Member of the reality-based community of progressive (not anonymous) Massachusetts blogs
EDIT: No idea how this post got set to unpublished status, but it was not deliberate.
The legislature this term is severely disappointing.
The bitching and moaning I have heard from some legislators on the news, as well as from some commenters on blogs, that Patrick is putting the hammer down and this is no way to work with the legislature, is not only babyish, but also unhelpful, and wrong. Someone does need to put the hammer down on these people. It’s not like Patrick has not worked well with the legislature in the past, or didn’t try this term to appease the hacks.
Boo hoo, someone is asking you to act like adults. Get over it. I would like to say I’m disappointed in DeLeo, but that would mean that I expected better of him. I am, however, unhappy to be right.
Last legislative term, under DiMasi, saw a record number of bills passed - good bills, on the environment and economic development, and some of the reforms, though not as many as we all would have liked.
This year, Patrick, who, whatever you think about him, is a serious guy who wants to solve problems, put forth some (very very popular) reform proposals, not only of things which appear to be rife with abuse or that makes the newspapers like bad pension stories, but also of the way we fund things like our transportation. Like Patrick’s bill to increase the gas tax $.19, a tax by the way which is not indexed to inflation (meaning we have had almost 20 years of a tax cut on our gas tax, putting our infrastructure into a long, slowly cooked crisis, and which if it had been indexed to inflation, would actually be $.30+ higher than it is now, not $.19).
But under DeLeo, these common sense reforms like pension reform are stalled, and the legislature ignores all the other, better proposals for revenues and reaches right for the sales tax.
Now, a sales tax increase of 1.25% is not the end of the world. Remember, also, that there is no sales tax on groceries, or on clothing for individual items costing less than $175 (if you can afford a $175 skirt, you ain’t broke). So on a $100 purchase, you’d save only $1.25 more than now, if you headed to NH. Think about if that’s really worth it. (You probably use that much gas or more, even at under $2/gallon.)
However, sales taxes are regressive, despite those reasonable exemptions. And while the actual dollar amount increase per purchase isn’t really that much, the perception to consumers is detrimental at this time in our economy when we want to encourage those who can spend, to spend. While the gas tax may have been also somewhat regressive, at least it discourages driving, a behavior we actually want and need to reduce. A sales tax only discourages spending, the last thing we need right now, whether or not it really marks up the cost of something dramatically or not.
Call your legislators. I’m not kidding. Tell them to stop being childish, and stop supporting this Speaker and his strongarming against reforms, who has shown very little imagination when it comes to deciding what policies he puts forward. I’m disgusted, and you should be too. Phone information on Lowell’s Reps and Senator can be found here (Edit: Per comments, Lowell’s Reps voted against the sales tax, for whatever reason probably not related to the Gov’s reason for threatening veto - but calling Senator Panagiotakos is very key). If you aren’t in Lowell, you can find your Reps and Senators here.
The House passed the sales tax increase by a tiny veto-proof margin, two votes. It may well be that some of the more progressive members of the House voted for the increase under duress. I think it’d be easy to find a couple willing to support the Governor. And don’t forget, the Senate has not yet voted on this, and Senate President Therese Murray has been on the record stating that she is not interested in revenues before reform.
Show the people of Massasachusetts that you want to spend the people’s money wisely, and I know that they understand that to keep government services at some reasonable level in these tough times, revenues must be found - maybe even from the sales tax. After all, Patrick campaigned on the idea of “deciding what we want government to do, then decide how we want to pay for it” in 2006 and the people overwhelmingly elected him. I applaud Patrick for making a stand for reform, and hope that the legislature can be talked down off this ledge.
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April 28th, 2009 at 9:57 am
Isn’t this the wrong forum as a Lowell blog to be telling people to call their representatives since the entire Greater Lowell delegation stood up to the Speaker last night.
April 28th, 2009 at 10:03 am
OK, granted. Call them to tell them you support them on this. (I didn’t check the roll call for all the delegates from MA). Then again, they’d probably vote against ANY revenue increase…but since these three are already in the total doghouse with DeLeo anyway (having backed his rival totally and unequivocally) I suppose there wasn’t much in it for them supporting it, from a political point of view…not to mention, the Lowell delegation is notoriously conservative anyway.
Also, it’s key key key to call Senator Panagiotakos.
April 29th, 2009 at 2:33 pm
I tend to agree that the Greater Lowell delegation and district is more conservative than much of the rest of the Commonwealth and that is a big part of it. I think the fact that this region is more likely to be hurt by a sales tax by losing business to NH–not because 1.25% is a huge deal, but because people don’t act rationally when it comes to taxes. If its easy enough, which it is around here, people will go just to spite Massachusetts.
But I think every rational person agrees with the need for more revenues. But the sales tax is the absolute wrong tax. The governor’s tax proposals aren’t perfect either. The correct answer is the only one “off the table” the income tax. People who are underemployed are still going to buy things and use gasoline.
I think the Lowell delegation is more in tune with the public perception than the House Speaker right now. People don’t appreciate the fact that there will be at the very least $1.2 billion cut from this year’s budget, and that there is no way to “cut, cut, cut” out of this economic situation. But at the same time, there is no way to just raise revenue, and the only way to sell the public on the idea of higher taxes is to show them that it is necessary and the cuts are being made.
Reform before revenue is a meaningless slogan. But its also necessary. Gotta give the Lowell delegation credit for recognizing that one. And that this is the wrong tax not just for Lowell but for the Commonwealth.
April 29th, 2009 at 3:49 pm
“So on a $100 purchase, you’d save only $1.25 more than now, if you headed to NH”
Actually Lynne I think you would save $6.25 per hundred, because you would also save the original 5% too. The new fridge we bought was $1200 so it would cost me $75 in MA Tax. Sorry, but that is enough to atleast stock the thing for the first week. I do not consider $75 nothing.
April 29th, 2009 at 6:37 pm
Lowell Resident…The other problem with taking the income tax “off the table” is that the other taxes being proposed will be paid pretty much exclusively by Massachusetts residents.
By looking at the income tax then you get people from NH who work in Mass to pay as well. As it is for the most part they earn their living here but drive home to NH for purchases to avoid paying sales/gasoline etc tax in Massachusetts.
April 30th, 2009 at 9:25 am
Eleanor,
Although I agree that the sales tag is regressive and I would prefer to see an income tax increase (actually I’d like to see deep cuts because this is a recession and we shouldn’t be raising taxes), the truth of the matter is those NH people don’t get much out of paying MA income tax. 50% of our budget goes into the Health and Human Services bucket, which they get nothing from at all. If our tax dollars went to infrastructure and economic development, I’d agree… but most don’t. They go to the elderly and the poor. NH deals with their own of those. No idea how actually, I think they banned all poor people except the hillbillies and burn the elderly for fuel assistance:-)
April 30th, 2009 at 12:10 pm
LOL Good one Corey! LOL
Actually I agree that before we talk tax increase of any kind we need to talk reform, and tax hikes should not be considered in an economy like this.
As for NH workers in Mass not getting the benefit of an income tax increase that is true, but it is also there choice to work in Mass where there is an income tax. They could work closer to home with no income tax. I’ll throw a little right wing conservative BS in here as an example. The NH workers are taking jobs from Mass residents! How’s that! Seriously, they work here and earn their income here and should share the burden a sales tax or gasoline tax hike etc will focus that burden not on all workers in the state, just the ones that live here.
BTW, they are able to deduct their Massachusetts income tax on their Federal returns just like us.
April 30th, 2009 at 1:48 pm
Well, I’d just be careful what you wish for. I’d love to see them pay more for the roads they clog, but you can’t force them to buy gas in MA. If gas tax goes up, they’ll be even more likely to fill up on their way to work or when they get home. Put too much tax burden on businesses and residents in the Merrimack Valley, and you’ll see more of those good jobs go to NH.
Why don’t we ever talk about a graduated income tax? It’s considered so fair and important at the Federal level, but at the state level, aside from the low-income deductions (rental deductions, etc), everyone pays the same rate. It seems to me that a redistribution of the tax burden in this state might allow those on limited incomes, those that are struggling the most, to keep a little more money in their pockets and stimulate the economy without cutting the services they depend on.
April 30th, 2009 at 3:48 pm
Its true that NH residents don’t get the most out of paying their MA income tax, but there’s a reason that so many people in NH work in MA and its because thats where the jobs are. Considering the business that NH takes from MA residents because of the lack of a sales tax, I think they still end up with the better end of the bargain.
There will be massive cuts though either way. I’m also pretty sure the DeLeo/C.Murphy budget is very optimistic when it comes to revenues, so there will be even more cuts on the way. There’s no new revenue being generated by these taxes, they’re just designed to make up (somewhat) for the revenues lost by the recession.
April 30th, 2009 at 6:16 pm
Corey, the good paying jobs are in Mass. The same job in NH pays less, much less. So they commute. Many are former Mass residents who moved north but stayed with their higher paying Mass jobs. Yes, they should pay as well.
All that said we are on the same page. Reforms etc need to happen, including cuts, before taxes are even on the table. And because we are a border community I anticipate that many of us will head north to NH to start buying food, fuel and other things. I read an Op-Ed piece by Robert McKittrick last night and he hit it on the head. This increase will kill small retailers in the communities that border NH because of perception.
Example…
I recall Rita Mercier speaking at a CC meeting a quite a while ago against a local option meals tax of 1 percent saying it would drive people to NH! Now those of us who know realize that the NH meals tax is 8% and a 1 percent local increase in the 5% meals tax is still cheaper than NH, but the perception is that we would be paying more!