A prosperous economy has done wonders for state finances. The state's bond rating has been
upgraded and its rainy day funds have been filled, expanded and filled again. Billions of
dollars in surpluses have been put to good use: increased spending on education and health
care, worthwhile capital improvements. Taxes have been cut 40 times, strengthening the
state's businesses and putting money into the pockets of its residents.
Those cuts are good, but not quite enough. A U.S. Census study released last month found
Massachusetts state taxes the fifth highest in the country. Like other factors that
contribute to the high cost of doing business in this state, our income tax rate -- the
highest in the country -- puts us at a competitive disadvantage that could hurt the economy
down the road.
A "Yes" vote on Question 4 would reduce the
income tax rate, over three years, from 5.8 percent to 5 percent,
costing the state $1 billion in revenues when fully implemented.
Reputable analysts confirm that the state can afford the lost revenue
without cutting spending. Opponents can cite a long list of worthy
projects the state could spend that money on: smaller classes, better
health care, repairing crumbling schools or paying down the state debt.
But defeating Question 4 won't guarantee that any of the surplus will be
spent o those things. It will just put more of the surplus cash into the
hands of a Legislature that cannot be counted on to spend it wisely.
We recommend a YES vote on Question 4.