A Ballot Committee of Citizens for Limited Taxation


State House News Service
Monday, October 2, 2000

Tax/Toll Cut Analyses

While stopping short of taking a position, the Massachusetts Taxpayers Foundation on Monday said the state could balance its budget after cutting the income tax to 5 percent as long as tax receipts continue to grow and if state lawmakers return to the spending discipline they exhibited in the mid-1990s.

Tax cut supporters say the announcement is a victory for their initiative petition campaign.

While the risks of Question 4 are "considerably less" than at the start of the year, MTF says passage of Questions 4 and 6, which proposes tax deductions for auto excise and toll payments, would force big cuts in education and social services programs.

In a new report, MTF analyzes the impact of the questions under 18 different spending and revenue growth scenarios.

Toll credit (Question 6) proponent Harold Hubschman says the MTF analysis is "typical gloom and doom," adding, "These are people who go to bed every night praying for a recession, so their analysis can finally be proven true."

Tax Equity Alliance of Massachusetts, which is leading the opposition to the tax cuts, says MTF report "misses the point." TEAM Director Jim St. George said, "Of course, you could finance the tax cut. We've all known that. It's just that you have to give up things that most voters think are more important," like education and health care.

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