Dear Neighbor,
This is my first shortish newsletter looking at proposed tax cuts and reforms. It includes some questions on which I'd like your thoughts. So RSVP!
The budget debate this year has started with the question of how much revenue will be available. Governor Maura Healey has proposed a budget based on a number of tax cuts, reducing some budget items to allow for those cuts. The total budget would increase slightly after adjusting for inflation, because of expected higher tax revenue.
The House is expected to vote this week on a tax proposal, possibly similar to one they passed last year as part of the Economic Development package. The legislature put tax proposals on hold after learning that a 1986 law, 62F, would require the state to issue $3 billion in tax refunds.
Vox Populi?
A group called Priorities for Progress last week released a poll which the Globe summarized: "A majority of Massachusetts voters would prefer for Beacon Hill to deploy its budget surplus toward reducing taxes rather than increasing overall spending."
Here are the results of that question, after people are told that Massachusetts has "a large budget surplus."
It's not that surprising that people would prefer undefined tax cuts that might benefit them to cuts to "government programs" which are also undefined.
Interestingly, Common Start, which advocates for early childhood education, conducted a poll which found opposite results. The poll asked people if they want a specific government program funded without mention how it would be paid for. It showed overwhelming support for universal child care, almost the same support as for cutting taxes. That program would require around $5 billion a year in "increased spending on government programs."
What conclusions would you draw from these examples?
I'm trying a new format for newsletters. Usually I spend a lot of time writing about many aspects of an issue, with lots of information and links. This time, I plan to write 2-3 letters about various tax cut plans, how they would affect different groups of people, and how they might affect spending on "government programs." I'd appreciate your feedback on different formats.
Stay safe and stay in touch!
|
|
|
|
|
