revenue

#Wal-Mart, #Bank of America bought film tax credits - A story of How the State Lost Out on $4.7 Million Tax Revenue

Filmmaker Daniel Adams is being charged with fraudulently selling $4.7 million in MA film tax credits to Wal-Mart and Bank of America so they could reduce their MA taxes.  Supposedly the corporations did not know Mr. Adams had committed fraud by inaccurately reporting the costs of the films he produced, thereby increasing the tax credits he could get.  $4.7 million, that translates into a lot of jobs and services we need to restore to our communities to make them healthier and safer for all of us.

Assistant Attorney General Margaret Parks said the state cannot recover the $4.7 million in lost tax revenue from Wal-Mart and Bank of America because Adams’s expenses had been certified as accurate by an independent accountant, whose name has not been disclosed. The state’s film tax credit law awards to filmmakers tax credits equal to 25 percent of whatever they spend in Massachusetts; the tax credits can be sold back to the state or to a third party. [CommonWealth Magazine]

Lawmakers propose three casinos, one slot parlor as gambling plan emerges

Are you ready for another casino gambling proposal from the Governor and the State House Leadership?  It seems they're ready for prime time with a 133-page bill which would provide for the development of three casinos and a slot parlor, itemizing the respective development fees, and collections of the state's share of the revenues.  Let the betting, I mean vetting, begin...

Anyone applying for a gambling license would have to pay the state a $350,000 non-refundable application fee...The casinos would pay the state 25 percent of their revenues; the slot parlor would pay the state 40 percent of its revenue and another 9 percent to a special fund for the horse-racing industry...A quarter of the state’s casino revenue would be sent to cities and towns... The state would send another 5 percent to a special fund to help compulsive gamblers.  [Full Article: Boston Globe Metro Desk]

Summer Campaign on Vacation?

Sometimes it seems like the whole world is on vacation in late August, and even the developments in Libya or hurricanes headed for Haiti seem far away. Never mind discussions about tax reform.

Yesterday while reading two Boston Globe articles I couldn’t stop thinking about the role of government in our communities and what we value in them, and how we decide to participate in government and pay for it. 

Certainly the current national deficit debate has revealed that different views of government’s role has fueled a hot debate about how government should work.
 
One Massachusetts Network Members would argue that an increasing income gap among our fellow residents does not create an environment of prosperity needed for all to thrive in this society. Industries need to have the proper public and human infrastructure to be successful such as an educated and healthy workforce, a steady legal system, a good telecommunications system, among many others. All these variables need resources to exist and be maintained.
 
On the article Between haves, have-nots, an ever greater gulf we learned about the growing financial disparities between the east and west sides of the state.
 
The study paints a stark picture of two commonwealths, in which the gap between rich and poor, east and west is growing. For example, the inflation-adjusted median income of affluent families in Greater Boston has grown 54 percent since 1979, to $230,000 from $150,000 a year, largely due to high-paying technology jobs.
 
In Berkshire County and the Pioneer Valley, where decades of plant closings have left hollowed-out economies, the inflation-adjusted median income of the poorest families fell 24 percent, from $21,000 a year in 1979 to $16,000 - on par with some of the most impoverished parts of Appalachia.

Anxiety rises as stimulus dries up

It should not have been a surprise to anyone that the federal stimulus dollars provided to MA were going to be fully spent during the fiscal year 2012 budget cycle, if  not already spent in the previous year.  We were riding a temporary wave of economic recovery euphoria when for a couple of months tax revenues had been higher than last year.  Now that the stock market has declined dramatically, our current tax revenues have also declined.   In fact, MA tax revenue collections are lower than in fiscal 2008.

“The hope was that by now the private sector would be taking the baton from the federal government and running with it,’’ said Mark Zandi, who is the chief economist for Moody’s economy.com.  “But that really hasn’t happened, at least not yet,’’ he said. [Full Article: The Boston Globe]

From some of the richest, two cheers for higher taxes

Warren Buffet raised the profile of the discussion of taxing higher incomes ($1 million and above) at higher rates.  He also focused the discussion on the type of income and the tax rates - wages versus investment income where investment income (including hedge fund managers income) currently carries a lower tax rate. 

So, what do some of  the wealthy in Mass. think about Mr. Buffet's revenue/tax/budget proposals?

“It serves to set an example that some people who can well afford to pay more are paying more,’’ said Cummings, a local developer and founder of the Cummings Foundation, one of the largest philanthropic organizations in Massachusetts...Jack Manning, chief executive of the real estate finance company Boston Capital Corp.,  "If more tax revenue is needed to tame the deficit, he said, it should come only from those with deep resources."...Others are less enthusiastic or put caveats on their comments.  [Full Article:  The Boston Globe]

Coalition campaign will press Brown to hike taxes on wealthy

A coalition of unions and liberal groups plans tomorrow to unveil a mobile billboard urging Senator Scott Brown to support higher taxes on the rich and on corporations to help solve the nation’s budget crunch.
 
The coalition sponsoring the billboard includes the Service Employees International Union 1199, Massachusetts Teachers Association, Mass Senior Action, and MoveOn.Org Greater Boston - groups that traditionally support Democratic causes and candidates. [Full Article: Boston Globe

Lawmakers: Group-home deaths merit 'harder look'

What would it take for us to come together as a community and discuss how to fund all the services and programs that we need.  Things like this shouldnt happen for us to understand that we need more revenue to properly fund programs such as these ones: 

Several of the area's state legislators are questioning the Patrick administration's plan to close four of the state's six institutions for people with developmental disabilities in the wake of a report over the weekend that two developmentally disabled men died in state-run group homes in Tyngsboro and Tewksbury.
 
Although some argue that the cost of keeping open such state-run institutions for the severely developmentally disabled, such as the Fernald Development Center in Waltham, is astronomical, "it's not a dollar-and-cents issue," Donoghue said. It's a complicated question, she acknowledged, adding, "Let's look at how the state can best care for people who are the most vulnerable in our society." [Full Article: Lowell Sun]

Fire House Study Committee recommends Easton keep three fire stations open

Closing necessary firehouses and cutting local programs and services important for our communities should not happen in our state due to a lack of resources. It is time to take leadership and change the discussion about how we plan to raise revenue to pay for the structures that we all care about:

The fire house study committee has decided, after three months of meetings, interviews and review, that the town is a safer place with all three of its fire stations open. “This committee recommends that the town should strive at all times to have three stations open in the best interests of our citizens,” the report said, adding, “We are a study committee and take no position on how to advise the town on resource allocation.” [Full Article: Enterprise News]

John Crisp: Are we taxed too much?

Great article talking about what taxes pay for which sometimes we might get as granted:

For example, a few miles from my house I can ramp onto Interstate Highway 35. To the south lie Austin and San Antonio; to the north are Dallas and connections that will take me virtually anywhere in the U.S. via a series of carefully engineered, safe superhighways and secondary roads. This system, perhaps the best in the world, cost many billions of dollars to build and much more to maintain. Yet we use it as often and as much as we want - for free! Of course, it's not really free; we pay for it with taxes. Still, our fine highways are such a significant part of the ordinary psychological infrastructure of our lives that it's easy to forget that they exist because we decided to combine our money to build something that would benefit everyone, which is, I guess, one of the most basic definitions of civilization. [Full Article: Wicked Local - Northborough - Southborough Villager]

State Treasurer: Mass. Has A Shot At A Credit Upgrade

Good news for Massachusetts if our economy only relied on state finances. Unfortunately, the federal financial crisis affects us all. 

Grossman says as a precaution, the state will stop borrowing this month and, if needed, until October, when the new federal budget kicks in. Despite the uncertainty, he says the state’s debt status and revenue are in good enough shape to receive what the U.S. Treasury didn’t — a higher Standard and Poor’s credit rating. [Full Article: WBUR]

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