The governor’s tax bill

Massachusetts Governor Deval L. Patrick, in his State of the State address, called for an increase in taxes by 50 percent.

According to The Boston Globe, the governor “unveiled more elements of his tax plans, including proposals to gradually raise the gas tax, MBTA fares, turnpike tolls and Registry fees, plans he says will stabilize the transportation system long into the future.”

Why not the excise tax, one might ask.

“Patrick’s blueprints would also eliminate 45 personal tax deductions worth $1.3 billion annually, including deductions for T passes, college scholarships and dependents under 12.”

Where is the governor’s call for new goals that can enrich the Bay State and set a course for the future, like expanded broadband to rural areas in partnership with Verizon, which owns most of the telephone poles in Massachusetts, more control over banks and its lending processes and a reduction in credit card fees below 20 percent to help the average person sustain his/her weekly spending?

Where is the entrepreneur leadership the governor has called for in the past? Where is the future of jobs, including growth in various sectors, to help stimulate the commonwealth’s economy?

The governor’s outlined what is central in his tax plan: “Raising the ­income tax from 5.25 percent to 6.25 percent while cutting the sales tax from 6.25 percent to 4.5 percent – a reduction of 1.75 percent. The changes, if approved, would take effect in 2014 and would result in higher taxes for about 50 percent of residents, with the biggest burden on higher-income earners,” according to The Globe.

The Berkshire Beacon believes there is no reason to lower the sales tax, which garners income from out-of-state tourists and buyers at the Lee Premium Outlets, along with other retail shops, in addition to increased income from meal and hotel/motel taxes.

No one likes taxes. While many can support an educational model, others would be more inclined to support bonding for transportation upgrades and changes.

Since Berkshire County is a tourist mecca, it would seem the governor would keep the sales tax as is and only raise the income tax to six percent.  There is a real possibility the governor will be looking at raising taxes on the people’s financials in terms of long and short-term gains.

Posted by George C. Jordan III on January 24, 2013. Filed under Opinion,View from the Tower. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry