Citizens for Limited Taxation & Government
"The Commonwealth Activist Network"
18 Tremont Street #608 * Boston, MA 02108
Phone:(617) 248-0022 * E-Mail: cltg@cltg.org
Visit our web-page at: http://cltg.org
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***CLT&G Update ***
Thursday, January 29, 1998

NEWS RELEASE
January 28, 1998
Re: Taxes

Contact: Barbara Anderson (617) 248-0022

Citizens for Limited Taxation & Government (CLT&G) enthusiastically supports the tax cuts in Governor Cellucci’s FY’99 budget.

The reduction in the so-called "unearned income tax" rate represents a small amount of a large surplus and should be done immediately. It is good not only for senior citizens and those approaching retirement, but for younger people who should be encouraged to save and invest.

We appreciate the Governor’s goal of a 5 percent rate for both investment and wage & salary income. Treating them differently has always been unfair and the investment rate cut is long overdue.
The wage & salary rate cut reflects the Cellucci Administration’s ongoing intent to keep the Legislature’s promise that the 1989 income tax rate increase would be temporary. Shame on the Legislature for not having repealed the increase last year, and on those fiscal commentators who encourage the state to break its word.

Governor Cellucci’s previous bill began the phase-down of the 5.95 percent rate in this tax year, 1998. We note that because of the legislature’s lack of honor thus far, the FY’99 budget’s phase-out of the temporary .95 percent is now exactly the same as that of the "Promise to Keep: 5%" initiative petition, which begins in Tax Year 1999. The Promise petition is on its way to Superior Court this week; Promise attorney Steven Epstein plans to file a civil action for declaratory judgment and injunctive relief tomorrow morning

We fully expect that if the Governor’s income tax cuts are not passed by the Legislature, the people will pass them in November.

Since the income tax cuts are phased in, there is enough money available for the other budget tax cut, an exemption for elder home care—especially since keeping elders at home will save money in other sections of the state budget. And we would note, as has Treasurer Malone, that there should still be an increase in the personal exemption to cover surplus dollars in the stabilization fun. This is the "progressive" tax cut that some legislative leaders seem to prefer, even though they took it away last year.

Finally, to those who insist that the Massachusetts public likes higher taxes, we would call attention to the defeat of the Cape Cod Land Bank yesterday—a victory for homeowners there and a precedent to protect home ownership elsewhere in the commonwealth.

This is a good week for the taxpayer!

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You can e-mail CLT&G at --> cltg@cltg.org
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