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July 19, 2006
Beacon Hill Never Sleep on Taxes
While we were all sleeping, wondering how mcu we're going to have to pay for The Big Digaster, the Legislature continues to come up with schemes that will force more taxpayers to leave Massachusetts.
The latest is House bill H. 2341 that will make it easier for communities to pass Proposition 2 1/2 overrides and increase property taxes. Under the proposal, senior citizens living on fixed incomes would be exempt from paying higher taxes attributed to successful overrides. In essence, the bill's sponsors, tax-spending Democrats, aim to keep senior citizens at home on election day, since under the provision of the would-be law they won't be affected by the outcome of the vote. This is an anti-democratic measure. As we all know, senior citizens have the highest turnout record in most communities when it comes to defeating overrides. If this measures passes, and it has already received the endorsement of the House Ways and Means Committee, it would basically banish seniors to the sidelines, and give special-interest groups a better chance to raise property taxes for public schools.
This bill is detrimental to all communities, since it would create divisions among all segments of the population. Young families would face the burden of ponying up for higher taxes, while seniors get a break. There are already enough circuit breakers for seniors in most communities that help them to reduce their taxes. The other problem I see is that over time, this bill would lead to destabilizing communities. Think about it: demographics are not in our favor. We are an aging state. Eventually, there will be a greater number of baby boomers and seniors. We'll need them paying a fair share of taxes just to get by. There are not enough good paying jobs being created to give younger people the incentive to stay here and pay more. In reality, giving seniors a break on overrides will skew the local tax picture and allow affluent special interest groups to dictate the tax rate.
The Sun successfully editorialized against a similar measure when it appeared on the horizon two years ago. I believe we will do the same now. Legislators who believe the state's surplus revenues will continue indefinitely are seeing a mirage. Most of the surplus was the result of capital gains taxes, just like it was prior to the 2001-02 recession. We can't build budgets on unpredictable revenue sources. I thought the Legislature had learned from its past mistakes, but I was wrong.
Don't you feel this measure will divide communities rather than help them?
Posted by JimC at July 19, 2006 10:08 AM
Comments
I got the notice about this from Citizens for Limited Taxation (Barbara Anderson's group) yesterday and was fuming over it.
What a great decision. This will clearly shift the tax burden to the middle class.. who are already starting to do whatever they can to get out of this state.
In the past, most of these types of proposals were tax "deferrals," where the towns would get the tax receipts later. Now its an exemption.. which means any override (and even the annual 2-1/2 percent increase) would fall on a smaller and smaller group of people.
Tell me, when the middle class finishes moving out, how will the towns provide any services at all with no revenues?
Posted by: Shawn at July 19, 2006 12:18 PM
This is clearly a bad idea and unfair. Why should young people be forced to bear a higher tax burden, especially since younger working families already pay more income taxes?
Some seniors are really annoying. Some of them think that just because they are old they shouldn't have to pay any taxes. Well guess what, back when you old geezers were young, seniors paid their fair share along with you. Why should you suddenly get a break now that you are old? Talk about eating your young!
I would argue that this is unconstitutional under the State constitution's Equal Protection clause. You are treating one group of people (old people) differently then another group (young people).
I agree that this is probably a scam to make overrides easier versus a true break to seniors.
Posted by: Dr. No at July 19, 2006 1:40 PM
Drr. No, do you think being unconstitutional will stop the Legislature from enacting a law that will help to raise taxes? They'll find a way around it, one way or the other. It is a bad idea. Plus, as you suggest, it is insulting to seniors who have a shared responsibility in the community to pay their fair share of taxes and join in public debate. The very fact that a politician would consider this proposal to reduce the seniors' influence in local override questions is anti-senior and smacks at a deliberate attempt to hijack democracy..
Posted by: jim campanini at July 19, 2006 3:08 PM
This bill is a predictable reaction to the decade-long state policy of shifting more of the tax burden to homeowners through property taxes and away from the broadbased state income tax. Everyone wants to cut their taxes, but no one is willing to cut the services they receive (and everyone - including newspaper editors - receives government services of some type). So the cities and towns have to struggle to pick up the cost with only the regressive property tax as a funding mechanism. Because this bill just makes it easier to continue dumping that burden onto local government, it should be defeated, but then so should the roll back of the state income tax.
Posted by: Dick Howe at July 19, 2006 9:59 PM
Dick, I agree with everything you say except your comment about state income taxes. Also, this newspaper editor wants basic services, just like everyone else, but he doesn't need government to provide extras that are the personal responsibility of every American. Government expansion has eroded our sense of community, commitment and cooperation. We now rely on government for nearly everything. Taxes are being increased to support things that our parents and grandparents never had to support, because they understood that it was better to take care of thyself than let government intrude on our lives. Liberals like you would raise taxes to unprecedented levels to continue to fatten government. I should be allowed to pay my fair share to taxes but keep more of what I earn. But I, like many Massachusetts citizens, find that the more I work to succeed,, the more the government wants to take back. If government spent money wisely, it wouldn't have to raid my right to earn a living by taking more and more of my income. Plus, it would roll back the income tax to 5 percent, a reasonable level by any standard. The problem is that government is getting too expensive and middle class Americans can't keep up with supporting it..
Posted by: jim campanini at July 20, 2006 10:04 AM
How can someone from the Sun talk about wasteful government spending after getting into an uproar and writing an editorial because $100,000 for the Merrimcack Repertory Theater was vetoed by the governer. The point was that it is a small amount of money but all the small amounts statewide total 700 million dollars which is a complete waste. All election year pork and that includes every dime that comes into Lowell too. If spending like this is a waste in other towns, its a waste here too.
Posted by: Jack C at July 20, 2006 2:13 PM
Dick..
How much is enough?
Why is 5.3 the magic number? Why not 6% or 8% or 15?
The people of the state rallied together and made a decision. We wanted the rate returned to the traditional rate Massachusetts has been known for. Cap Gains are at 5%, Sales tax is at 5%, income tax WAS at 5%.
Instead, we have a system where the state constantly makes promises and predictions that nobody believes. Businesses and individuals cannot plan for their futures and cannot trust the environment.. so they leave the state (or don't come here in the first place).
Anyone with any money as they near retirement takes off for states with better tax consequences.
Sure, we all love services provided by the distant government.. but how many of them were done as well (if not better) by charities and independent/private foundations?
Our state universities treat education as a sidejob, the masspike was completed 15 years ago, yet the tolls continue, county government in new england is simply redundant, and lets not get into the Big Dig fiasco.
Give the state the money to do something, and it will always cost 3 times as much, and will somehow include jobs for every family member and friend of a pol.
On the other hand, I do believe that by not bringing this tax rate back down, the pols have set themselves up now for nearly 20 years as people we will never trust should they ever again ask us for a "temporary tax".
Posted by: Shawn at July 20, 2006 2:30 PM
Jack, just because I am editor of the newspaper, doesn't mean that my opinions are shared by all editorial board members. I get one vote for my one opinion. so when I am outvoted, I must join the consensus. Personally, I think you make a good point. Lowell's pork, right or wrong, is still pork. In defense of the reps, however, they have to make a pitch for what they can get while the getting is good. Other communities get their reps to do the same. In this case, the $100,000 received by the Merrimack Repertory Theater fell under a strange economic stimulus grant for cultural institutions. I guess when you're a legislator you can make up any category you want to spend money. If this weren't a surplus year, I don't think this type of largess would have happened. Then again ....
Posted by: jim campanini at July 20, 2006 2:49 PM
Jim,
I know the reps have to try and grab as much as they can because everyone else does but that is the problem in a nutshell. It's about other people's money and their addiction to spending it. This is a great argument for more Republicans in the legislature for a little balance. Not that I'm a psychic but I could write the stories today for what will happen the next time there is a downturn and there isn't as much money available. There will be talk from everyone who benefitted from all this pork talking about "draconian" cuts and not caring about children, and blah, blah blah
Posted by: Jack C at July 21, 2006 7:45 AM
In Massachusetts all our politicians care about are what they can take from us for themselves and their friend and the illegal immigrants which are law breakers.
Our politicians want to reward illegal immigrants with free care, free education, free anything, break our law and let us give you the candy store. And don’t forget tax,tax the American citizen to death. We vote to reduce our taxes; the politicians (we vote in office) thumb their nose at us and then waste the tax payers’ money.
Our great politicians will not help our soldiers who defend us with their lives and more. No tuition helps for a Solider- a true AMERICAN, WHY????
Maybe we all should vote against anyone currently holding office, democrat or republican. That would send a big message to all the fat head politicians.
In fact, for now on in every election vote against the incumbent. What a message that would send. Let’s control them for once. What we have in office now (democrats or republicans) are destroying this country. Tax, tax us to death, all they care about is themselves and votes. And WE keep voting them back in---- how stupid are we?????????
Vote against anyone currently holding office, democrat or republican, send a message!!! Stand up and be countered!
Posted by: Donna L at August 18, 2006 3:43 PM
Donna, I detect rage in your words. Wow! The problem is that none of the legislators up for re-election have any opposition. Or few of them do. They don't want people to vote. The fewer who vote, or care, actually caters to the status quo. Lawmakers just want their friends and family to vote, because this way they win. I understand what you are saying, but we need people to step up and run for office. How about YOU?
Posted by: jim campanini at August 18, 2006 4:39 PM


