Eliminating the Income Tax - Against and In Favor

Against

  • Eliminating the income tax is an utterly unrealistic and irresponsible proposal that would eliminate over half our state budget and devastate the very public structures such as schools, hospitals, nursing homes, public safety and transportation systems that every state in the nation relies on to build a sustainable economy.
  • Income tax is more progressive then sales and local taxes, and is good on both vertical and horizontal equity.
  • The proposal would cause the state to lose federal matching monies as well since we would not be able to finance the state’s share of certain programs. Medicaid is one such program half of which is paid for by the federal government.
  • Eliminating the income tax would eliminate the jobs of tens of thousands of teachers, fire fighters, police officers, nurses and other public employees.
  • Critical social programs and structures are in danger because of cuts already made. For example, we are spending $452m less than in FY2002 on public education, and the Public Health budget has been cut 11.5% since FY2001.
  • Cutting the income tax would force an increase in property, sales and other taxes.
  • Although proponents claim fail to point out that the implication of “average return” is that most workers will receive less than $3,600 while people in the top income brackets will keep the bulk of the money.
  • State spending has not “doubled” as proponents’ claim—adjusted for inflation, state spending went up by about one-quarter, which was immediately consumed by increases in education and health costs.

For additional information see:

Mass Teachers Association
Massachusetts Taxpayer Foundation from their 2002 campaign

 

In Favor Of

  • Eliminating the income tax will give back some money to most workers in Massachusetts.
  • It will strip the government of $11 billion dollars and thus force the state legislature to streamline the Massachusetts state budget.
  • Eliminating the income tax will draw more businesses and thus more jobs to Massachusetts.
  • Nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—have no income tax, why should we?
  • This ballot initiative could set in motion copycat ballot initiatives in 4 or 8 or 12 more states in 2010 and 2012.

For additional information see:

Committee for Small Government
Citizens for Limited Taxation