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No State Income Tax

September 8, 2008

On November 4th, Voters will have the opportunity to repeal the Massachusetts State Income Tax with question 1.

This proposed law would:

  • Reduce the state personal income tax rate to 2.65% for all categories of taxable income for the tax year beginning on or after January 1, 2009.
  • Would eliminate the tax for all tax years beginning on or after January 1, 2010.
  • The personal income tax to which the initiative applies is the “income received or gain realized by individuals and married couples, by estates of deceased persons, by certain trustees and other fiduciaries, by persons who are partners in and receive income from partnerships, by corporate trusts, and by persons who receive income as shareholders of “S corporations” as defined under federal tax law.”
  • The proposed law would not affect the tax due on income or gain realized in a tax year beginning before January 1, 2009.
  • The proposed law states that if any of its parts were declared invalid, the other parts would stay in effect.

ref: http://ballotpedia.org/wiki/index.php/Massachusetts_State_Income_Tax_Repeal_Initiative_(2008)

While this would seem to put more money in the pockets of the workforce in Massachusetts, the proponents of this law, claims it will cut government wasteful spending.

Sure it will cut spending, but it will also cut the basic services in the cities and towns that are dependent on State money also. to a higher degree.

Cities and towns are already closing schools, highways and bridges are already falling apart, and communities are cutting back on social services and public safety.

it will only get worse?

lets take New Hampshire as example, while they have no state income tax, they nickel and dime you to death for this and that with service charges and fees.

which would be better you ask?

Certainly the majority of people would benefit from not having a state income tax, it would force legislature to make tough decisions and more cost oriented, but it would also spur economic growth.

The true downfall.

Voting yes on question 1, would force cities and towns to impose more taxes.

In New hampshire there is a town tax, local education tax, state education tax, and a county tax.

here is a list of the town taxes and rates as of 2007

http://www.jacksonteamre.com/images/2007taxrates.pdf

I imagine there will also be an increase in any other fee you can imagine from tolls to firearm permits, to vehicle registrations.

So maybe repealing the state income tax isn’t such a good idea.

whats your thought?

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3 Comments leave one →
  1. ncitizen permalink
    September 8, 2008 10:18 pm

    Maybe what we are about to see is whether the voters think that those services that you are always touting are truly essential. Maybe they will decide that the income redistribution should be voluntary through charitys and the chrch rather from the state at the point of a gun.
    Under Prop 2 1/2 if we wish to spend more locally for bloated school budgets we will go to the polls and vote to support an override. Same for Fire and Police budgets. If we decide that spending at thew local level doesn’t require further bloating we will not.

  2. September 26, 2008 5:10 am

    I strongly support this bill. We do not receive any income or tax from a large segment of the younger/and certainly able to work people. They come from an are?a where there is no tax, will not work because they refuse to pay tax. Let them now fay for services used. Also, schooling, you have em, pay for their schooling. I woud have had many if I had known it was gonna be a free ride!!! My opinion but..will not change for any reason.

  3. October 26, 2008 5:57 pm

    It would be absolutely horrifying to see the state eliminate personal income tax (the most progressive form of taxation). Not only would this cut back many essential government programs, it would unfairly redistribute the tax burden, and subject everyone to larger fees for services and higher regressive taxes (like sales tax). My point… those that make more money can afford to pay proportionately more for state services that are the right of every citizen, regardless of income. Those who are poor are too often kept poor by means of 1)current economic systems of wealth distribution, 2)institutionalized racism, 3)environmental degradation, 4)lack of adequate schooling… the list goes on. If we believe that all people deserve the right to pursue happiness, than we must fight to preserve progressive tax models which bring us close to this dream becoming reality.

    Thanx.

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