income tax

In the last three months, ONE Massachusetts and other organizations across the state organized meetings with legislators urging them to support an An Act to Invest in Our Communities, a revenue reform bill that would raise $1.3 billion and help stop the deep cuts outline in the FY ’12 budget.

From what we’re hearing, these meetings -- along with visits to legislators, phone calls and letters – have sent a strong message to the Legislature that there are individuals and organized constituencies throughout Massachusetts who understand the need for comprehensive revenue reform.

Don’t take my word for it – here’s what Rep. Steven Kulik said Monday in response to a GOP proposal to cut the state’s income tax:

“I think it's a little unusual that in the two weeks since the House Ways and Means Committee released the budget, the taxpayers I've been hearing from have not been calling or emailing me to say lower our income tax rate. They haven't been calling to say cut revenue. They've been calling to say please increase spending on services that matter to me. Whether that' son clothing allowance to poor children, local aid.”

On Friday January 28th, the ONE Massachusetts leadership team endorsed our legislation and action agenda for 2011. We are excited to work with you on this diverse range of opportunities, that, with your help, will help us further build a ONE Massachusetts that creates equal opportunities for all, in line with our collective value proposition:   "We want-and recognize that all Massachusetts residents deserve-healthy lives; healthy families; quality education; safe, vibrant communities; and broadly shared prosperity in a thriving state.

These are goals we cannot achieve alone and can best accomplish by working together through a participatory, democratic government.

By joining our diverse voices, experiences and resources together, we can create the public will to build effective, fairly-funded government that achieves these goals."   Our endorsed campaigns and initiatives for 2011 include the following:

CIVIC ENGAGEMENT 
Multi-language training materials: We believe that our training materials and our most important communications should be available to the vast majority of people in our communities, including those for whom English is a second language. In collaboration with Mass Senior Action Council members, we are currently launching a project to translate our training materials into 5 different languages that will be accessible on our website.   Civics in Schools: Together with Teens Leading the Way, a teen-led state wide group that has been working for over the last 2 years to do the necessary research, we are endorsing the campaign to make civics a graduation requirement in Massachusetts's high schools. [Senate Docket 01635]

The teens have been gathering together to learn about the legislative process, building positive relationships with their own legislative delegation. The next step is to identify local allies, including local school committees. If you would like to help this group with this campaign please feel free to contact Geoff Foster from UTEC.

Redistricting Reform: Together with MassVote and Oiste, ONE Massachusetts will be part of a coalition of non-profit organizations and community groups working on a re-districting campaign to ensure that the voices of all sectors are properly represented at the state level.

REVENUE REFORM
"An Act to Invest in Our Communities": Our government can only continue to build and maintain our public structures if we support our state with adequate funding. We are facing a difficult challenge this year:  closing a budget gap that would prevent us from continuing to invest in our communities.  We are endorsing the "Act to Invest in Our Communities" sponsored by Rep. James O'Day and Sen. Sonia Chang-Diaz [House Docket 02261 & Senate Docket 1012] because we believe this bill is a step forward in creating a more equitable tax system for all and in addressing our current revenue shortfall.

The act proposes an increase in the income tax rate from 5.3% to 5.95%, including an increase in personal exemptions from $4,400 (single)/$8,800 (married) to $7,900 (single)/$15,800 (married). It also proposes an increase of the dividends and interests rate from 5.3% to 8.95%, with an exemption for low and middle income seniors and disabled persons.

The proposal would yield up to 1.2 billion dollars, necessary to taking a more balanced approach to the current budget gap and continuing to support our public structures. 

GOVERNMENT REFORM   "An Act to Promote Efficiency and Transparency in Economy Development": This Act is sponsored by Rep. Carl M. Sciortino [House Docket 02946] proposes to increase transparency in the way our state government grants tax credits to corporations: It implements more detailed reporting and clawback provisions for when grantees fail to achieve the outcomes they outlined when the state government considered granting their tax credits. 

Together with MassPIRG we will also work in making the Legislature implement its promise of making the state expenditure/revenue items accessible through their website.

Please contact your legislators TODAY - urging them to support the above campaigns!

ONE Massachusetts is a stronger voice for social, economic, and racial justice today because our network of ONE Mass members is growing smarter and stronger every day.

All over the state, community-based networks of activists, both organizations and individuals, are working together to reach out to neighbors and friends to get them engaged in local and statewide campaigns to restore and rebuild their own communities. 

If you would like to participate with us in any of our 2011 initiatives please do not hesitate to contact us to get you connected in our ONE Mass Network. 

Sincerely,
The Staff of ONE Massachusetts

Massachusetts stands out as the top 2 state in terms of clean energy leadership among states in the US. The federal government recently awarded an important financial grant to the state for investments in our education system. But while it is clear that all of this is only possible with our shared support, it often feels uncertain how this support should best be provided.

A recent report from the Tax Foundation shows us the importance the personal income tax has in the overall state's finances:

“Massachusettsis the third most income-tax-dependent state in the nation, deriving 36.8 percent of its revenue from its 5.3 percent tax on individual earnings, and nearly cracked the top-ten list of states most dependent on property taxes, according to a new report from the Non-partisan Tax Foundation”

“Massachusetts derives 34.3 percent of its total government revenues from property taxes, 18.4 percent from sales taxes, 6.4 percent from corporate taxes and 4.2 percent from licenses and other taxes, according to the report.”

The personal income tax in Massachusetts has been subject of debate for a few years now. Despite having a flat rate of 5.3%, adjustments such asthe Earned Income Tax Credit and exemptions for our lowest-income taxpayers mean that it is one of our state’s most progressive taxes. Over the years, people have also pushed to make it even more progressive by implementing a graduated income tax in Massachusetts – taxing higher income earners at higher levels than low-income earners.

The wellbeing of communities across the Commonwealth relies on our capacity to work together through our government to continue building and supporting our public structures that provide quality education, public health, stable legal systems, safe recreation, clean water, and much more. We work through our government to protect these services when we elect our representatives, become civically engaged in our communities, and pay our taxes.

In a Globe article dated February 14th, Jennifer Fenn Lefferts reported how Concord is considering creative ways to reform its revenues to make its tax system more equitable. With an average property tax bill of $10,128, Concord has had trouble retaining lower-income and elderly residents and working farms.

The proposal calls for lowering the property tax and imposing a 2 percent tax on income. This means that each person would contribute a more equitable share of his or her income to the local community, making the overall local tax system more progressive.

Some other cities and states in the country, including New York City, allow the implementation of local income taxes. The Massachusetts Legislature would have to amend the state constitution to allow cities and towns in the state to implement and collect this new source of revenue.

It is interesting to note that Concord is considering a progressive local tax proposal at a time when some elected officials say there is no interest for more taxes. In addition to statewide revenue reforms, like the five previous ballot attempts to build a more progressive tax structure, maybe it is time to help communities like Concord create a tax system that sufficiently funds the needs, programs, and structures we all value and rely on in our own communities. Through these local initiatives we can demonstrate to our elected officials that our state as a whole needs real solutions to address our budget gap and the lack of resources needed to maintain and rebuild our public structures.