A PROMISE TO KEEP: 5%
A Ballot Committee of Citizens for Limited Taxation

 

The Boston Herald
Thursday, September 28, 2000
Business

Campaign opposes tax cuts on ballot
by Jennifer Heldt Powell


Health care providers and advocates plan to launch a campaign today aimed at defeating two tax cut proposals that will be on the November ballot.

Leaders of the newly formed Coalition to Protect Quality Health Care say the proposals, including an income tax cut supported by Gov. Paul Cellucci, will force cuts in state spending on health care, leading to closures of hospitals, clinics and nursing homes.

Coalition organizers, including the Massachusetts Hospital Association, plan to kick off the campaign at a news conference at the State House.

The group's efforts complement the work of the Campaign for Massachusetts' Future, which also opposes the ballot measures.

One proposal, Question 4, would reduce the personal income tax to 5 percent. The other, Question 6, would give a rebate on toll and auto excise taxes. In total, they would eliminate an estimated $1.8 billion in state revenue annually.

"Questions 4 and 6 represent $2 billion. The question is how you want to use that $2 billion," said Jack McCarthy, manager of the Campaign for Massachusetts Future. "Cellucci wants to use it all as a tax cut. That tax cut is heavily tilted toward the wealthy."

His group's organizers want the money used for education, health care and a targeted tax cut for the middle class, McCarthy said.

The governor is calling for a tax cut to encourage businesses to stay in the state, said spokesman John Birtwell.

"What's really going on is, (tax cut opponents) think they can spend taxpayers' money better than taxpayers can," he said. "But we can't continue to be competitive with other states and have the highest income tax."

The tax cut has also gained the support of the Massachusetts Business Roundtable. But the business group opposes the rebate on tolls and auto excise taxes, which would be worth $600 million to $700 million.

"That's road repair and construction money we know we need, given the Big Dig and other projects," said Alan MacDonald, executive director of the Massachusetts Roundtable.

The Massachusetts Taxpayers Foundation hasn't taken a stand on the income tax cut, but opposes the toll and auto tax rebate.


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