Are tax increases an option? According to an October 17 Boston Globe story, a tax hike might be on the way … but not just yet. The Globe reported:
Thus far, [Governor] Patrick and legislative leaders have avoided any talk of imposing fees or new taxes, such as an increase in the gas tax, to help balance the budget.
Observers say this is because the governor and lawmakers don't want to risk angering voters who will be asked in a Nov. 4 ballot question whether they want to eliminate the state income tax - which generated $12.5 billion last year.
"With that on the ballot, any talk about raising taxes will take place after the election," predicted Senate Republican leader Richard R. Tisei. "But I am sure they are looking at ways to raise revenues."
"That's the elephant in the room that no body wants to talk about," said former state senator and 2002 gubernatorial candidate Warren Tolman.
Fees and taxes have been part of the equation in the major budget crises of the last 30 years. House Speaker Thomas M. Finneran used taxes as part of his budget balancing plan in 2002. Romney raised hundreds of million of dollars in fees to deal with the fiscal downturn he faced in his first year in office. Governor Michael S. Dukakis signed tax bills to deal with two of the state's worse fiscal crises in modern times, in 1975 and in 1989-90.
Asked yesterday about raising taxes, Patrick said during a press conference that it was not on the table.
"The time to go to the public for broad-based taxes is just not now," Patrick told a press conference Wednesday. "I don't think taxes are evil. . . . But I think people are squeezed right now."
Will there be a tax increase after Election Day in Massachusetts or not? That’s obviously the last thing the economy needs in that state. Ideally, the people of Massachusetts will send a strong message about just how evil taxes can be by voting to boot the state’s income tax.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
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