The Massachusetts Exodus - Is Income Tax Repeal the Answer?

Massachusetts residents will have an opportunity to vote to repeal the 5.3% State Income Tax this November. Secretary of State, Galvin, has placed the Tax Question in the first place on the ballot Boston Globe The Globe indicates that should this ballot initiative pass, it might end up costing the state approximately $12 Billion annually. Can Massachusetts afford to repeal the income tax?

The obvious problem with repealing a state income tax, or any of the taxes currently imposed on the people and businesses left in the State of Massachusetts would be the funding of state programs. The Massachusetts mandated health care plan is currently in debt, and those within the state who are unable to afford the coverage are assessed a $219 “fee” by the Massachusetts Department of Revenue NY Times

Additionally, there are 26 state mandated benefits under the Mandatory Mass. Health Care Act. It is projected that these mandates are costing employees and employers $1300 per year for a family plan.
Boston Globe Meanwhile, the legislature is currently considering new mandates to add to the plan, which will place an even larger burden on Massachusetts working families.

With the state’s population in decline (a growth estimate released by the US Census Bureau indicates a projected growth of 1.3 percent, compared to the national average of 7.2. Springfield, MA Republican

The States model insurance program cannot be entirely to blame for the continued exodus of Massachusetts residents, but is does play a roll. With rising fuel costs, (State Tax Added), and the subsequent rise in costs of essentials (Food and utilities) as a result, burdening the Tax Payers with any additional state programs may be why the ballot question is making special interest groups nervous and Baystate voters anxious to get to the polls in November.

Should the ballot initiative pass, will the State Income Tax be repealed? That is highly unlikely. The State legislature has a long history of placing a political party’s objective above the will of the people. A proposed ballot initiative on Gay Marriage was put to rest by the Mass Legislature this past year.
(The Ledger) The people wanted to vote - the Legislature felt it was not politically expedient to place a Marriage Question on the ballot. This is a Commonwealth, after all, where the will of the people matters little; which may go further to explain the Exodus. A note or two: Communism imploded due to heavy mandates and low to no business growth. Although one cannot see breadlines in the foreseeable future, one can absolutely see a change in the states population increasing objection and rejection of core principals that the legislature holds to be absolute. The Baystate is also affectionately referred to as “The People’s Republic of Massachusetts”. Should Massachusetts policy and political think be of national interest. Absolutely. A US House, US Senate and White house of like mind would be a disaster for the Republic.

To Learn More about the Initiative visit: Smaller Government Act