Foes target income tax-repeal effort

By Matt Murphy, Eagle Boston Bureau

Article Last Updated: 03/12/2008 10:54:21 AM EDT

Wednesday, March 12

BOSTON — No longer considered just a quixotic bid to rein in government spending, labor unions and others groups are preparing to funnel "several million dollars" into an effort to fight this year's ballot initiative to repeal the state income tax.

The Committee for Our Communities — a coalition of unions, business and municipal organizations — is still in the organizing process, but are prepared to hold little back in order to defeat the income-tax repeal, a Democratic strategist involved in the discussions told The Eagle.

Financial records on file with the state show no activity though Dec. 31. However, the Massachusetts Teachers Association, S. E. I. U. 1199, and the AFL-CIO are all prepared to make significant financial contributions, sources told The Eagle. The Massachusetts Municipal Association will also play a major role in public outreach, but will not expend any financial resources.

The coalition is also recruiting Peter Meade, a former executive vice president for Blue Cross Blue Shield Massachusetts and community activist involved in many thorny state issues, to head the effort.

The Committee for Small Government, led by one-time U.S. Senate and gubernatorial candidate Carla Howell, tried to repeal the income tax six years ago. Given little chance of passing, the ballot initiative surprised many in 2002 when it got more than 45 percent support statewide.

The financial commitment to defeat the ballot question's second go-around underscores just how serious many in the political establishment are taking this year's bid.

"I think we took it seriously last time, but there will be a greater level of public discussion about this ballot question, which will be a good thing," said Geoffrey Beckwith, executive director of the MMA. "Any proposal to cut taxes always seems to have some basic appeal, but it's not going to be enough for the sponsors this time to say small is beautiful."

The Legislative Committee on Revenue will hold a hearing on the ballot question today. Lawmakers have until May to pass the bill on their own, a unlikely scenario given the tangible lack of support on Beacon Hill.

If not acted upon by the Legislature, Howell's group will have to gather an additional 11,099 signatures to get on the November ballot.

A repeal of the state income tax would essentially strip $11 billion from the state budget, returning an average of $3,600 to the more than 3 million Massachusetts taxpayers. Income tax revenue accounts for about 40 percent of the state budget.

Howell, who ran for governor in 2002 as a Libertarian, said the state is more than capable of delivering the same level of services with a reduced budget, which next year could top $28 billion.

Gov. Deval L. Patrick last week called the initiative "irresponsible," and last fall said it was a "dumb idea." Opponents, including Beckwith, have argued it would have a "crippling effect" on the economy forcing the state to drastically cut jobs, services and support for schools and other programs.

"If it were possible to produce the same results for $17 billion a year, would you support our End the Income Tax ballot initiative to give back the other $11 billion to the 3 million workers and taxpayers who earned it?" Howell said in a direct response to Patrick.

"This is an issue we need to take seriously. We want everyone in Massachusetts to understand the dire consequences of this initiative," said Sarah Nathan, spokeswoman for the MTA.

There are currently nine states in the United States that do not levy an income tax on residents, including New Hampshire.