, Salem, MA


July 11, 2013

Our view: Take a second look at state tax package

Barely noticed in the state’s $34 billion spending plan is an item that should make us all sit up and pay attention — a $500 million tax increase that, among other targets, will hit every driver and computer data-based business in the state.

Add it up, and that’s a lot of people who will be getting a significant tax hike.

Much of the money is earmarked for infrastructure improvements to the state’s highway system, but there is an argument over whether it is enough. The governor asked for a far larger tax hike — $1.9 billion — but the Legislature balked, coming up with the $500 million package instead, and a showdown is expected on Friday. All of our local Democratic lawmakers voted to support the Legislature’s smaller, but still significant, tax hike, while the handful of Republicans left in the Statehouse voted against it.

Taxes in Massachusetts are already high, and the burden is about to get heavier. And while we agree that some new revenue will be needed, particularly in light of the MBTA’s financial difficulties, this tax package has some troubling elements.

The most odious of the proposed tax increases is a 3 cent per gallon hike in the gas tax — which doesn’t seem so bad until you consider the little proviso slipped into it. The tax hike is permanently linked to the rise in inflation, a practice that is rarely used in tax law. That means that in the future, lawmakers won’t have to vote to raise the gas tax — it will automatically increase, no fingerprints attached. That’s politically convenient for the Legislature, but irresponsible to taxpayers and cowardly as well. If lawmakers want to raise taxes, they need to make the case for it every time.

Lawmakers are also looking to gain about $160 million from a tax on certain computer services, billed by supporters as a “business to business tax” that will have no direct impact on consumers. Yet its full implications don’t seem to be widely understood.

Text Only | Photo Reprints

AP Video
US Airlines Cancel Israel Flights Obama Signs Workforce Training Law Crash Victims' Remains Reach Ukraine-held City Diplomatic Push Intensifies to End War in Gaza Obama Offers Condolences at Dutch Embassy Cat Fans Lap Up Feline Film Festival Raw: Lawmakers Scuffle in Ukraine's Parliament The Rock Finds His Inner 'Hercules' Michigan Plant's Goal: Flower and Die Raw: MH17 Passenger Remains in Kharkiv, Ukraine Raw: Israel Hits Gaza Targets, Destroys Mosques ShowBiz Minute: Hoffman, Oberst, Box Office WWII Vet Gets Medals, 70 Years Late Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran
Comments Tracker
Roll Call
Helium debate