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The Emperor's New Suit
By Senator Richard T. Moore October 14, 2008...On November 4th, we'll be voting on Question One to repeal the Massachusetts income tax which provides about a third of the state's income, and is needed to match federal funding that increases the state's revenues. Those who support Question One present enticing arguments promising everyone a substantial pay raise by eliminating the tax. In reality, the attractiveness of eliminating the income tax is more like the fable of the Emperor's new suit. Everyone praised the beauty and fit of the invisible clothes because they wanted to please the Emperor, and appear to be just as wise. Of course, there were no clothes at all, and the Emperor looked quite foolish! The promise of a big tax cut when we're all suffering from higher fuel and food costs, and when some of our neighbors are out of work or at risk of losing their homes, seems too good to be true. Most of us have learned that when something seems too good to be true, it usually isn't true. The Massachusetts Taxpayers Foundation, which is by no means a liberal tax and spend group, has a strong record of being right on most economic questions. They've analyzed the idea of eliminating the income tax, and they're not buying the promise of the emperor's new suit. According to the Taxpayer's Foundation, the loss of the state income tax would result in budget cuts of as much as seventy percent - more than two-thirds - for agencies such as the state police, courts, prisons, mental health services, environmental programs, etc. While the state would have to fund many of the school programs because of constitutional or legal mandates, there would be significant cuts in education and health care as well. Those who support Question One claim that the Taxpayer's Foundation is using "fuzzy math" and that only cuts of 27 percent would be required. That's not true since some accounts, such as repayment of state bonds cannot be cut and must legally be repaid. If Massachusetts were to default on these bonds, interest rates for the state and its local governments would be prohibitive. The state is also responsible for the custody of inmates in prison and patients in mental facilities. We can't simply open the doors and send them out into the communities! Another major false promise is that we'll give ourselves a $3,700 pay raise by eliminating the state income tax. That's also not true; it's only an average savings across all residents. The wealthy will make out just fine, as usual. Since, according to the Taxpayer's Foundation, the 14% of residents earning more than $100,000 would get a $16, 295 tax break. However, the majority (65% of us) earning less than $50,000 will get more like $800. That's hardly enough to compensate for the dramatic loss of public services and the pressure to increase other taxes to compensate for the lost revenue! The Taxpayers Foundation report also shows that states without income taxes, such as Florida, Tennessee, and Washington, rank near the top of the nation in sales tax burden. Massachusetts ranks near the bottom at 45th. Sky-high sales taxes on meals and services, such as software and entertainment, become a substitute for the income tax, and the harm is magnified for those with lower incomes. Washington state, with a population similar to that of Massachusetts, collects double what residents of this state pay in sales taxes. New Hampshire, with no income tax makes up for it in high property taxes as much as five times the cost as in Massachusetts to fund both state and local needs. Don't be fooled by the "something for nothing" claims of those who support Question One. Justice Oliver Wendell Holmes once wrote that "taxes are what we pay for a civilized society." There really is no free lunch in paying for public services. If you want to see the estimated impact of Question One on your town, click on www.votenoquestion1.com and put the arrow over your town. Of course, it's an estimate, but it's a lot closer to reality than the fool's paradise promised by the supporters of the ballot question. For your own, your family's and your community's sake, vote NO on question one! |
