Monday, February 5, 2018

Representative Dooley: Tax Increases Should Not Be on the Table in State Budget Talks for FY19

The following column by State Representative Shawn Dooley (R-Norfolk) appeared in the February 4 print edition of the Boston Globe's West section in response to the question “Should any increases in major state taxes be on the table instate budget talks for next year?”:

In an ordinary year, increasing the taxes of the hard working men and women of Massachusetts should only be on the table after all other options are exhausted. But as we all know, it is not an ordinary year and raising taxes should definitely be off the table for this year’s budget debate.

The reality is that the world has changed dramatically over the past year and fiscal year 2019 is on track to follow course. The new federal tax plan that was passed last month creates a tremendous amount of uncertainty for many of our fellow citizens and has the potential to have a negative impact on the Massachusetts economy. Fortunately, it appears the benefits might minimize these negatives but at this moment it is too early to tell.

The creation of the $10,000 cap for state and local tax deductions in the new federal law is going to send shockwaves through our state. If we couple this with the proposed additional 4 percent tax on earnings above $1 million — the subject of a state ballot question this fall — and our punitive death tax, Massachusetts is poised to be a costly state for taxpayers. To add additional tax increases onto this already excessive structure would be pure folly.

While the Commonwealth is anticipating increased revenue collections, we must still remain vigilant in weeding out waste and abuse. As legislators, we need to make the tough choices to streamline programs and ensure that we spend our neighbors’ hard earned money efficiently.

Having a foolhardy approach toward spending, justified by a tax increase, only sets the groundwork for disaster when the economy eventually adjusts.

Massachusetts is a wonderful place to live; but if we are not fiscally prudent, it will simply become too expensive to raise a family or run a business here. New Hampshire is already trying to poach our current and future businesses by touting their low taxes and inexpensive cost of living. If we vote to raise taxes this year, it will send the message that Massachusetts is not “open for business;” and instead we are embracing the old “Taxachusetts” moniker.