Gov. Patrick: Let’s hike income taxes, drop sales taxes in MA

posted at 3:11 pm on January 18, 2013 by Erika Johnsen

All of these State of the State addresses going down this past week have certainly yielded an interesting range of proposals, including on the tax front — and while the governors of Louisiana and Nebraska are proposing to eliminate their income and corporate taxes in an effort to make their states more competitively pro-growth and business-friendly, Massachusetts’ Democratic Gov. Deval Patrick unveiled some proposals for fairly aggressive changes to his state’s tax code that would take the opposite track.

Hoping to raise new revenue for transportation and education funding, Patrick is proposing to raise Massachusetts’ income tax rate and drop the sales tax instead:

Governor Deval Patrick unveiled more elements of his tax plans Thursday, 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.

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.

The new elements follow Patrick’s announcement Wednesday of what is the core of 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. 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. …

All told, Patrick’s changes, which also call for the elimination of some corporate tax benefits, would raise taxes by $1.9 billion annually, money the governor wants to use to shore up and expand transportation systems and broaden education programs.

It sounds like plenty in the business community are skeptical that such a change would make Massachusetts more competitive in New England, especially with neighboring New Hampshire having a relatively attractive and inexpensive system, and it feels like Patrick is taking up the mantle of “asking the wealthy to pay a little more” to fund extra spending, a message President Obama touted so heartily in his campaign. And then, of course, it’s not quite in keeping with Deval’s own campaign, you know:

In the heat of his 2010 campaign for re-election Gov. Deval Patrick — whose record at the time included signing a 25 percent sales tax hike into law, OK’ing tax increases on restaurant meals, proposing a gas tax increase, and routinely pitching new taxes on candy and soda — denied any interest in raising the state’s income tax. In fact, Patrick’s spokesman at the time accused Baker of resorting to “distortion and demagoguery” by even suggesting Patrick would raise income taxes in a second term. …

The lame duck governor has stopped pretending that he could be satisfied with baby tax increases and has embraced a $2 billion raid on taxpayer earnings — part of yet another campaign to cement his legacy. …

Patrick wants a “fact-based” debate, so here are a few facts taxpayers should know. At $32.5 billion the state budget today is nearly 30 percent larger than the final budget signed by Mitt Romney. The state expects to collect nearly $13 billion in revenue from income taxes alone this year, $1.1 billion more than when Patrick took over in 2007, even after the huge drop that came in the recession years and with a state unemployment rate that is climbing.


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Raise them both. At a 110 percent rate. I sure as hell don’t care and those morons vote these morons in.

Marcus on January 18, 2013 at 3:17 PM

Damn liberals are all hopeless, chronic “taxaholics” and their craving for other people’s money is more addictive than heroin.

rplat on January 18, 2013 at 3:19 PM

Anything Massachewsus wants to pass in the way of tax hikes is just fine and dandy by me.

Limerick on January 18, 2013 at 3:20 PM

It’s Massachusetts. The dummies that voted for the moron deserve what they get.

HotAirian on January 18, 2013 at 3:20 PM

How STUPID can you be?

Key West Reader on January 18, 2013 at 3:21 PM

great and this will probably be one the people up in 2016 who we’ll be asked to vote for and if not then you’re a raaaaaaaacist!

gsherin on January 18, 2013 at 3:21 PM

Why they don’t already tax income at 80% on top of a 25% sales tax boggles the mind.

Isn’t that what the libs keep saying they want? Moar taxes!!

Washington Nearsider on January 18, 2013 at 3:23 PM

If higher taxes on cigarettes decreases smoking, does that mean taxes on the workforce decreases working?

LaughterJones on January 18, 2013 at 3:24 PM

great and this will probably be one the people up in 2016 who we’ll be asked to vote for and if not then you’re a raaaaaaaacist!

gsherin on January 18, 2013 at 3:21 PM

The problem is he’s now got a track record of being a big tax and spend lib which will scare off middle income voters. Cuomo’s done himself no favors either this week with the new gun laws he signed. At the rate things are going, Hillary better run in 2016, cuz I don’t know who else the Dems have got.

Doughboy on January 18, 2013 at 3:25 PM

A few days ago he was pushing:
increase per gallon of 30 cents for gas
increase the state sales tax from 6.25 to 7.75 percent
increase in the income tax from 5.25 percent to 5.66 percent
add a 2.4 cents per mile green fee for vehicle miles traveled

I guess he got some push back on those.

Dr. Frank Enstine on January 18, 2013 at 3:25 PM

Punish work and reward excessive spending. No big surprise for Mass I guess.

AndrewsDad on January 18, 2013 at 3:25 PM

The only cement in Patricks legacy should be part of a pair of shoes.

Viper1 on January 18, 2013 at 3:26 PM

It’s Massachusetts. The dummies that voted for the moron deserve what they get.

HotAirian on January 18, 2013 at 3:20 PM

What about the ones that didn’t?

Dr. Frank Enstine on January 18, 2013 at 3:27 PM

Back-asswards, as usual.

UltimateBob on January 18, 2013 at 3:27 PM

Hopefully, many people will just use their feet and move out and move as fast as they can.

CoffeeLover on January 18, 2013 at 3:28 PM

That’ll be great for the states around MA whose citizens can go there for tax-free purchases! Win!

Bob's Kid on January 18, 2013 at 3:28 PM

What about the ones that didn’t?

Dr. Frank Enstine on January 18, 2013 at 3:27 PM

Resist. Oh, that’s right, they can’t.

Limerick on January 18, 2013 at 3:28 PM

Gov. Patrick: Let’s hike income taxes, drop sales taxes in MA

…and then once in place…it’s EASY to put into place user or consumption F E E S…!!!

KOOLAID2 on January 18, 2013 at 3:29 PM

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.

Just in that sentence :
1) discourage use of mass transport
2) Make college more costly
3) Punish younger families.

Way to go Gov. !!

Jabberwock on January 18, 2013 at 3:30 PM

Theresa! We’ve gotta move the damn yacht again!

can_con on January 18, 2013 at 3:31 PM

Well, just when I thought we couldn’t get any more New England idiots escaping to North Carolina, this buffoon sends another herd our way.

Thanks Patrick, ya ninny!

LoganSix on January 18, 2013 at 3:32 PM

That’ll be great for the states around MA whose citizens can go there for tax-free purchases! Win!

Bob’s Kid on January 18, 2013 at 3:28 PM

They already do that.
Now he is chasing them out of the house entirely.

Jabberwock on January 18, 2013 at 3:32 PM

Laugh all you want, the man is very likely to become our next president.

Free stuff, class warfare, and the right skin color? Tough to beat in the new tribal America.

Rebar on January 18, 2013 at 3:33 PM

Aunt Zeituni must need a bigger condo.

ctmom on January 18, 2013 at 3:34 PM

Let us do some very simple math…

The socialist fool is proposing an increase from 5.25% to 6.25% in state income tax but he wants to decrease sales tax from 6.25% to 4.5%… (Note: In Massachusetts there is no sales tax on food and cloth)…

So if someone makes $ 50,000 a year in Massachusetts and his state income tax goes from 5.25% to 6.25% he will be paying an extra $ 500 a year… Now in order to “offset” his loss in income tax via reduction in sales tax he has to buy $ 28,571 in TAXABLE goods (i.e. Non-food and Non-cloth related goods) to save $ 500 in sales tax…

Enemies of socialist are Truth, Facts, and Math…

mnjg on January 18, 2013 at 3:35 PM

i don’t live in MA, but i’m all for it! tax those idiots to death for all i care!

at some point, even those idiots will realize, it’s not fair to keep taxing those that make money, and giving to those that don’t even try. i’m sure the idea behind the lower sales tax is so that “poor people” don’t have to pay as much. but that just means they’re contributing even less to their state. fair share my a$$

jetch on January 18, 2013 at 3:35 PM

How STUPID can you be?

Key West Reader on January 18, 2013 at 3:21 PM

.
HI, Key West Reader !

Now to answer your question . . . . . . . . it’s Massachussetts, for the love of Pete. How stupid do you have to be to continually reelect the late Tedward Kennedy?

There ain’t no “bottom” to the stupidity of New England progressives.

listens2glenn on January 18, 2013 at 3:36 PM

Giving people less take home pay is the perfect way to take advantage of dropping sales taxes!

Idiots.

2lbsTest on January 18, 2013 at 3:36 PM

The only cement in Patricks legacy should be part of a pair of shoes.

Viper1 on January 18, 2013 at 3:26 PM

Keep it classy!

Besides, you shouldn’t be surprised to see Deval become a candidate for President in 2016.

And he just might win.

Del Dolemonte on January 18, 2013 at 3:37 PM

Yeah, that’s the thing to do!

Old Country Boy on January 18, 2013 at 3:41 PM

Besides, you shouldn’t be surprised to see Deval become a candidate for President in 2016.

And he just might win.

Del Dolemonte on January 18, 2013 at 3:37 PM

Yep. Because from now on, any party that nominates a white candidate will be branded as racist.

UltimateBob on January 18, 2013 at 3:43 PM

Can it be? The republicans may actually make a smart move.

Politically and morally the right thing.

esr1951 on January 18, 2013 at 3:44 PM

By All Means! I love seeing Marxists/Socialists, committing Financial Suicide! My only statement is; NO BAILOUTS! You want to go with Proven Failure, as your financial strategy, for your state, then don’t ask me to pay for it when you fail. Just like all the other ideologues who refuse to deal with reality, instead of Ideology. I’m not paying for your stupid, ideologically based decisions!

http://www.paratisiusa.blogspot.com

God Bless America!

paratisi on January 18, 2013 at 3:44 PM

Can he tax yachts parked in other states, too?

Dexter_Alarius on January 18, 2013 at 3:45 PM

Giving people less take home pay is the perfect way to take advantage of dropping sales taxes!

Idiots.

2lbsTest on January 18, 2013 at 3:36 PM

What are you talking about? :)… If you make $ 50,000 a year in Massachusetts and your income tax goes from 5.25% to 6.25% then you pay an extra $ 500 a year… Now you can make up for this $ 500 lost in income tax by purchasing $ 28,571 in TAXABLE goods ( non-food, non-cloth related goods) because this way will save $ 500 in sales tax as they are lowering the sales tax from 6.25% to 4.5%… See :)…

mnjg on January 18, 2013 at 3:46 PM

OT – former NO Mayor

Schadenfreude on January 18, 2013 at 3:46 PM

How stupid do you have to be to continually reelect the late Tedward Kennedy?

listens2glenn on January 18, 2013 at 3:36 PM

It had nothing to do with stupid and everything to do with the cult of Kennedy. To say that the Kennedy family can do no wrong as far as the people of MA are concerned is an understatement. All a Kennedy has to do is say they are running for office and it is an automatic win for them.

Dr. Frank Enstine on January 18, 2013 at 3:46 PM

it is time for a nation-wide state-level effort to peg government employment to a very low percentage of total state population, likewise peg tax demands / receipts to a low % of state GDP and/or reported income. It is time to massively prune back Government in these United States. One way or another. Be it oderly, via collapse and reformation, or by revolution, it doesn’t matter to me which. The ongoing malfeasance is too great to support or tolerate any longer.

rayra on January 18, 2013 at 3:46 PM

‘Cry ENOUGH! and let slip the Dogs of War’

rayra on January 18, 2013 at 3:46 PM

Heh, this will only keep attracting the losers to mass o 2 shits.

The democrats do everything that defies logic & reason……

redguy on January 18, 2013 at 3:47 PM

Liberal/clueless voters deserve the liberals they elect. It looks like Taxachusettes is following in Mexifornia’s footsteps.

cajunpatriot on January 18, 2013 at 3:49 PM

Do a twitter search for liberals’ reaction to this — good entertainment.

Even Taxachusetts liberals think this Patrick tax hike is excessive.

Robert_Paulson on January 18, 2013 at 3:50 PM

OT – former NO Mayor

Schadenfreude on January 18, 2013 at 3:46 PM

Wow. What a crook.

But his shenanigans pale in comparison to 1300 people losing their lives due to his fumbling of Hurricane Katrina preparation.

May he burn in hell.

UltimateBob on January 18, 2013 at 3:54 PM

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.

Not exactly, the burden is placed on the poor slob that sloughs off to work each day and lightens the load for the free loader. Everyone pays sales tax while only wage earners are taxed on income! How does it feel to support a whole group of folks that probably will never have to work a day in their lives? This is how the socialists keep their power. Sickening!!

Boats48 on January 18, 2013 at 3:56 PM

Wrong way, Mr. Patrick. Apologies for the repetition!

By the way, good to see you, KWR. :)

22044 on January 18, 2013 at 3:59 PM

Wow. What a crook.

But his shenanigans pale in comparison to 1300 people losing their lives due to his fumbling of Hurricane Katrina preparation.

May he burn in hell.

UltimateBob on January 18, 2013 at 3:54 PM

I’m not surprised either.

The Lord can’t bring them back, but maybe Democrats are DOA in Louisiana, due to his and Blanco’s ineptitude.

22044 on January 18, 2013 at 4:01 PM

So, Patrick want to further punish the producers with higher income taxes, while giving the parasites even less skin in the game. That sounds like a recipe for disaster. Do you want to earn money running a business? Flee Massachusetts and move to Texas. Do you want welfare and not even have to pay sales taxes? Head to Massachusetts.

Colony14 on January 18, 2013 at 4:10 PM

Does that photo show Patrick praying to Lucifer?

Mr. Arrogant on January 18, 2013 at 4:12 PM

I would like to see some state get rid of their property taxes. If I don’t pay my annual rent to the state and county, they can take away my house that is paid for. After the mortgage is paid off, the only thing I should have to pay for is insurance on it.

Also, I live in MN. Those MA taxes look good to me. Here our income tax rate is 8% and our sales tax is 6.5% (exempt is groceries and clothing).

Mirimichi on January 18, 2013 at 4:30 PM

They say the states are the laboratories to test different things and I am glad to see MA go for this plan to find out how it compares with those states eliminating income taxes. Let the test begin.

Pardonme on January 18, 2013 at 4:35 PM

If it were a full replacement of the sales tax with a flat income tax starting at the first dollar, but alas it’s not.

Steve Eggleston on January 18, 2013 at 4:47 PM

Yep. Because from now on, any party that nominates a white candidate will be branded as racist.

UltimateBob on January 18, 2013 at 3:43 PM

Except Democrats. They can nominate all the white candidates they want and will never, ever be branded as racist.

Washington Nearsider on January 18, 2013 at 4:48 PM

Gov. Patrick: Let’s hike income taxes, drop sales taxes in MA

Hey, sales tax on $300 Air Jordans is a lot.

bw222 on January 18, 2013 at 4:49 PM

No body ever said this man was smart. No body.

pat on January 18, 2013 at 5:04 PM

You go, Deval! Excellent ideas, all.

Massachowderheads voted you in, and they deserve to savor the fruits of their labors.
Ditto California.
Actions have consequences. Enjoy that.

orangemtl on January 18, 2013 at 5:07 PM

What about the ones that didn’t?

Dr. Frank Enstine on January 18, 2013 at 3:27 PM

You can move here to Texas. :)

Theophile on January 18, 2013 at 5:16 PM

Patrick is taking up the mantle of “asking the wealthy to pay a little more”

Oh?

Would that be the Kennedys, who had Rose declared a resident of Florida in order to avoid inheritance taxes?

Would that be John Kerry, off-shoring his yacht in another state in order to avoid taxes.

Yeah, ‘the wealthy’ in taxachuetts always step up to the plate, don’t they?

This is the same state that has a line on their state income tax form where you can VOLUNTARILY throw in some extra bucks in tax money. TO DATE, NO ONE HAS USED THAT BOX. Go figure.

GarandFan on January 18, 2013 at 5:17 PM

This would only put more pressure on the wealthy to leave. So… I’m all for it. I would vote for it in a heartbeat. Then again I voted for Prop 30 (tax hike) in California right before leaving for Texas. Give the liberals what they want then sit back and watch it implode.

Theworldisnotenough on January 18, 2013 at 5:25 PM

What about the ones that didn’t?

Dr. Frank Enstine on January 18, 2013 at 3:27 PM

We’re trying to flee to New Hampshire.

RedMindBlueState on January 18, 2013 at 5:25 PM

Funny how the low information posters like to paint sucha wide brush as if we all are left wingers. Brown won big in my small town. Romney got 52% too. This was repeated all across the state except two areas. The cities and western mass which is a lost cause. Please give us a break will you? It’s not out fault that nobody can stop the corruption in Boston and the other cities.

shanimal on January 18, 2013 at 5:36 PM

The likely Dem nominee for 2016 is getting in practice for carrying on the Obama torch in 3 years. The US will Zimbabwe within 30 years.

Rockshine on January 18, 2013 at 5:43 PM

Hopefully, many people will just use their feet and move out and move as fast as they can.

You haven’t thought this out, apparently. If they move out, they’ll move to a free state, and then start voting in the same confiscatory, tyrranical policies and politicians that they fled when they left the Northeast.

quikstrike98 on January 18, 2013 at 5:44 PM

You can move here to Texas. :)

Again, why are you inviting New Englanders to move to your free state? I presume you’ve already seen what Californian migration does to your various urban centers. They’re like a swarm of locusts, eating up your liberties.

quikstrike98 on January 18, 2013 at 5:45 PM

Again, why are you inviting New Englanders to move to your free state? I presume you’ve already seen what Californian migration does to your various urban centers. They’re like a swarm of locusts, eating up your liberties.

quikstrike98 on January 18, 2013 at 5:45 PM

Agree. Libs aren’t very bright. They make their states practically uninhabitable, move to greener pastures in red states and completely disassociate the politicians they elected where they were from the conditions that caused them to move.

The Count on January 18, 2013 at 6:13 PM

That’ll be great for the states around MA whose citizens can go there for tax-free purchases! Win!

Bob’s Kid on January 18, 2013 at 3:28 PM

That’s exactly one state. NH has no sales tax and a low tobacco tax. People from Mass already come here to make any large purchase and it drives the libturd Mass elites into fits of apoplexy.
So if Deval ends the sales tax and ratchets up the income tax, he will have a revolt on his hands.

They have a serious spending addiction.

dogsoldier on January 18, 2013 at 6:17 PM

quikstrike98 on January 18, 2013 at 5:45 PM

DON’T tar all New Englanders with the same brush.

dogsoldier on January 18, 2013 at 6:18 PM

it’s Mini-Me’s union pay off- teachers’ union and construction unions for re-electing King Barry I and electing the Fake Indian/ Real Marxist. he’s a lame duck so like his lord and master barry he’s going to pull out all the stops in taxing the living puck out of everyone middle class and up.

Mini-Me wants to be POTUS i’d wager. because they can bludgeon everyone and the GOP with a black man what makes anyone think they’d give up on a construct that’s gotten them so far? fortunately De-evolve has all the charisma of a cow patty…

mittens on January 18, 2013 at 7:27 PM

NH has no sales tax other than gasoline and prepared food. So Massachsetts loses lots of tax collections along the border. BUT MA charges MA and NH residents income tax if they work in MA. So this way they raise taxes on MA and NH residents but lower their tax on furniture and groceries and clothes and hopefully increase their tax collections.

livefreerdie on January 18, 2013 at 9:37 PM

That’s as big a state budget as New Jersey, which has 2 million more people and a lot more roads and highways to pay for.

rockmom on January 18, 2013 at 10:15 PM

hopefully increase their tax collections.

livefreerdie on January 18, 2013 at 9:37 PM

why? why hopefully? why is greater revenue to a corrupt bloated wasteful institution something to hope for?

tom daschle concerned on January 18, 2013 at 11:17 PM

That’s as big a state budget as New Jersey, which has 2 million more people and a lot more roads and highways to pay for.

rockmom on January 18, 2013 at 10:15 PM

New Jersey is more populated, but Massachusetts is larger, so their road/highway area may be more similar than you’d think.

cam2 on January 18, 2013 at 11:36 PM

I think that too many northern MA urban EBT card users run across the border into tax free NH, and spend their MA EBT card there.

I think EBT funds from MA have to be limited to being spent with MA vendors. Of course I favor even more restrictions, including, automatic debit to pay their bills directly to the landlord and the utility company as long as they get EBT.

MA is rife with EBT abuse, in the last quarter of 2012 they found 1 million of fraud without any of the lame unionized do nothing employees having to actually do anything. The year before the easy to discover fraud was about 5 million. And we all know the story of Senator Elizabeth Warren’s daughter suing MA to force them to send out voter registrations to welfare recipients at the taxpayer’s cost. (The government workers “machine” here does the bidding of the unions and the democrat party.) Lots of those mailings were undeliverable to any residential human being living in MA.

Duval usually does very little here, he is an Axelrod puppet and pioneered the Yes We can Campaign. Please take a look at this small video from the 2006 campaign. Know thine enemy. This incompetent individual also was “appointed” to the board of one of the mortgage companies and presided over bad loans to minorities and escaped unscathed. And sat on the board of Pepsi, I think due to the request…of Jesse Jackson, when Pepsi makes minority children obese and makes them have rotten teeth. He also has “done nothing” about the urban Chicago style crime in the worst minority and fatherless areas of Boston, where members of the community avert their eyes and would not put someone else’s young gang member in jail, because of the racial imbalance there…and just like Obama he lives in big homes, his in Boston and the vacation home in the Berkshires, and his kids went to lovely schools, while letting the unions ruin your kids school.

Watch the campaign ad, it’s the old fashioned Boston Try out.

http://www.youtube.com/watch?v=J-4cRvuTDU4

Fleuries on January 19, 2013 at 10:00 AM