote of Republican party delegates by a 70-30 point margin.

The question for Diehl is can he stitch together enough of a coalition of staunch conservatives, veterans, law enforcement, anti-vaxers and others to win the primary and make it a contest against Healey or the other Democrat, Sonia Chang-Diaz?

Trump may be able to help fire up conservatives — more than a million of them voted for him in 2020 in Massachusetts — but he’ll also energize Democrats, too.

Whether the former president makes an actual visit to the Bay State is in question — he’s promised to do “something” for Diehl but he may not want to invest too much time in a race he’s likely to lose.

Trump would no doubt relish coming into the home state of his frequent verbal sparring partner, U.S. Sen. Elizabeth Warren.


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