|
For
months, the Legislature understood the likelihood that the Commonwealth
would reach a point where we would need to make adjustments to our
fiscal year 2009 budget.
The
Governor had requested from the Legislature, along with all
constitutional officers and the judiciary, to cut seven percent from
our operating budgets. But, the Speaker of the House of Representatives
and I decided to reduce the Legislature's FY09 available spending by 10
percent. The hope is that although there will be more budget
cuts, these voluntary reductions will stem the tide of drastic,
widespread cuts.
Although
Massachusetts is better off than most states, we are facing a decline
in revenues that will result in tight budgets for the near future.
Complicating this situation is the issue of eliminating the
income tax. Even in the best economic times, this would have a
devastating effect on our economy.
Revenues
from our income tax represent $12 billion - that's 60 percent of our
total tax revenues and 40 percent of the entire state budget. Gutting
our state budget by 40 percent would have devastating consequences
across the board, and no city or town would be spared.
Eliminating
the income tax would lead to debilitating cuts in local aid, including
education and public safety. That means laying off teachers, police and
firefighters, closing schools, and shutting down road projects.
There
would also be tremendous pressure to increase property taxes to help
close the gap. The situation in Florida is a perfect example of this
problem.
Time
Magazine has reported that more and more Floridians are faced with
unsustainable property taxes, with some homeowners having seen 100
percent increases over the last several years. And, according to a
Zogby poll conducted last year, unreasonable property taxes are the
major reason why 37 percent of all Floridians are considering moving
out of state.
Those
in favor of repealing the income tax say that every worker in the state
would get back $3,600. But, that's not true. The "Campaign for Our
Communities" estimates that "a person making $1 million a
year in taxable income would save $53,000 ... while a teacher's aide
earning minimum wage would save next to nothing."
That's
because the income tax, unlike property taxes, protect low-and
middle-income residents from paying an uneven share of their earnings.
If you take it away, not everyone benefits.
Either
way by eliminating the income tax and destroying services, or by
raising property and sales taxes low- and middle-income residents will
be hurt the most.
The
fact is the income tax is not wasted money. It goes a long way toward
maintaining and improving necessary services that we all depend on. We
can't have good schools, paved roads, effective public safety, strong
businesses and the best health care available if we are not willing to
invest in ourselves and our quality of life.
Municipalities are already struggling to maintain their
local budgets, and the next few years are going to be particularly bad.
If we cut 40 percent of our budget, everyone loses.
|