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Going to extremes with Question 1

There are only 57 days until the election, and while the national contest is riveting all eyes, let’s not forget that an important and potentially damaging referendum is on the ballot in our own state. Question 1, if passed, will repeal the State income tax. This seems ludicrous, given the fiscal crisis underway in many cities and towns, but it’s true. The last time this question was on the ballot was 2002, and it came close to passing with 45% of the vote. Now, times are tough and there is a fear that things might get even worse before we see improvement. People might be inclined to vote for Question 1, and get some short-term relief from higher gas and food prices. Even though the tax burden has declined in Massachusetts (see “Taxachusetts No More”), anit-tax sentiment is still high, and saying “no” to taxes is a knee-jerk reaction for many voters as well as politicians. But, as Governor Patrick said yesterday, “the services people say they want cost something.” This proposal will eliminate 40% (more than $12 billion) of the State’s revenues and will most certainly reduce local aid. Even the Republican leadership is opposing this measure which is once again sponsored by the Libertarian party, with Senator Richard Tisei (Republican, Wakefield) saying, “There are a lot of essential services we would not be able to perform….It’s too extreme.”

posted in Money Matters, State Concerns | 1 Comment

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