ADVERTISEMENT

Homepage > Boston News

Income Tax Question Defeated

Voters Want No Change Made To Tax Rate

POSTED: 8:19 pm EST November 4, 2008
UPDATED: 10:19 pm EST November 4, 2008

Bay State voters overwhelmingly defeated a move to abolish state personal income tax when they cast their ballots Tuesday.

Question 1 would have reduced the tax rate from 5.3 percent to 2.65 percent for the tax year beginning on or after Jan. 1, 2009, and would have eliminated the tax for all tax years beginning on or after Jan. 1, 2010.

It would have dealt a $13 billion blow to the state and that Massachusetts would lose about 40 percent of its income, according to many groups that were against the measure. Some were concerned it would put education, health care and public safety at risk.

"We clearly see the voters of Massachusetts sending a strong message that we care about good schools, police and fire protection, good roads and bridges, and especially strong communities," said Steve Crawford, of the Coalition for Our Communities, which led much of the opposition to the question.

Michael Widmer, of the Massachusetts Taxpayers Foundation, saw the measure as "fool's gold" and called it "a battle between emotion on the one hand and reason and facts on the other."

Passage of Question 1 would have required spending cuts of more than 70 percent in almost all state programs, including state and county prisons, court systems, human service programs and support for the University of Massachusetts and other state colleges, Widmer said.

Some opponents said that they were concerned that cuts in local aid would lead to higher property taxes that for many residents would more than offset any income tax savings.

Those in favor of the measure, including the Committee for Small Government, said it would have saved taxpayers an average of $3,700 per year. The Committee for Small Government argued that it would take billions out of the hands of Beacon Hill politicians and put it back in the hands of the voters.

"We knew this was a David vs. Goliath battle," Committee Chairwoman Carla Howell said. "All we needed was a bigger stone."

Right now, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not have a state income tax. New Hampshire and Tennessee do have an income tax on interest and dividends.

Sponsored Links