Massachusetts faces crucial decisions about how to fund our public services, and thus I deeply appreciated the perspective of economists Alicia Sasser-Modestino, Alan Clayton-Matthews, and Michael Goodman in their recent op-ed (With plummeting revenues, state should impose a temporary tax increase, Opinion, May 16). As we face an unprecedented economic freefall, cuts to public services will do far more damage than asking people who can afford it to contribute a little more in taxes.
While the authors refer to an increase in the personal income tax to help offset revenue declines, there are many other options to fund the essential services we all rely on. Among them, are dozens of ineffective corporate tax breaks that together now cost the Commonwealth over $1 billion a year. One example: The single sales factor tax break forfeits $180 million per year to mutual fund companies, an industry that has shed thousands of jobs in our state over the last two decades. As state revenues plummet, we must discuss the most effective use of these dollars during this unprecedented crisis.
With so many of our friends and families undergoing economic distress, how we invest in our people and the public good, including health care, schools, and transit will reflect our values now more than ever.
– Marie-Frances Rivera, President, MassBudget
https://www.bostonglobe.com/2020/05/22/opinion/other-revenue-options-besides-personal-income-tax/
Boston Globe
Marie-Frances Rivera
