Save Our State of Massachusetts
Despite that Mass revenues exceeded projections by over 600 million dollars, Legislators settled on a 32 BILLION DOLLAR budget that relied on $500 million in tax increases. If this doesn’t gall you, then consider what Governor Patrick proposed. These increases would have increased the overall tax burden of residences and businesses of the Commonwealth by about $2 billion.
The Governor proposed: a 19% increase in the Massachusetts individual income tax rate from 5.25% to 6.25%, a 40% increase in the cigarette tax, expanding the sales tax to apply to candy and soda, and expanding the bottle redemption to bottled water and sports drinks (don’t kid yourself – this is a tax.) Most towns and cities have curbside re-cycling where these bottles would ordinarily go except for being charged more at the cash register for them if Patrick had his way. (Add to that the gas to get to redemption center). And then, there is the INFAMOUS tax on gasoline to increase in perpetuity !!!! that passed, (and MUST BE REPEALED, see https://sosmass.wordpress.com/2013/08/06/the-most-important-thing-you-can-do-today/ ), and his proposing to do the SAME with turnpike tunnel and bridge tolls by 5% every two years, and registry fees by 10% every five years!
The Governor also wanted to ELIMINATE TAX DEDUCTIONS (45 deductions or exemptions proposed, each effectively a tax increase), like the exemption on capital gains on home sales – Social security and public pension deduction –Dependents under age 12 – Childcare expense deduction –Parents’ personal exemption for full-time students –Tuition deduction –Employer education programs –MBTA Passes –Group life insurance –Health Savings Accounts –Commuter deduction. Corporate tax increases were not omitted, but are a bit more complicated so see http://www.boston.com/business/personalfinance/managingyourmoney/archives/2013/02/proposed_massac.html for further detail of this and all of the above.
The Governor also proposed repealing the FAS 109 deduction, and to change the apportionment rule relating to services, so now you are supposed to THANK your legislators that ONLY raised your taxes by 500 million, when they had 600 million in revenues they had not anticipated. But before you thank them, please turn your attention to the people who are really working for you, and help them, HELP YOU, and Save the State of Mass.
SENATOR BRUCE E. TARR
1st ESSEX AND MIDDLESEX
COMMONWEALTH OF MASSACHUSETTS
SENATE MINORITY LEADER
Senator Tarr’s office
Senator Tarr’s statement on computer software services tax
BOSTON – Senate Minority Leader Bruce Tarr (R-Gloucester) released the following statement today, following published reports that the new computer software services tax introduced as part of the transportation finance bill could be subject to further legislative review this fall:
“It should come as no surprise to anyone that taxing the state’s innovation economy is a bad idea. As far back as January, when the Governor proposed his version of the Fiscal Year 2014 state budget, Republican legislators have been warning that the new tax would seriously undermine the state’s competitiveness.
The new tax on computer software services was a bad idea when it was first proposed, and it’s a bad idea now. We have opposed it consistently from day one, offering multiple amendments to eliminate or replace it, arguing at length during the transportation finance debate about its dire consequences, and we will be unyielding in our efforts to repeal it. Putting a new tax on the innovation economy is no way to recover from a recession.”