A few weeks ago, Massachusetts Governer Deval Patrick called for increased state spending in the education and transportation sectors. Where will the state garner that much funding? Increased taxation.
Patrick reassured his supporters that the majority of programs would not experience any cuts under his proposed budget. In fact, most would experience increases. To pay for state spending Patrick simultaneously proposed taxation on consumer goods like sweets, carbonated drinks, and cigarettes.
“He’s really rolled the dice. This is a very aggressive budget.” Claims Michael Widmer, president of the Massachusetts Taxpayers Foundation (Boston.com).
The plans for a major increase is taxation will likely raise rates on about 50% of residents with a disproportional effect on higher income earners.
The plan will eliminate nearly 45 income tax deductions including ones for college scholarships awarded to students, T passes, and even dependents under the age of 12. In addition, gas taxes will annually increase as they will be tied to the inflation rate. Finally, fares for the MTBA would increase.
“It’s a growth budget,” Patrick said. Patrick’s aim is to make the tax code more progressive and to raise money to pay for his proposed increases in state spending.
Massachusetts currently faces a state deficit of $1.2 Billion dollars.
Lawmakers will likely consider some tax increases; however, the extent of those increases is currently uncertain.