State Tax Cut Merry Christmas

[Tony1941]

CLT UPDATE
Friday, December 16, 2011


------------------------------------------------------------------------
Help save yourself and them -- recruit a new member!


Greetings activists and supporters:


Twenty-two years after the "temporary, 18-month" income tax hike from 5 percent, eleven years after the voters' overwhelmingly demanded it be rolled back to its historic rate, it will be reduced to 5.25 percent on January 1st. Twenty-two years after the promise that the hike would be only "temporary," that promise remains broken.


Nine years ago the Legislature unilaterally "froze" the voters' mandate that it be rolled back to 5 percent, giving taxpayers another Beacon Hill middle-finger salute. Instead of returning the income tax rate to its historic 5 percent in 2003, as 60% of the voters ordered in 2000, next month the "freeze" will thaw for the first time — a whole five one-hundredths of one percent.


When it comes to defrosting a tax cut “freeze” we Massachusetts taxpayers have no fear of global warming; polar bears don't live long enough to be effected.


Five one-hundredths of one percent. That equates to 5/100ths of a penny on every dollar we pay in state income tax. Pardon me for not popping the champagne cork yet. As the Boston Business Journal concluded in its closing understatement, "Yay."


At this rate — five one-hundredths of one percent over nine years — the celebration won't happen for another 45 years. The champagne can continue to age until 2057, when the "temporary" tax hike will turn 68-years old.
If you're wondering how to spend your .05 percent income tax cut, just apply it toward the 25 percent sales tax hike of 2009


Chip Ford

Other voices



Five One-Hundredths of One Percent Tax Reduction: 45 more years before voters, taxpayers prevail?


Congratulations, taxpayers. The state of Massachusetts is handing out a tax break beginning Jan. 1, about enough for many couples to buy dinner at Applebee’s, provided they do not go wild with the appetizers.


The income tax reduction, from 5.3 percent to 5.25 percent, is the first in 10 years.


It comes more than a decade after voters approved a plan to cut the income tax to 5 percent within three years....


“It’s .05 percent; I don’t want to oversell this,’’ said Robert Bliss, spokesman for the Department of Revenue.


Bliss said an average family of four people that owns a home and makes a combined $100,000 would see a reduction of $39 a year. A single parent with two children living in a rented home would get about $9 in relief....


“It’s a good sign for our economy,’’ Senate President Therese Murray, a Democrat, said in a statement. “We put those benchmarks in place many years ago, and we’re keeping our commitment. . . . Now we need to make sure we keep this recovery going.’’


Keeping the commitment is a matter of interpretation. Republicans, who have pushed for a faster reduction in taxes, say the state has not fulfilled the mandate of the referendum.


“We should be at 5 percent; that’s what the voters approved,’’ said Representative Bradley H. Jones Jr., the Republican leader from North Reading. “It is kind of amazing that it’s taken nine years to get five hundredths of a point drop.’’ ...


Michael J. Widmer, president of the Massachusetts Taxpayers Foundation, said the small reduction announced yesterday is a positive step toward meeting the 5 percent promise, but acknowledged there is a price to be paid.


“On the other hand, given the realities of 2013, this will likely mean additional budget cuts,’’ he said....


Social service advocates say the state should skip the tax cut, given that many of the neediest are expected to be hit hard in next year’s budget....


But Citizens for Limited Taxation, which campaigned for the 2000 ballot measure, said that however paltry, the relief is overdue.


“We’ll take it,’’ said Barbara Anderson, the group’s executive director. “Every little bit helps. At least they’re still showing some respect that the voters told them to go back to 5 percent in 3 years back in 2000.’’